SOLE 2012 Logistics Conference in Jacksonville, FL
Systecon presented a paper at SOLE 2012 - the 46th Annual International Logistics Conference and Exhibition in Jacksonville, Florida on August 14-15.
The focus of the presentation was how simulation of maintenance logistics and operations may be used to provide decision support when negotiating a Performance Based Logistics (PBL) contract.
The paper was written and presented together with Systecons representative WPI Services.
Below follows the abstract for the paper. For a copy of the paper and the presentation, please contact Systecon.
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Abstract :
Performance Based Logistics Negotiations: Simulation as Support for Decision Making
Olle Wijk PhD, Oskar Tengö MSc, & Justin Woulfe MSc
Performance Based Logistics Contracts have the potential to reduce cost to the Government, while also increasing capability. This is contingent on the right set of metrics and cost targets being developed to ensure the right contractor incentive. Developing an accurate “should cost” model and performance targets that reflect operational needs and realities is critical to program success, government satisfaction, and the right level of contractor profitability.
In this paper a general simulation based methodology is proposed for decision making in PBL contracts. Using an advanced logistics simulation tool to analyze system performance and life cycle cost as part of a robust decision model, it is shown how the logistician can quickly analyze the effects of various reward or penalty scenarios, the cost impact of decisions, and the resulting mission capability that is expected quickly and accurately as part of the business case development, proposal development, or negotiation process.
The methodology is exemplified in a scenario where a Performance Based Logistic (PBL) Contract is negotiated. The decision model in this case becomes a reward distribution f(R) which is calculated from pre-stored Monte Carlo based simulation results. It is shown how the reward distribution analysis can easily be fitted into a spreadsheet application.
The methodology described has been applied in a number of business cases. This paper discusses lessons learned experiences within this context.
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Regarding SOLE 2012:
This years SOLE conference was titled “LOGISTICS SURVIVABILITY: 2012 AND BEYOND”
SOLE – The International Society of Logistics hosted two days of educational and topical workshops and sessions. Some of the world’s leading subject matter experts led the conference attendees in addressing a broad spectrum of issues critical to understanding the significance of logistics in the “survivability imperative.”
Under the leadership of this year’s General Chair, MG (Ret) Michael E. Sumrall, former Assistant to the Chairman, Joint Chiefs of Staff (National Guard Matters) and Acting Director, Joint Staff, National Guard Bureau, the conference was structured to explore all aspects of logistics and survivability. The two-day symposium examined the issues and interrelationships surrounding current challenges, from both strategic and operational perspective. Focus areas included:
Survivability in the Face of Chaos
- The Role of Logistics in Survivability
- Planning for Survival
- New Times, New Paradigms
- The Future of Logistics