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SPECIAL TRANSFORMATION EDITION - Defence Support Group

DIGEST

SPECIAL TRANSFORMATION EDITION

October 2011 / Issue 2


www.dsg.mod.uk

Introduction

Over the years, we have been keeping you all informed about DSG’s

transformation journey in Digest. The articles covered several initiatives including

transformation across the various workstreams and sites, roll out of Enterprise

Resource Planning and Business Stabilisation.

The changes made to shape our future are through the significant effort and

commitment of all DSG employees. As you read on the message is clear, our

transformation journey is not complete, it is on-going and we must all continue to

play our part to ensure we improve the service we deliver.

It remains our intention to keep you all fully updated and in this special edition of

Digest we recap on how it all began, our performance targets and achievements to

date, a review from each directorate on their success and our future strategic

direction.

I hope you find this edition informative and useful.

If you have any questions, please contact Sandra Lumb, Programme

Transformation manager on 01264 383901 or email sandra.lumb@dsg.mod.uk

Venus Tingzon

Editor

Contents

3 Foreword by the Chief Executive DSG

4 How it all began

5 Performance targets and achievements to date

6 Operations workstream

7 Improvements with Operational Excellence

8 DSG in the Operational Environment

10 Operational Excellence - a continuous journey!

12 Finance Workstream

13 Enterprise Resource Planning - Stabilisation and Optimisation

14 Commercial workstream

15 Transformation aided by forecast management and inventory planning

16 HR workstream

17 Strategy workstream

18 Where is DSG today?

19 Growing capabilities - transforming to support defence

20 Growing capabilities - The Reinforcing Fleet

22 Growing capabilities - past, present and future

2


Foreword by the

Chief Executive DSG

Archie Hughes, Chief Executive DSG

Many of you are already aware that in our first year of trading, our MOD owner set us specific Key Targets to

establish and deliver a five year Transformation Plan by December 2008, with the aim of returning the Land

business to profitability, exploiting merger synergies and reducing costs.

By the time we established the DSG Achieving Rapid Transformation (DART) programme in April 2009, we

had already achieved significant benefits, which we reported in the Digest Special Transformation Edition,

issue 1.

All of the various Directorates and work streams have worked hard to play their part in achieving our critical

transformation objectives. Pivotal to our transformation programme was giving greater transparency,

accountability and autonomy to our business units by empowering them with the opportunities and freedom

they need to make important day to day decisions.

I am proud to report that thirty months on from the establishment of the DART programme we have achieved

or exceeded all our transformation targets. This includes improvement in efficiency, reduction in corporate

overhead and purchase price variance reduction. With the support from across the sites we have successfully

delivered key initiatives including Operational Excellence; introduction and optimisation of Enterprise Resource

Planning; Business Optimisation and development of a Capability Growth Programme to meet future MOD

procurement and support solutions.

The last three years has certainly been busy. As well as our transformation programme, our range of

capabilities has expanded in areas such as Land Supply, Assembly, Integration and Test, Vehicle Storage

Inspection and Receipt as well as Deployed Support. These necessary changes have increased our pivotal

role in supporting the end to end support lifecycle of military equipment and platforms.

We successfully delivered our initiatives despite having to review our budgets in line with the 2010

Comprehensive Spending Review. Without undermining our outputs, not only did we have to start doing more

for less but we have also been shrouded in uncertainties regarding our future after it was announced in the

Strategic Defence and Security Review that as an MOD asset, DSG is potentially up for sale. We remain a

strategic asset continuing to drive through improvements to make us a lean and modern organisation, with the

necessary infrastructure to fulfil the role of key Strategic Support Supplier, irrespective of whether we are

owned by the public or the private sector.

Our remarkable transformation journey is down to DSG’s greatest asset, its people. However, increasing

pressure on budgets and declining customer demand has led to reductions in employee numbers, but our

streamlined operations output has been elevated by the immense positive attitude of all DSG employees who

take great pride in their work in our core mission of supporting the UK’s Armed Forces.

We have achieved a remarkable amount since 2008 but our transformation journey is not yet complete. The

defence environment is changing, presenting DSG with new challenges. As a business, every one of us

needs to continue to demonstrate our abilities to change to match evolving customer demands. The next

phase of our transformation journey is about Capability Growth which will involve DSG continuing to grow its

broad portfolio of support capabilities to help MOD and the Armed Forces’ continue to deliver their operational

requirements. By maintaining the momentum we can shape DSG for the future and continue to provide best

value for Defence.

Archie Hughes

3


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How it all began

IN ITS FIRST YEAR OF TRADING, DSG WAS TASKED BY ITS MOD OWNER WITH A SPECIFIC

KEY TARGET TO ESTABLISH AND DELIVER A FIVE YEAR TRANSFORMATION PLAN BY

DECEMBER 2008, WITH THE AIM OF RETURNING THE LAND BUSINESS TO PROFITABILITY,

EXPLOITING MERGER SYNERGIES AND REDUCING COSTS.

The Transformation plan formed the basis for the DSG Achieving Rapid Transformation (DART)

programme, which sets out how DSG intended to transform the business over the five year period,

through four main development stages:

Securing the benefits of the ABRO and DARA merger

Get control of the business

Optimisation of the ‘As is’ organisation

Transition to the ‘To Be’ organisation

The Transformation Programme originally concentrated on the delivery of a number of function based

projects and initiatives addressing all aspects of the DSG “As Is” business and embedding a change

programme, governance and processes into the day-to-day DSG management disciplines.

As the Transformation Programme progressed, the emphasis shifted from central workstreams to a

series of ‘business excellence’ initiatives, including the introduction of an Operational Excellence

programme, the implementation, pan-DSG of the Enterprise Resource Planning (ERP) system,

embedding the Sales and Operations Planning (S&OP) process into the business as well as the

restructuring of the Supply Chain and the introduction of the Revised Pricing Agreement.

Merging/Vesting Get Well/Control Optimisation Transition

Operations Workstream

Sustainability

& Utility

Finance Workstream

Commercial Workstream

Performance

Human Resources Workstream

Strategy Workstream

Customer Intimacy

ROCE

Strategic Positioning

Leadership

Teamwork

Staff Development

TU Partnership

Business Excellence Initiatives

Agility

4


Performance targets

and achievements to date

DSG SETS ITS KEY INTERNAL BUSINESS TARGETS AT THE START OF EACH FINANCIAL

YEAR, WHICH ARE USED TO MEASURE ITS OVERALL PERFORMANCE AND THIS

UNDERPINS THE DSG TRANSFORMATION PROGRAMME.

