Examining the Successes and Challenges when Operating in Stressful Environments
Abstract
The nation is facing a critical period with rising costs, while overall government budgets are in many cases declining. At the same time U.S. firms are facing increasing global competitive pressures, requiring them to reduce costs. These financial conditions require logistics support strategies, such as performance-based logistics (PBL) solutions, that can both improve system availability, while reducing costs. PBL is a logistics support solution that transfers inventory management, technical support, and the supply chain function to a provider who guarantees a level of performance at the same or reduced cost. In most cases, PBL contracts are multi-year agreements (5-15 years) according to which the chosen contractor manages a given system’s product support. There is ample empirical data that demonstrates that PBL produces desired outcomes in the key performance areas of availability, reliability, logistics footprint, and cost. Although PBLs have demonstrated these benefits, there appears to still be a reluctance to implement these performance based arrangements. Given its history of success, it is unclear why PBL is not being aggressively pursued more broadly throughout the private sector and government. We posit that while PBL may appeal to users and program officials from a theoretical standpoint, some are reluctant to embrace this strategy for fear that product support providers may be unable or unwilling to perform at the same high level during times emergency and contingency operations. The proposed study will address the validity of this claim by examining the performance of PBL sustainment programs operating during periods of crisis, or in support of emergency and contingency operations; and determine the extent to these sustainment strategies falter and/or fail. In this study we will examine several cases where systems were supported using a PBL strategy, in an extremely stressful environment. Based on their research, the team will analyze performance data, and identify challenges experienced and lessons learned, and make recommendations to improve in-theater PBL implementation.
Document Details
- Document Type
- DoD Grant Award
- Publication Date
- Aug 09, 2016
- Source ID
- N002441510011
Entities
People
- William Lucyshyn
Organizations
- United States Navy
- University of Maryland