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Craftsman : Craftsman 2013
RAEME CRAFTSMAN 2013 21 Figure 3: Construction progressing at DNSDC, Moorebank -- May 2013 Logistics Services Business Model The improved logistics business model has been endorsed by the Defence Three Star Logistics Governance Committee and informs the way Defence will manage, plan and deliver logistics. As mentioned, this model leverages 'better practice' commercial processes adapted for Defence's unique operating environment. Logistics service delivery will be delivered through the LMM and W&D contracts, both of which are nationally outcome-focused services contracts. Figure 4 reflects how the LMM and W&D functions are executed at the JLU level. The light blue region represents LMM services. The inner box titled 'Service Delivery' represents the inter-relationship between the maintenance services contractor, the W&D contractor and the JLU, in the service delivery of logistics at the regional JLUs. Figure 4: Logistics services business model The Maintenance Management Functional Model at Figure 5 differentiates Commonwealth and contractor responsibilities. In summary, the roles and responsibilities within the improved logistics business model include: • Commonwealth staff having direct responsibility for the maintenance planning, including Fleet Maintenance Planning and Maintenance Work Planning. • Commonwealth and contractor personnel co-located to work together on planning and scheduling activities. • The contractor largely responsible for the day-to-day operation of the relevant functional areas in the workshop. • The contractor being accountable for equipment under repair and Commonwealth provided materiel, such as repair parts, specialist tools, jigs and fixtures. • The contractor being accountable for the quality of the work it performs. Figure 5: Commonwealth and contractor responsibilities for Maintenance Management A cornerstone of the way LMM services are to be delivered under the improved logistics services business model is that the responsibility for managing and planning maintenance will transfer to Commonwealth staff within the JLUs. Currently, with the exception of JLU (Victoria) at Bandiana, maintenance work planning is undertaken by the contractor and work is generally 'pushed' back from units to JLC workshops where planning is reactive and based on short term 'jobbing' arrangements. Network performance is largely driven by tactical performance measures such as maintenance hours expended. Under the new business model the execution of maintenance and associated maintenance support activities will be accomplished through a flexible and responsive performance-based contract delivered through the contractor using personnel with specialist and relevant technical skills. The new LMM services contract is founded on the principle of collaboration between the Commonwealth and the LMM services contractor, focusing both Commonwealth (JLU staff) and the contractor on achieving the common outcome of achieving the customer's 'Date Equipment Required' (DER). In addition, the maintenance culture within JLC will be focused through an enhanced performance management regime and significant training and skills development. At the strategic level, Defence Materiel Organisation (DMO) Fleet Managers will continue to manage maintenance of equipment fleets nationally in close consultation with an enhanced SCB maintenance staff. At the regional level, the execution of the maintenance function will be directed by Regional Fleet Managers and maintenance staff to meet regional customers' requirements, and will work collaboratively with the LMM Services Contractor. JLU will provide a responsive and Continued next page ...