The targets are set within the business through the planning process and the Critical Success

Factors (CSFs) embedded in the Corporate Strategic Plan. The plan is cascaded down to the

Business Streams, Support Functions and into personal objectives.

At the start of the DART programme, four specific Transformation targets were set to be delivered

over a five year period.

Through the significant effort and commitment of DSG employees in delivering the Transformation

Programme, DSG has made a number of improvements, which not only reaps internal benefits but

also adds value to the services we provide to our customers and overall to defence.

The original four specific targets were based on the 2008/09 Financial Plan and the 2009/10

Proposed Plan, with the aim of:

1

2

3

4

TARGET

Securing a 20% efficiency improvement,

over a five year period

Reducing the Corporate Overhead from

£28m to £12m

Purchase Price Variance target to be

reduced to £500k

Reducing the average cost of labour

within the Land business – this was set

with the aim of reducing average cost of

labour, over a five year period

RESULT

An 18% efficiency improvement was achieved by the end of

financial year 2009/2010. Whilst DSG continues to deliver

efficiencies, this target has been discontinued as DSG aligns

capacity with declining customer demands.

Corporate Overhead reduced from £28m to £8.9m by the end of

financial year 2010/2011. Overheads continue to be driven down

across all areas of the business.

This target was delivered by end of financial year 2008/2009 and

has been maintained at this level, or better ever since.

Achieved 2008/2009 to 2010/2011. DSG has now moved away

from average cost through the implementation of the Revised

Pricing Agreement.

In addition to the four Transformation

targets, each directorate established

work streams to provide a route map

for the organisation to address the

critical transformation objectives and

meet the aim of:

Building on the merger,

establishing and optimising the

DSG business through

operational excellence

Financial coherence, ensuring

robust financial control and

planning processes

Maximising human resources,

developing a single, focussed

and empowered team with the

right skill base

Sustainable strategic positioning

Commercial modernisation

Providing best value for defence

Before looking at the achievements against each Directorate here is a reminder of

what DSG as a whole has delivered:

A unified Board and Governance

structure established

£12m of cost savings achieved in

the first year of operation

£10.4m rebate delivered to the

Land customers

Total dividend of £12m delivered to

the MOD owner

All key targets met or exceeded

DSG re-established its role within

defence and with industry and is

recognised as a provider of

assured support to MOD Land

and Air, both on shore and on

operations

Capability and capacity

optimisation strategy agreed and

implemented in order to meet

customer requirements, post

merger its implementation

will deliver a £10m efficiency

savings each year from 2011/12

onwards

Sales and Operations Planning

process introduced pan-DSG

Restructured business into

Business Streams and Support

Services

Streamlined Corporate structure

5


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Operations workstream


The roll out of ERP is a major step on the path to

Operational Excellence. We must now build on the core

set of ERP processes by optimising the organisation,

supporting policies, procedures and systems to ensure

that DSG has a coherent and compliant Business System

to deliver a value for money service to our customers.

We need to ensure during this transformation that we

develop a culture which embraces the importance of

Quality, Health & Safety and Environment whilst striving

for world class efficiency.


John Reilly, DSG Chief Operating Officer

Transformation successes under the leadership of the Operations workstream:

DART established as the delivery vehicle for transforming DSG

Enhanced support to Defence:

Over the last three years DSG demonstrated its ability to provide assured on shore support. It has

expanded its operational role in Bastion, Training Fleet, Operational Training Equipment Pool and

developed wider provider capabilities including assembly, integration, supply chain and vehicle

storage

Operational Excellence (OE):

The implementation of OE principles and methodology improved husbandry, housekeeping and

operational processes

Continuous Improvement Programme:

Continuous Improvement (CI) focuses on improving customer value through continuous and

incremental improvement to processes. The Transformation Programme initiatives and projects

contribute to CI by identifying and removing unnecessary activities resulting in efficiency,

effectiveness and enhanced flexibility. CI is not just a programme initiative, it is standard business

practice to aim for continual improvements

Enterprise Planning System:

Fully implemented across all work streams and provides DSG with the platform to apply consistent,

sustainable processes and practices across the business, resulting in enhanced visibility and

control of the business

Estates, IS and Telecommunications:

IS has established single Change, Incident and Configuration management functions around an

optimised set of policies and processes. Consolidation of the DSG domain by migrating all merged

businesses, users, systems and application onto a single DSG system. Introduction of a

standardised DSG desktop, resulting in a simplified and accelerated logon process for users with a

unified corporate look and feel across all sites. Facilities department is progressing improved

reporting and key performance indicators with Babcock. Only three sites remain to transfer fully to

the Babcock service. The planned rollout of AIMS will result in an optimised single business

system across DSG

Compliance and Technical Support:

Implementation of a pan DSG compliance audits, records and non conformances system. Plans

are in place for roll out of pan DSG compliant documentation control system and change control

procedures using existing ERP system functionality. These initiatives and adherence to DSG

policies and procedures will not only drive improvement but ensures continued compliance with

legislation and all required business certifications

Processes and Systems:

Establishment across operations of effective, measurable and consistent, processes and practices

using optimised IS tools and software

6


Improvements with

Operational Excellence

Change and transformation have

become an integral part of today’s

business environment, every DSG

site and department has been

involved, in some way, in the

delivery of the Transformation

Programme. One of the major

deliverables is the introduction of

Operational Excellence (OE) by

the Operations workstream. The

implementation of OE principles

and methodology has improved

husbandry, housekeeping and

operational processes. The

improvements are visually clear to

see but the changes have also

had an impact in the culture with

the majority of employees

embracing the positive effect.

The Donnington site introduced a

pulse line in the A Vehicle strip,

which makes a significant

improvement to the operational

efficiency and working

environment as explained by John

Cadman.

“In my job as a Process manager I

have seen major changes within

the business in recent times. In

my area of operations the

introduction of the A Vehicle strip

flow line has seen major benefits

both in the control and throughput

of vehicles to the improved

working environment and health

and safety conditions for my team.

With the introduction of new

methods of working including

Strip, Survey, Stop, managers and

team leaders have gained greater

control and visibility of hours

booked and requirements from

their teams to generate cash flow

Donnington pulse line

for the business whilst following

detailed work to lists produced by

Baan. We have a better

understanding of what is required

to do the job and with tighter

controls on material and better

information from both Planners

and Engineers I can only see

positive change continuing.”

In October 2010, Andy Hursey,

Head of Colchester, took over the

operational running of the Logistic

Commodities and Services (LCS)

formerly Joint Support Chain

(Services) vehicle activity in

Longmoor under an Interim

Operating Model. The site is

responsible for managing Materiel

Park Vehicles, which play a vital

role in the provision of vehicles for

training.

