Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
1
ATO: Moving Toward a
Performance Based
Organization
Operations Research Challenges
in Transforming Aviation
Presented to: NAS Performance Workshop, Mar 06
By: Dr. Wilson Felder, Director, Office
of Technology Development, ATO
Federal Aviation
Administration
The Operations Research Problem in
Aviation
4 The National (and International) Airspace System is
a complex system of systems
4 Interactions among aircraft, the system, and the
economy are poorly understood
4 We need to apply the tools and disciplines of
operations research to this complex set of
questions
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
3
OR Questions for NGATS Transition
4 What mechanisms transform aviation investment
into economic growth in communities?
4 How can widely divergent potential solutions be
compared and evaluated?
4 What are the (perhaps unforseen) consequences of
policy decisions with respect to:
– Control of resource utilization?
– Investment in infrastructure?
– Adjustment of tax base and rates?
4 To mention only a few…
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
4
Managing the Transformation is in
Essence an OR Problem!
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
5
So, Just How Far Have We Come…
….Anyway?
4 2003 – ATB (Well , I’m being parochial…)
4 2004 – Russ Chew (Wow!)
4 2005 – hmmm…
4 2006 – and, heeere we are!
4 2007 -- ???
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
6
From Asilomar Workshop 2003
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
7
Why Should we have an ATO?
4 First answer: procedural
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–
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NCARC
MAC
FAIR-21 call for ATO
Clinton Executive Order, reissued by present Administration
OMB guidance
President’s management guidance
4 Second answer: practical
– Alignment and focus of resources at point of service delivery
improves speed, flexibility, response, and efficiency
– Pace of growth, and changes in aviation industry, require us to be
even more customer focused than we have been.
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
8
What is a PBO
4 Rule-Based Organization
– Functional focus
– Loyalty to functional organization
– Functional organization objectives
vary
– Organized around functions
– Roles/responsibilities defined in
terms of functional expertise and
process
– Functional responsibility
– Procedural
– Obsessed with procedures/
reducing change
– Organization takes responsibility
for training individual
Wilson Felder
NAS Performance Workshop Asilomar 2006
4 Performance-Based Organization
–
–
–
–
–
–
–
–
–
Mission/service focus
Loyalty to mission/service
Single mission/service objective
Organized around mission/service
Roles/responsibilities defined in
terms of service provided to
external customer
Customer/service responsibility
Flexible (risk related)
Obsessed with results/
customers/change
Individual takes responsibility for
own training
Federal Aviation
Administration
9
What does “Business Like” mean?
4 Not blind emulation of private sector behaviors!
4 Four elements:
– Efficient decisionmaking processes
• Procurement reform, OEP, FFP1, Runway incursion office
– Fiscal discipline
• Cost accounting, Clean audit, LDR
Establishing these first two elements has already been underway for
the past several years
– Customer orientation
• This is what ATB is modeling for a future ATO
– Objective measures of performance
• Budget reorientation by OMB
• OEP and ATO measurements
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
10
From Asilomar Workshop 2004
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
11
CUSTOMERS
Commercial Aviation
• Airlines
• Cargo
Business Aviation
Private Aviation
DHS (and other Government Agencies)
Military (DOD)*
* Partner with ATO
OWNERS
U.S. Citizens*
Traveling public*
Taxpayers*
*As represented by Congress
Office of Management and Budget
Secretary of Department of Transportation
Inspector General
Wilson Felder
NAS Performance Workshop Asilomar 2006
EMPLOYEES
ATO Individual Federal Employees
Labor Unions
Federal Aviation
Administration
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The New ATO Organization
4 Operate as clearly defined, service-based business units
– Cost Accounting is essential and necessary
4 Ensure affordability in operations planning… connection between
expense planning and capital budgeting
– Reduce unit cost of sustaining existing services
4 Create transparency in financial and decision processes
– Satisfy expectations of Customers, Owners, and Employees.
4 Streamline by simplifying matrix management processes
– Examples: Major Acquisitions, System Operating Priorities, etc.
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
13
A Window of Opportunity Exists
4 Time is short
– Must complete the reorganization in FY2004 to achieve the
desired results and performance baselines for FY2005.
– ATO business unit alignment must be concluded before
redefinition begins in early 2004.
4 Plan is very aggressive
– Phase 1: Redefinition and Cost Accounting.
– Phase 2: Cost Control and Productivity.
– Phase 3: Service Value and Innovation.
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
14
Why Wasn’t There an
Asilomar Workshop 2005?
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
15
New For Asilomar Workshop 2006
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
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How do we make sure Transformation Happens?
4Scout out the required technologies
4Assess them quickly
4Manage them to implementation
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
17
Into the Valley of Death…
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
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What is the “Valley of Death”?
$$$$$$
Implementation
R&D
Life Cycle Stage
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
19
Step One: Find the “Right Stuff”
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
20
Sources of Transformational Ideas
4 NASA Aeronautics Program
– E.g.: SATS
4 FAA Internal R&D
– E.g.: Technical Center laboratories
4
4
4
4
FAA Funded Research
Industry IR&D Programs
Academic community
Entrepreneurs (Congressional Interest)
NGATS Candidates assessed by Development Liaison Team;
Total Package managed as a Portfolio
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
21
Step Two: Is it Really the “Right Stuff”?
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
22
How do we know? Three Questions
4 Does the technology work?
4 Can we make it work in the NAS?
– Airspace, procedures, training, pilot/controller acceptance,
certification, logistics, maintenance, regulation, avionics,
spectrum, architecture, etc., etc., ….
4 Is there a viable business case for the ATO?
An affirmative answer to these questions
leads to a capital investment decision
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
23
Technology Development Projects Moving
to Initial or Final Investment Decisions
• System Wide Information Management (SWIM)
• Automatic Dependent Surveillance Broadcast (ADS-B)
National Deployment
• Capstone Phase III (Alaska Safety Enhancements)
• Runway Status Lights (RWSL) (Incursion Reduction)
 Critical NGATS Building Block
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
24
Future Demonstration Candidates
4 Phased Array Radar
– Next generation Federal weather sensor
4 Cockpit Weather Products
– Air transport pilots would have access to enhanced weather products
currently available to air traffic control and traffic flow managers
4 Enhanced Inertial Navigation 
– Low cost, high precision, low form factor inertial navigation systems
4 NGATS Evaluator 
4 Unknown unknowns
 Critical NGATS Building Block
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
25
Step Three: Manage to Implementation
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
26
Key Principles
(for managing to implementation)
4 Development Portfolio Managed as an entity
4 Every Project has an Investment Decision as a Goal
4 FAA Top Management Guides the Process
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
27
Managing the Transformation is in
Essence an OR Problem!
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
28
NEXTOR’S Role
4 Keep the community honest
4 Think about the future
4 Analyze the data
– Forecasts
– Simulations
– Performance results
4 “Speak Truth to Power”
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
29
www.ato.faa.gov
Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
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Wilson Felder
NAS Performance Workshop Asilomar 2006
Federal Aviation
Administration
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