NOLSC AMMO operations

Navy Supply Corps Newsletter, Jan-Feb, 2005 by David Wasberg

The Focus

The Naval Supply Systems Command is committed to making cost-effective improvements in ordnance life cycle management to maximize combat capability. Naval Operational Logistics Support Center Ammunition's (NOLSC AMMO's) primary responsibilities involve maximizing ordnance availability and improving stockpile total asset visibility. All of the integrated ordnance supply chain management, waterfront support, and policy initiatives moving forward within NOLSC AMMO ultimately support these objectives.

NOLSC AMMO Operations

The Operations Department is comprised of a core team of about 80 military, civilians and contractors located in Mechanicsburg, Pa., and is responsible for a conventional weapons stockpile valued at over $30 billion and spanning 13,000 stock numbers. The Operations Inventory Management team satisfies requisitions and coordinates closely with program managers (PMs) at Naval Air Systems Command (NAVAIR) and Naval Sea Systems Command (NAVSEA) to maximize ordnance availability and satisfy fleet and other customer requirements.

Inventory managers also closely coordinate with the NOLSC Crisis Response Center (CRC) responsible for coordinating high visibility emergent combatant commander support for Operations Enduring Freedom and Iraqi Freedom.

The Operations Department functions partially extend to the NOLSC AMMO Waterfront Support Department (AMMOLANT in Norfolk, Va., and AMMOPAC in San Diego, Calif.) as they provide direct requisition management assistance to fleet customers as part of their face-to-the-customer support role.

Maintaining a global perspective on requirements, allowances, priorities and asset availability allows NOLSC AMMO to effectively influence both asset distribution and procurement actions by serving as the vital link between PMs who procure ordnance and war fighters who carry and expend ordnance.

Managing this ordnance stockpile is complicated by factors such as net explosive weight (NEW) and material compatibility restrictions, security restrictions, and treaty obligations to name a few.

Additionally, NOLSC coordinates the ordnance safety notification program, provides Explosive Safety Inspections (ESI) and technical assist visit support, orchestrates OCONUS ordnance movement and supports Joint Chiefs of Staff and Chief of Naval Operations real time data feeds.

Traditional Inventory Management vs. Ordnance Inventory Management Ordnance logistics life cycle management involves several important differences compared to logistics programs supporting other material classes.

Ordnance procurement is program based versus demand based. Unlike procurement requirements that are driven by demand, ordnance requirements are calculated through the use of planning factors and mathematical models and include combat, training, testing and strategic reserve requirements. OPNAV programs funding to support individual weapons PMs at NAVSEA and NAVAIR are based on these calculations.

Traditional inventory management replenishment is based on consumption. For ordnance, NAVSEA and NAVAIR award procurement contracts using the programmed funds provided by OPNAV.

NOLSC AMMO performs traditional inventory control functions after the assets are delivered into the stockpile. Material is issued to customers, consumed and expended from accountable records. Ordnance material stays on the books until it is expended during combat or training, sold to a foreign country, or reaches the end of its service life and is sent to disposal. As such, ordnance is issued to retail customers to support deployments, specific missions or forward positioning, but the vast majority of these assets are returned to wholesale stock points at the conclusion of each retail customer's mission.

Ordnance has the potential to be maintained on accountable records for many years, with assets changing custody between a myriad of wholesale, retail, and commercial activities. Maintaining asset visibility of ordnance is compounded by the need to track most ordnance items to the serial/lot number level in order to provide customers with the exact configuration of ordnance required.

Operations Initiatives

Several major initiatives are underway to support NAVSUP's strategic goals for ordnance life cycle management and in particular to improve ordnance availability and asset visibility.

* NOLSC has begun publishing a monthly AMMOGRAM to provide the ordnance community with timely and relevant information concerning sensitive ordnance logistics issues and sharing a broad range of logistics performance metrics that flag poor performing areas for management attention.

* NOLSC is leading an effort to rewrite ordnance positioning business rules and methodology to reflect the new Fleet Response Plan approach to maintaining readiness and combat effectiveness while supporting Defense Planning Guidance.

* NOLSC is also working to incorporate the best DoD and commercial practices into inventory sampling programs to increase effectiveness and inventory accuracy and to reduce the cost burden associated with accounting for a $30 billion plus stockpile. Improvements include a shift to a Grand Lot Sampling approach that rewards top performing activities with reduced sample sizes and frequency, incorporating improved Statistical Process Control toOIS and methodologies for the largest ordnance stock points to use in managing internal processes, adding flexibility in choosing inventory methods based on the size, complexity, and stock turn at individual ammunition stock points and establishing tailored performance objectives based on both security and operational risk.