Andy explains, “My team and I

believe in the importance of the

OE programme and this is evident

in the changes we have made in

the Colchester main site. When

we took over Longmoor, I felt that

it was important for the site to feel

a part of DSG. We used the OE

principles as a foundation to take

us forward with the focus on being

one DSG.

“OE was something new to the

LCS employees. They liked what

they saw at the Colchester main

site and were keen to be involved

in applying best practices within

their own working environment

and teams.

“We rolled out presentations to

educate the workforce and

welcomed everyone’s input on

improvements. All of the hard

work has paid off, the site has

undergone major transformation.

We tackled the layout, set up,

standardisation, communication,

business information and visual

displays, of course with splashes

of the corporate teal.

“Offices, rest rooms, shop floor

and storage areas have been

cleared out and refreshed. These

have been long overdue and we

now have set the base-line for

further improvements when we

are in full operating capability.

“This is just the start of the

journey, there is more to come

and develop over the coming

months and years.”

Longmoor Operational Excellence Team

7


www.dsg.mod.uk

DSG in the Operational

Environment

THE DEPLOYMENT OF DSG EMPLOYEES TO PROVIDE EQUIPMENT SUPPORT (ES) IN AN

OPERATIONAL THEATRE IS NOTHING NEW. HOWEVER, THE CURRENT DSG-OPERATED

FACILITY IN CAMP BASTION, AFGHANISTAN IS UNUSUAL AS IT IS THE FIRST TIME,

PROBABLY SINCE KOREA, THAT THE BRITISH ARMY HAS HAD A “BASE” WORKSHOP

DEPLOYED INTO THE OPERATIONAL THEATRE.

The Prime Minister David Cameron in the Equipment Sustainability System (ESS)

Regeneration Capability (RC) in Camp Bastion

Digest covered several articles

on DSG in BASTION

highlighting the critical work its

employees are providing at the

front line but DSG needs to

consider why the customer

community may wish to use its

skill set in the future and how it

can meet this requirement.

The rapid introduction of

significant new vehicle fleets

into the austere and distant

environment of Helmand

Province required new thinking

to support the fleets.

Insufficient vehicles were

procured to generate a

sustainment fleet, like the

legacy armoured vehicle fleets

in the UK, to underpin

programmed work-load. The

distance to theatre from the

home base also precluded any

prospect of returning vehicles

or other equipment back to the

UK for deep repair.

In terms of qualitative

improvements, the spectrum of

activities DSG is now carrying

out in theatre has developed,

moving from just the traditional

depth repair of vehicles to now

encompassing services for

which DSG is renowned,

including electronics, calibration

and modification programmes.

“The Equipment Sustainability

System (ESS) Regeneration

Capability (RC) is delivering the

intended effect of enhancing

operational capability, reducing

pressure on the Air Line of

Communication and providing

value for defence” says Major

General Roddy Porter,

Permanent Joint Headquarters

(PJHQ).

The ESS RC operation

managed by DSG has delivered

considerable success, with cost

benefit ratio 22% better than

expected and cost reductions in

first year estimated at £23M.

“DSG has proved to be less

expensive than anticipated”

Adds Major General Porter.

ESS has proved that DSG has

the appetite to deploy and

operate a significant force

multiplier into the operational

environment. DSG now has to

prove that it can take this

practice and its future

aspirations by continuing to

deliver better operational

support solutions in the future.

The British Army is currently

reviewing how it provides

support to equipment and is

developing the concept of the

8


The Prime Minister David Cameron with the DSG team responsible for operating the ESS RC

Total Support Force, the idea of

which is to have industry and

Reserves integrated into

Regular structures against

readiness assumptions and

agile force generation

requirements. This will also

integrate into the concept of

Service Provision, which is the

agile and responsive supply of

equipment services required to

enable the delivery of a

capability for training, standing

commitments and operations to

deliver increased operational

effectiveness, agility and

adaptability within agreed

timescales at reduced cost.

The traditional position of DSG

as a reactive provider within the

support arena has changed

significantly in direct support to

military operations. At PJHQ’s

request DSG is now providing

the UK-based support team to

ESS, almost acting as a

Defence Equipment & Support

Project or Delivery team in

planning, designing and

delivering support solutions for

new equipment as it deploys to

Afghanistan. DSG is trusted to

do more, but what does this

mean for the business?

DSG needs to plan to deploy

on operations and deliver

holistic support solutions

Consider the use of DSG

employees who are Army

Reservists

Decide who would form the

core of the DSG deployable

team

DSG employees to deliver

mentoring and training to the

Regular soldiers who are

likely to spend more time in

DSG's UK facilities.

The service delivery requires a

fleet availability contract instead

of today’s current equipment

centric transactional activity.

ESS RC workshop with equipments undergoing repair

All photos with Prime Minister taken by Sergeant Alison Baskerville RLC © Copyright MOD

9


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Operational Excellence

- a continuous journey!

THE DSG OPERATIONAL EXCELLENCE PROGRAMME PROVIDED THE IMPETUS, DIRECTION

AND MEASURES FOR DSG DONNINGTON TO MAKE IMPROVEMENTS ACROSS THE SITE,

KICKING OFF THEIR JOURNEY FOR TRANSFORMATION.

Before – The Light Weapons workshop

before the transformation journey

After – Improvements to the Light Weapons

workshop after adopting lean principles

Whilst, the Light Weapons

workshop already had an

established reputation with its

customers for delivery and

quality, Donnington decided it

was ideally suited to adopt lean

principles and techniques and

used as a benchmark for the

rest of its business.

TONY OWEN, DSG

DONNINGTON CHANGE

MANAGER EXPLAINS HOW

LIGHT WEAPONS CHANGED

THE WAY IT OPERATES.

Firstly, the team took a step

back and assessed their

current processes. They

identified that there was lots of

Work in Process (WiP),

bottlenecks within key

supporting areas, similar

processes replicated

throughout the building, long

throughput times, poorly

configured work areas and

spares shortages all leading to

unnecessary waste.

The current products were

assessed for suitability for

phase one using the Define,

Measure, Analyse, Improve,

and Control (DMAIC) principles.

After evaluation, the SA80 strip

for modification programme

was finally chosen.

From the start it was important

to ensure that the Management

and Workshop teams shared

the same visions, goals and a

commitment to achieve

excellence. The Light Weapons

manager, Process engineer,

and the local Operational

Excellence team delivered the

change tools and techniques to

the teams. In a change

environment it is natural for a

few concerns and issues to

arise. However, agreeing to

adopt a step by step approach

allayed the fears.

The first phase started by

setting Specific, Measureable,

Attainable, Realistic, Timely

(SMART) objectives.

