At the same time that global hostilities mount, fiscal pressures weigh heavily on the Department of Defense’s (DoD) ability to confront them effectively and efficiently. The challenges are particularly acute in the DoD’s maintenance and supply chain enterprise.
The DoD’s extensive Maintenance Enterprise poses daunting risks (see sidebar, “The Department of Defense Maintenance Enterprise”). Maintenance needs are complex and highly unpredictable even in peacetime. The Department’s current operations require high levels of customization and production of parts in remote locations in low volumes and on tight timelines, imposing high entry barriers for suppliers of traditionally manufactured parts. The consequences are lower operational readiness and sortie rates, higher transportation costs, reduced process predictability, long lead times, and considerable excess inventory and waste.