Utilization of Modeling and Simulation as a Supply Chain Management Tool for a Recapitalization Program, The

Engineering Management Journal, Jun 2006 by Stingel, John D, Componation, Paul J

Abstract:

Modeling and simulation (M&S) has been described as one of the key enabling technologies of the 21st century. M&S has been applied to a wide range of operational problems. Supply chain management is an important aspect of operations for some organizations, and it is not surprising that M&S is being applied increasingly to solve supply problems. This article presents a case study of using M&S as a supply chain management tool for a military recapitalization program. It details the model development process, identifies the model's functionality and verification method, and demonstrates an application of an M&S tool to aid in the supply chain management of an Army aviation recapitalization program.

Keywords: Modeling and Simulation, Supply Chain Management

EMJ Focus Areas: Operations Management, Quantitative Methods & Models

For the next decade, recapitalization will be an important program within Army aviation. This is due to the relative age of the fleet coupled with system weight growth and older technology components contributing to decreased reliability and maintainability as well as increased operational and support (O&S) costs. Currently, there is no consensus on how many aircraft, over what period, and to what state they will be rebuilt. Little, if any, effort has been put into determining the program structure utilizing a systems approach to develop resource-loaded schedules. One way to assist in recapitalization is to utilize modeling and simulation (M&S) as a tool to analyze potential supply and schedule impacts- brought about by different recapitalization scenarios. To illustrate the benefits of M&S, a simulation model was developed for an Army aviation recapitalization program. The recapitalization model simulates the recapitalization process from procurement to maintenance and overhaul (M&O). The model provides a simulation tool the Army can use to forecast and conduct "what-if" analysis alerting program managers to activities that may influence the schedule and provide "look ahead" reports of upcoming activities not yet on the critical path. Results of the model allow timely development of work-around solutions and ensure early identification of issues and inconsistencies. This simulation tool, combined with a user interface, demonstrates the ease of experimenting with various process improvement activities and serves as a supply chain management model for simulating the recapitalization process.

Background and Context

Driven by the need for dramatically more affordable defense technologies, Department of Defense (DoD) leaders have been challenging the defense research community to adapt simulation based acquisition for all future system acquisitions or major upgrades. As a result, M&S has become increasingly popular in DoD. The need for M&S techniques has increased as M&S proves to be a useful tool in saving valuable defense acquisition dollars. M&S techniques are being used in Army aviation recapitalization efforts to acquire significant savings for future upgrades and modernization activities.

Early models of the Army's Black Hawk helicopter fleet will begin reaching 30 years of service in 2007. Increased operational tempo and the age of the airframe, components, and systems are adversely influencing the fleet. This is resulting in increased O&S costs and decreased reliability and maintainability.

The UH-60A Black Hawk models do not possess the necessary digital avionics architecture to meet future Army interoperability communication requirements. One deficiency is that the existing avionics do not comply with the International Civil Aviation Organization and Federal Aviation Administration traffic management requirements planned for implementation in 2003. Also, current navigation systems do not provide the precision required to deploy personnel and equipment during combat operations over land and water, especially in darkness and adverse weather conditions.

The U.S. Army organized a study to investigate how to solve the challenges put forth by the aging Black Hawk fleet. The investigation found that the optimal solution would be to pursue a tiered modernization approach involving the recapitalization of UH-60A model Black Hawk helicopters to sustain the fleet until the induction of future models that would bring the entire fleet into compliance with future requirements.

Problem Statement

A request was made to investigate various tools that can be utilized to aid in supply chain management and develop the optimal approach for the recapitalization of the Black Hawk fleet. The optimal approach for recapitalizing the fleet should not influence the current operational tempo of the aircraft and should effectively utilize recapitalization facilities.

Response

In response to the identified problem, it was determined that a simulation should be developed to model the supply chain involved in recapitalizing Army aviation assets. The developed M&S tool coupled with the knowledge of experienced program managers will form an invaluable tool for programmatic analysis. The M&S tool will provide program managers with the ability to study the affects of adjusting the induction schedule on cycle time and number of aircraft produced per year. It will enable the program manager to make quarterly adjustments to the induction schedule and calculate yearly costs and associated differences with budget based on estimated cost per aircraft.