The staff were first asked the

question “How do you think it is

today?” and from this the team

drew a map of the current

process. Walking through the

actual process, the team

created a new map

demonstrating “How it really is”.

This highlighted the differences

between perception and reality

and the process steps were

categorised into value-adding,

non-value adding and waste

activities.

By looking at ways of reducing

the non-value adding steps and

eliminating the waste, within the

process, the decision to

introduce single piece flow for

this product was agreed. To

understand the concept the

team underwent simulation

training in a classroom

environment in order to develop

an understanding of the levels

of support required to succeed.

Within the building, a trial area

was set up which allowed staff

the opportunity not only to

participate in the design but to

ensure that the new process

worked when implemented.

Each member of staff took a

turn at trialling the new process

and from these trials the best

process adopted. These were

documented on a ‘Desk Top

Instruction’ which detailed the

activity for each stage to ensure

10


How you think it is... How it really is... How you would

like it to be...

Operation Delay Inspection Storage Decision

consistency of process together

with the key points for Health &

Safety, Quality and

Environment.

To support the process every

repair station was configured to

ensure that the operators had

all the assets, spares and tools

required for each stage. Where

possible the layout for each

station was standardised,

allowing as seamless as

possible movement of staff

through each of the stages.

Accurate Bills of Materials

together with timely delivery of

materials are key to the

successful implementation of

flow lines and these have been

well supported in Light

Weapons by the introduction of

ERP and Baan.

The excellent results from the

SA80 modification programme

provided the stimulus to

continue the processes onto the

main SA80 programme. Since

the introduction of the flow line,

the team has seen significant

improvements with throughput

time for each weapon dropping

from ten days to four days and

the available capacity more

than doubling. The floor space

created by introducing flow and

reducing WiP has allowed for

the relocation of the Rarden

Cannon overhaul into the

building from another area.

Donnington is currently

introducing flow lines on its

General Purpose Machine Gun

programme.

Tony Owen, said “Using Light

Weapons as the benchmark we

have implemented the same

principles on the A-Vehicle strip

process, which has also

produced some excellent

results. This process had the

highest number of RIDDORS

on the Donnington site but

these have reduced by more

than 50% since the introduction

of the pulse line.

He added, “We are constantly

striving for excellence and

every problem presented is an

opportunity for improvement.

The changes in Light Weapons

and other areas of the

Donnington business have

enabled us to improve our

score from the initial operational

excellence assessment of 1.1

to a creditable 2.6.”

Improvements to the Light Weapons Facility

11


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Finance workstream


The key objective of the Finance Transformation team

was to establish an efficient finance function, capable of

delivering robust, coherent and responsive financial

management information in support of business delivery

and the DSG wide transformation initiatives and projects.

Financial control and integrity is critical to the ongoing

successful operation of the business and DSG’s ability to

continue to provide the best value for Defence. This will

remain a high priority, going forward, as transformation of


the business continues.

Steve Hall, Finance Director

Transformation successes under the leadership of the Finance workstream:

DART established as the delivery vehicle for transforming DSG.

Sale and merger activities:

Financial accounting and management support provided for the closing down of

DARA and ABRO, the sale of the Rotary Wing and Components business and

the setting up of DSG

Financial Reporting and Control:

Coherent and robust financial performance reporting, financial management and

forecasting principles and processes embedded within the business, including

the quarterly Business Forecast Reviews and also the implementation of a

rationalised and integrated business reporting system

Systems and processes:

Established pan DSG, through a single corporate finance support function and

appropriate financial support in the Business Streams and Support Functions

Risk Management system:

Roll out of single risk management system across DSG, including enhancement

to incorporate the HM Treasury requirements

Internal and External Audit:

Upgrade of the Internal Audit function, resulting in substantial assurance ratings

received each year from the Department of Internal Audit. For the last three

years DSG has had NAO unqualified audits of its Annual Report and Accounts

Insurance:

Year on year savings realised on insurance premiums without sacrificing the level

of insurance cover

Business Optimisation:

Building on the ERP implementation, the Business Optimisation project is well

under way, the stabilisation phase is almost complete and the Optimisation phase

has commenced

12


Enterprise Resource

Planning - Stabilisation

and Optimisation

FOLLOWING THE SUCCESSFUL IMPLEMENTATION OF THE PAN DSG ENTERPRISE

RESOURCE PLANNING (ERP) SYSTEM, A BUSINESS OPTIMISATION TEAM WAS SET UP TO

LOOK AT OPTIMISING PROCESSES AND SYSTEMS, WITH THE AIM OF MAXIMISING THE

RETURN ON INVESTMENT.

The Business Optimisation project

is now well into the stabilisation

phase. Activities are focussing

across five major themes;

Stabilisation of both Business

Streams; Finance Processes;

Commercial Processes and Cross

Business Activities such as Sales

and Operations Planning process.

Here are a few highlights.

The Boardwalks

Graham Sargent, Head of

Business Stream 1 was keen to

see improvements in the shop floor

control, resulting in greater

accuracy of hours booking. One

of the tools used to enable this is

the rollout of the daily Boardwalks

in the Donnington site. This

activity takes place around a

performance board in the

production area, hence the name,

and involves planners, engineers

and production. This now results

in a better understanding of the

problems faced and quick

resolutions to improve the

throughput of work. The team is

now rolling this out across

Business Stream 2.

Improvements for the customer

community

Following ERP implementation,

DSG held a workshop with its Front

Line Command customers in order

to understand the problems they

were experiencing with the new

system, with a view to DSG

addressing and resolving the

issues. Simon Burgess, Business

Optimisation Internal Expert,

worked with the customer to

implement changes to processes,

data and reports and in July two

communication events took place

to educate key users. The

customer community is impressed

with the approach but there is still

further work going on.

Improving Spares Management

A common theme across the DSG

sites is that Baan should be utilised

to improve the management of

spares.

There are many aspects to this

stream of work. The role of the

Material Planner is critical, but was

not previously defined on Baan. A

new role has now been deployed

along with additional reporting

capability. Training in this role took

place in Colchester in July, and

recently in Donnington. There are

many other aspects to the

optimisation of spares

management and here are some

others the team is working on:

Improving data accuracy

Simplifying transactional

processes

Board walk meeting

Enhancing some Baan

screens and reports

Reviewing our material

stocking policies

Putting measures in place

This is an important part of the

business transformation process

as spares shortages cause a lot of

additional work for many functions

and its affect can include late

delivery of vehicles, high levels of

re-planning and utilising donor

parts from other vehicles. In short,

as we improve material availability

we will all feel the benefits.

There is still some way to go and

we all know that the provisioning of

some spares will always be a

challenge - but we are confident

that significant improvements will

be forthcoming.

13


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Commercial workstream


Since joining DSG a year ago, I have directed our focus on putting in place commercial

and procurement processes, supported by appropriate individual delegations, to

enable DSG to build on the relationships with both our customers and industry

partners. We have continued to engage with our key MOD customer and recently

negotiated and signed a Revised Pricing Agreement which gives us much greater

certainty of workload for the next two years. We have also negotiated and signed a

number of new commercial contracts, directly with industry partners, covering key

programmes, including Warrior and CVR(T) theatre upgrades and for the assembly of

the vehicle pod for the new Foxhound platform. Going forward

we will continue to review our commercial activity and practices,

to ensure they continue to support the ongoing business

requirements and take account of the implications of the

proposed sale of DSG. This will be particularly important

when agreeing new contracts and terms and conditions,

as we will need to focus more closely on our customers, whilst


instigating tighter controls on commercial activity.

David Morgan, Commercial Director

Transformation successes under the leadership of the Commercial workstream:

Control of the business:

Implementation of commercial arrangements and contracts at the point of merger to enable DSG to

function as a new entity. The review and withdrawal from non core contracting activity was also

completed. We have concentrated on sales and procurement delegations, establishing a central

register and single point authorisation for all delegations. Tighter controls and business driven

limits have been implemented, whilst optimising the procurement and provisioning activities,

allowing the reduction on the number of GPC cards and Low Value Purchase delegations

Customer communication and Account Management:

Restructure of the commercial function in line with the DSG Business Stream model. Roll out

across DSG of a comprehensive customer review and feedback programme, which provides vital

feedback. Establishment of a Head of Account Management post to enable DSG to concentrate

on the customer aspects of the business

DEMETER:

The successful transfer of the Land Supply activities into DSG has enabled us to grow our provider

and supply chain activities, realising significant benefits for our customers by improving service

delivery and output. During 2010 the contract was expanded to include further procurement posts

transferring into DSG from the Royal Air Force and Defence Equipment & Support

Revised Pricing Agreement:

Implementation of the Revised Pricing agreement, a major change to the way DE&S and DSG

have contracted in the past but provides more transparency to our customers on what we do for

them

Demand Planning:

A demand planning process established, which is reviewed on a monthly basis with the MOD

customer

Commercial policies and processes:

Commercial policies and processes established across the Land and Air businesses, which are

continually reviewed to ensure they meet on going business requirements

Debt Management Principles:

Established and implemented pan DSG

14


Transformation aided

by forecast management

and inventory planning

AIMING TO DELIVER BEST VALUE, DSG’S LAND SUPPLY BUSINESS UNIT (LSBU) IS

CONTINUALLY ASSESSING AND EVALUATING ITS PRACTICES TO ENSURE IT IS AT THE

FOREFRONT AND DELIVERING IMPROVEMENTS ACROSS ALL AREAS OF ITS ACTIVITIES.

LSBU is responsible for

procurement and inventory

management of approximately

300,000 material parts required

to support the land forces

equipment used not only in the

UK but also in operational

theatres. Due to the intense

use of equipment in hostile

environments, there is ongoing

and significant requirement to

repair or replace parts quickly

and efficiently. Andrew Sinclair,

Head of LSBU heads up

management of the critical

items with support from his

multi-skilled team of 250. They

spend more than £300 million

pounds annually on a wide

range of consumables, spare

parts and services and plan

their needs using a forecast

management and inventory

planning software.

Previously, LSBU was using

legacy systems developed by

the MOD for peace time

inventory management

activities. The planning system

paid no attention to future

activity levels and repopulated

every three months using a

simple smoothing algorithm

based on 36 months of history.

In one instance, a particular

vehicle fleet was increased from

200 to 400 vehicles. The

backward-looking existing

system did not increase

forecasted demand, so LSBU

fell into significant back-orders

and arrears, resulting in vehicles

not being maintained to theatre

entry standard.

Andrew decided to enable his

team to excel in delivering and

meeting customer requirements

they needed to transform their

working method to ensure that

they reduced lead times for

parts and react swiftly to the

ever changing operational

demand.

Andrew wanted to use a system

that meets three requirements.

The first requirement was that

the system is able to react more

expediently to changes in

demand history and either

increase or decrease suggested

requirements to meet the

expected demand, based on

systematic, systems driven

analysis of historical demand.

The second requirement was to

determine patterns in demand

history that would enable

smoothing of requirements,

allowing the supply chain to

improve its delivery

performance through more

sensible production and

purchasing schedules and the

third requirement was that the

system should allow the

development of estimates of

future planned levels of activity

at a platform level - vehicle type,

for example - in order to

anticipate increases, as well as

decreases, in demand. This

would allow sufficient time to

modify stockholdings to ensure

the necessary levels of

inventory are available primarily

to satisfy fighting requirements,

but also training fleet needs.

Having experienced in a

previous role a forecast

management and inventory

planning system, Andrew

invested in the new system,

which enables monthly forecast

updates and generates a weekly

optimal inventory vendor

schedule.

Andrew said, “I have introduced

demand segmentation based on

the concept of what we call XYZ

analysis. Products are

categorised into Runners,

Repeaters, Strangers and

Aliens based upon the

frequency of use. This allows

us to apply different forecasting

and inventory planning

techniques to the different

demand profiles and deliver

more appropriate forecasts of

future requirements. This

inventory management concept

is now influencing the way the

MOD is looking at and planning

its inventory. Indeed, I have

restructured LSBU using the

same principles to optimise how

we deliver the service to our

customer. Our immediate

availability measure for one

range of equipment being used

in Afghanistan has improved

from below 40% to in excess of

90% and that has all occurred

while activity levels have

significantly increased. The use

of the system is leading to

improved availability of spares,

reductions in inventory holdings,

improvements in forecasting

future activity levels and better

use of LSBU resources, leading

to greater operating efficiencies

within the business unit, and

benefits to the wider MOD and

our suppliers.”

15


www.dsg.mod.uk

HR workstream


Although less obvious to many employees than the

transformation changes taking place elsewhere in DSG,

HR too, has made significant contributions to DSG’s

Transformation Programme. The innovative 2009/10 two

year pay settlement demonstrated DSG’s commitment to

delivering a pay system that was fair and equitable, whilst

remaining within the boundaries of affordability and

Treasury pay guidance. Planned HR initiatives include;

reviewing the Clockwise Time and Attendance system to

ensure DSG is optimising its full capabilities; consulting

with the Trade Unions about introducing a single DSG

Flexible Working Hours agreement and seeking to fully

assimilate LSBU; all against the background of a

mandated pay freeze and reductions in DSG’s


headcount.

Derek Owen, HR Director

Transformation successes under the leadership of the HR workstream:

Harmonisation of the Air and Land pay, grading, terms and conditions:

Air and Land pay, grading, terms and conditions harmonised and a single status workforce

introduced (excluding LSBU, which remained part of the MOD three year pay deal). Clear pay on

progression and promotion rules also introduced, resulting in clarity for employees, in respect of

new salary, when moving up to the next level

Employee Development:

By exploiting the delegations afforded to Trading Funds, we were able to open up the internal

vacancies process, allowing all DSG employees to apply for any internal job vacancies, irrespective

of grade. This demonstrates DSG’s commitment to developing our own people, removing artificial

barriers and helping employees fulfil their potential

A single suite of HR systems:

A single suite of HR systems introduced, including HR management, Time and Attendance and

payroll, including the implementation of a fully managed payroll service

Support for Operations:

HR has been instrumental in ensuring that all DSG employees posted to Camp Bastion in

Afghanistan receive the same allowances as their MOD counterparts. We also persuaded MOD to

change the deployment rules from postings of 6 months, followed by an eighteen month break;

agreeing to twelve month postings, followed by twelve month breaks

Performance Management System:

Introduction across DSG of a mandatory Performance Management system, backed up by a

competence based framework, designed to meet the needs of the business and its employees,

which is also used when selecting applicants for vacancies

HR policies and processes:

Fully harmonised and reviewed HR policies implemented across the business. Updated policies

and processes taking into account the implementation of the single suite of HR systems and the

single shared service centre concept and the transfer of personnel administration and payroll to the

DSG Personnel Centre in Sealand

Information Assurance Maturity Model:

Level 2 achieved and on course to achieve Level 3 by 1 April 2012

16


Strategy workstream


Since its formation, DSG has embarked on a twin strategy to

balance its capacity against volume demand and grow its

capability to meet the evolving needs of the defence customer.

This transformation will continue to see DSG deepening and

broadening its role as a key End to End provider across the


Land Sector.

Keith Norris, Strategy Director

Transformation successes under the leadership of the Strategy workstream:

DART established as the delivery agenda for transforming DSG

The 2009 Capacity and Capability Review:

Highlighted the volume and programme challenges DSG faced within the evolving defence support

environment and identified how DSG could work with the customer community to address them

Establishment of the Customer Advisory Board (CAB):

Chaired by Director Land Equipment and attended by the DSG Board and representatives of DSG

customer base. The CAB focuses on future DSG workload in order to help maximise DSG’s value

to defence

The creation of a Revised Pricing Agreement:

The agreement ensures DSG’s customer has access to sustained core capabilities and DSG

shapes its resources against future customer demand

2010 Capacity & Capability Optimisation Plan (C2OP):

The plan to align DSG capacity against declining customer demand whilst maintaining core

capabilities

Strategic Business Development:

Established DSG as the deployed prime support provider in Camp Bastion and development

of a planning cell in support of PJHQ

Successful transfer of the vehicle support and engineering material activity at Ashchurch,

Longmoor, Catterick and Warminster and management of the Ashchurch Contingency Fleet

Delivery of a spares inclusive asset availability for the OTEP and Reinforcing Fleets

Secured a role for DSG in the Assembly, Integration and Test (AIT) of:

Foxhound Light Protected Patrol Vehicle with Force Protection Europe

Selected as the UK AIT sub contractor of:

Warrior Capability Sustainment Programme with Lockheed Martin

Future Scout with General Dynamics (UK)

Established DSG as the interim Protected Patrol Vehicle (PPV) support provider

The next phase of the journey:

Extension of asset availability to additional components of the Army Training Fleet

Optimisation of fleet management across the Operational, Training, Regeneration and Contingency

Fleets

Working with HQLF to support the Agile Support Portfolio and establishing the DSG/REME

Protocol to maximise the synergies between us

Establishment of a New Commercial Model across the customer base sufficient to provide a

business planning horizon

Inward transfer of small arms storage to maximise synergy and extend asset availability to the

provision of small arms support

Establish ourselves as the prime support provider for PPV

Delivery of AIT in support of: Warrior, Scout, Foxhound Tranche 2

Creating a sustainable support capability irrespective of public or private ownership

17


www.dsg.mod.uk

Where is DSG today?

SINCE ITS FORMATION JUST OVER THREE YEARS AGO, DSG HAS ACHIEVED SIGNIFICANT

TRANSFORMATION ACROSS THE BUSINESS. WHILST DSG NEEDS TO MEET ITS TARGETS, THERE

IS NO END DATE FOR TRANSFORMATION; IT IS AN ONGOING ACTIVITY, WITH REQUIREMENTS

CONTINUING TO EVOLVE TO MEET THE CHANGING PRIORITIES OF THE OWNER, CUSTOMERS AND

THE WIDER IMPLICATIONS OF THE STRATEGIC DEFENCE AND SECURITY REVIEW (SDSR) AND

DEFENCE REFORM.

Successful delivery of the transformation plan is critical for DSG, not only to demonstrate it provides best

overall value to defence but also to ensure it is best placed to tackle the challenges and take advantage of

future opportunities.

The Transformation Steering Group (TSG) continues with on-going decision making, providing direction and

support to the various projects and business initiatives within the four main categories as shown below. For

now, the focus is on Optimisation and Transition.

CHANGE BOARD

TRANSFORMATION STEERING GROUP

Business As Usual

Business Lead

In Progress

Future Developments

Time & Attendance

Operational Excellence

Staff Reductions

Capability Growth Programme

Review of GFE/GFA

- (Government Furnished Equip)

- (Government Furnished Assets)

ERP

S&OP

Business Optimisation

Integrated Business Reporting

- Enhancement of existing

capabilities

- Exploitation of:

- Integrated Equipment Support

Programme

- Whole Force Concept

Implement A/c Man Structure

Supply Chain

- Agile Support Portfolio

- Global Equipment Manager

CS People Survey

D2D – Vehicles/Light Weapons

JAMES

Revised Pricing Agreement

- Whole Fleet Management

New Commercial Model

Sale

TSG Involvement

TSG Involvement

TSG Involvement

TSG Involvement

Nil – Is aware of

Low – Reviews Progress

High – Direct & Review

High – Planning & Strategy

Business as Usual

Little TSG involvement, aware of progress.

Business Lead

Progress and benefits realisation reviewed by the TSG.

In Progress

The TSG reviews progress and provides support and direction as required to projects and initiatives for

implementation or roll out.

Future Developments

The TSG provides strategic direction and input into the planning and delivery process of strategic initiatives

under development.

18


Growing capabilities -

transforming to

support defence

THE TRANSFORMATION

PROGRAMME HAS

ENABLED DSG TO

DEMONSTRATE

SIGNIFICANT BENEFITS TO

ITS CUSTOMERS AND TO

WIDER DEFENCE.

BENEFITS INCLUDE

REDUCED COSTS,

IMPROVED EFFICIENCY

AND BETTER OPERATING

FACILITIES, WHICH

COMPARE FAVOURABLY

WITH INDUSTRY. THIS

TRACK RECORD OF

SUCCESS UNDERPINS OUR

ASPIRATIONS TO CREATE

AN ENDURING DSG

BUSINESS, PROVIDING

CONFIDENCE WITHIN MOD

AND INDUSTRY THAT IT

CAN DELIVER.

The post Strategic Defence and

Security Review (SDSR)

environment is still uncertain and

much press speculation exists

about the future of UK defence.

However, whilst there remains a

military fleet, there remains a fleet

to support and manage and DSG

is well placed to take on the key

role in this evolving environment.

Since its formation on 1 April

2008, DSG has re-established

itself with the defence customer

and industry community as a

provider of assured on-shore

support to MOD equipments, both

on operations and in support of

training fleets in the UK and

overseas.

The MOD not only wants to

maintain many of the capabilities

that DSG delivers so well but it

also wants to grow them to ensure

it has enduring access to those

critical assured onshore

capabilities during peacetime and

most critically supporting

deployed operations and Urgent

Operational Requirements.

In the last 3 years DSG has

expanded its capabilities in areas

such as Land Supply, Assembly,

Integration and Test, Vehicle

storage inspection and receipt as

well as Deployed Support. This

enabled DSG to build a portfolio

of capabilities particularly in the

Land environment that span the

end to end support lifecycle of

military equipment and platforms.

This makes DSG uniquely

capable to exploit the through life

support of defence kit as the

future fleet support manager.

DSG Capabilities as at 2011

Land Environments

Fleet Concepts

Operational

Training

Contingency

Regeneration

Assembly

Integration

& Test

Receipt

Inspection/

Fielding

Storage

Spares Provisioning/Procurement/

Inventory Management

MRO &

Upgrade

Land District

Load – incl OTEP

LTF(W), RF

Receipt/

Inspection

Storage

Spares Provisioning/Procurement/

Inventory Management

Disposal

Deployed

Deployed Support

Support

End to End support to the Land Fleet

19


www.dsg.mod.uk

Growing capabilities -

The Reinforcing Fleet

IN 2009 COMMANDER FIELD

ARMY HEADQUARTERS

LAND FORCES (HQLF),

IDENTIFIED THAT THERE

WERE ISSUES WITH THE

WAY THE ARMY WAS

MANAGING ITS VEHICLE

FLEETS.

There were too many time

consuming equipment

handovers to and from different

sources at variable standards, a

lack of oversight, assurance

and forward planning. This

encouraged multiple unofficial

handovers, led to a lack of

confidence in the quality of

vehicles received and

encouraged units to retain

equipment when they did not

need it for training. To address

this, HQLF devised a better

solution – the use of

Reinforcing Fleets. The

initiative aims to provide the

Field Army with equipment for

collective training when they

need it, in the right place, at the

right time and in the right

configuration. It has developed

into a significant partnering

agreement between HQLF and

DSG, demonstrating what is

achievable through the

controlled management of a

dedicated training fleet.

Panther

Challenger 2

The Reinforcing Fleet is a

centrally managed pool of

mixed A and B vehicle

platforms and currently consists

of 116 armoured platforms

Challenger 2 (CR2), Warrior,

CVR(T), Bulldog and Panther

and 303 support platforms.

The Reinforcing Fleet is added

to the Basic Unit Fleets to

enable both dry training and live

firing at sub-unit level. On

handover to the Field Army, all

platforms are at a known and

agreed capability and are at the

highest possible standard,

delivered with, serviceable

Complete Equipment

Schedules, Bowman

communications equipment and

no outstanding scheduled

maintenance. When the fleet

is not in use, DSG acts as the

custodian and prepares and

maintains it ready for the next

issue. Equipment Directorate

HQLF decide which units are to

be allocated the equipment as a

part of their unit training cycle

and then place a demand on

DSG to provide the equipment.

20


During the planning phase a

team from DSG visits the unit to

discuss and plan the hand over,

maintain the platform and

conduct the necessary

integration to meet the due date.

The Joint Asset Management

and Engineering Solutions

(JAMES) is used to manage the

fleet and unit transfers. JAMES

is the MOD's computerised

vehicle and equipment

management information

system which enables visibility

of availability, serviceability and

usage by all parties.

Detailed planning is conducted

four months out and then refined

every month prior to delivery. A

dedicated DSG project office

provides oversight and control

over the entire fleet irrespective

of location. The Land District

Load provides the contracting

route, allowing Land Forces the

flexibility and agility to direct

DSG. Initial evidence suggests

an effective reduction in costs as

well as a better managed fleet

with less maintenance and fewer

repairs carried out.

Following a series of Land

Forces and ES Branch, HQ 3

Div UK planning conferences,

the concept was put into

practice in January 2011. DSG

Bovington delivered in good

order thirteen armoured

platforms, complete to Complete

Equipment Schedule and fully

Bowmanised to the Royal

Dragoon Guards (RDG) in

Catterick Garrison. After

completing their collective

training in July 2011, RDG

handed back the platforms to

DSG at Castle Martin ranges.

The confidence that RDG have

gained from their use of the

Reinforcing Fleet has led them

to request a reduction in their

unit holding of CR2 to four

vehicles. The second issue of

the fleet occurred in mid

September, with the issue of

Reinforcing Fleet vehicles

consisting of approximately fifty

A and B vehicles to 1 Mech

Brigade.

Warrior

MAN Truck

Feedback on the first hand over indicated that it had been a great

success.

“DSG has definitely kept its part of the bargain. They have been

quick to make up deficiencies and have fixed every problem. They

have been proactive and helpful and know their stuff.”

SO2 G3 Eqpt ES Branch, HQ 3 Div

“This is the best equipment I have ever seen in the Army.”

REME Craftsman, RDG Light Aid Detachment

“This is what good looks like.”

Senior Land Forces Officer

Building on the experience gained, HQLF intend to expand the

Reinforcing Fleet concept to provide a source of training platforms

to the Territorial Army, University Officer Training Corps and cadet

forces, based on Vehicle Training Fleets (VTF) North and South.

The success of the Reinforcing Fleet is an example of DSG’s

ability to deliver customer focused support solutions and

demonstrates the importance of DSG in the service delivery of

wider fleet management support to the Land Fleet Requirement.

All images © Copyright MOD

21


www.dsg.mod.uk

DEMETER

Growing capabilities -

past, present and

future

Under project DEMETER, the

successful transfer of the Land

Supply Business Unit (LSBU)

proves that DSG can take on and

deliver broader Defence

Equipment & Support provider

activities, ensure continuity of

defence outputs and deliver

significant benefits and increased

efficiency. DSG has further

developed the LSBU role with the

introduction of improved

forecasting tools. In addition,

LSBU now delivers the

management of repairables for

DE&S’ Protected Mobility Team

and is in the process of taking on

further transactional provider

activities from DE&S General

Support Group. MOD and

industry recognise LSBU’s vital

support to front line operations

and improvement in spares

availability.

Logistic Commodities and

Services Vehicle Activity

On 1 October 2011, DSG

became responsible for the Full

Operating Capability of the

former DSDA vehicle activity at

Ashchurch, Longmoor, Catterick

and Warminster. The transfer of

MOD’s vehicle and engineering

material support functions under

the DSDA to DSG project has

seen a further key fleet

management capability

transferring into DSG, enabling

the development of an end to

end management process for

military fleets. With DSG

managers responsible for the

operation of the Ashchurch site,

successful delivery includes

improved output delivery from

75% to 95%, whilst maintaining

Urgent Operational Requirement

output at 100% and the improved

fielding of MAN SV equipment

and vehicle disposals, with

backlog significantly reduced.

Land Fleet Requirement

(LFR)

Working closely with Head

Quarters Land Forces (HQLF),

DSG has developed its support

solution for the training fleets by

providing availability based fleet

management arrangements for

the Reinforcing Fleets. The

arrangement builds on the

success of the traditional Land

District Load support to the

Operational Training Equipment

Pool (OTEP) fleet in Warminster

where DSG, including LSBU,

instrumentally helped to improve

fleet availability from 26% in

November 2010 to 77% as of

May 2011. DSG’s resource is

now being utilised to improve

availability at the Leconfield

Driver Training School.

DSG is now working jointly with

the DE&S and HQLF to develop

a more integrated equipment

support solution to force down

the costs of support and to

significantly drive up vehicle

availability.

Whole Force Concept and

Agile Support Portfolio

DSG is currently working with

HQLF in contributing to the

Whole Fleet Concept (WFC)

work. Director General Logistics

Support & Equipment (DGLS&E)

is leading on the first pilot project,

which will study the capabilities

of the REME Force Support

Battalions and consider how

DSG could provide capability in a

more effective and efficient

manner, including the innovative

use of DSG staff supporting

REME. DSG’s relationship with

REME also includes the

mentoring of soldiers as they

train on the OTEP vehicles during

their training cycle.

Deployed Support

DSG has been intimately involved

in the development of the

Equipment Sustainability System

(ESS) since its inception in 2006

and is now the Lead Support

Provider. The original concept

was to regenerate vehicle

platforms in theatre, however,

timely delivery of DSG expertise

has allowed ESS to broaden its

mandate to include activities

where current support solutions

are ineffective in theatre, such as

repair and screening of Base

Protection ISTAR systems and

support to specific Defence

Equipment & Support projects

such as Support Vehicle uparmouring.

ES Materiel pose a

constant challenge to output,

however DSG’s LSBU has

developed innovative solutions

using existing data streams and

modern forecasting tools to

develop smart Bills of Materials,

enabling correct spares delivery

when needed. Having

successfully demonstrated its

ability in managing parts of the

ESS project, at Permanent Joint

Headquarters’ request DSG is

now providing the UK-based

support team to ESS, almost

acting as a Defence Equipment &

Support Project or Delivery team

in planning, designing and

delivering support solutions for

new equipment as it deploys to

Afghanistan.

Evolving DSG Fleet Support

The broadening of DSG’s

capabilities and development of

its role within the LFR is creating

opportunities in establishing DSG

as the Strategic Support Supplier

22


(SSS) for Combat and Support

Vehicles, offering delivery of

benefits, improved coherence

and efficiency, reduced

interfaces.

Initial investigations by DSG with

commercial Fleet Management

expertise suggest there is no

obvious civil sector comparator to

the complex Combat and

Support Vehicle and associated

sub-systems for the SSS

requirement. Through both

horizontal and vertical

integration, with the exception of

spares ownership, DSG

possesses the necessary

infrastructure and is probably

best placed to fulfil the SSS role.

The transfer of further provider

skills sets from DE&S will bolster

DSG capabilities but there is a

need to buy-in or acquire

additional intellectual capital

through forging closer links with

Original Equipment

Manufacturers and Design

Authorities. DSG’s unique

position means that there is no

shortage of offers of support

from industry.

Potential for Integrated Equipment Support

DSG, Project

Teams, LCS,

Industry

Provisioning

DSG,

Industry,

Field Army

MRO

Industry, LCS Services

Fragmented Supplier Mgmt

Fragmented Equipment Mgmt

Fleet Mgmt

Project

Teams, DSG,

HQLF, JSC/LCS

Storage

Distribution

Inventory

Mgmt

‘As Is’ Land Support

Environment -

many suppliers, no GEM

Industry, JSC/LCS

Services, RLC

Project

Teams, DSG,

Industry, LCS

‘To Be’ Land Support

Environment - “Strategic

Support Supplier” & GEM

Strategic Support Supplier

Sale

Not withstanding the MOD’s

decision to sell DSG within the

Comprehensive Spending review

period, DSG remains a key

support supplier for UK defence.

DSG’s transformation journey will

continue to shape it and ensure

that it continues to provide best

value support to defence and its

industry partners. If and when

DSG is sold the legacy of

transformation is instrumental in

creating a long term future for

DSG regardless of ownership.

Future

We can all be proud of what we

have achieved so far but our

transformation programme is not

complete, there is of course

more to come. We need to

optimise the air and land

businesses to reflect prevailing

workload requirements and future

MOD strategy. We need to

exploit synergies, remove

duplication and transfer best

practice across the organisation,

optimise our support functions

from estates to business systems

infrastructure.

We need to focus on enhancing

our existing capabilities to

support the development of the

Land customer Integrated

Equipment Support Programme

as well as other customer

initiatives such as the Defence

Support Review and the Whole

Fleet Concept. These are huge

undertakings and we can only

succeed if we continue the

momentum in delivering

improvements across the

business whilst driving down

costs, maintaining efficiency and

providing best value for money

for defence and wider

government.

With your continued and

unquestionable commitment

we will deliver and excel.

23

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