The Defence Logistics Organisation (DLO), now merged with the Defence Procurement Agency to form Defence Equipment and Support, established a Lean Support Continuous Improvement Team (LSCIT) to be the catalysts in delivering benefits by improving the performance of defence support chains. The programme was a joint venture between the DLO, Atos Consulting and Warwick University.

Business Challenges

The DLO’s goal was to achieve significant efficiency targets and reduce its equipment support budget by 20%. The chosen method was to apply Lean principles to defence support chains, working in conjunction with IPTs (business units) and their industrial partners and at the same time to up-skill MoD staff in order to increase capability and manage benefits delivery.

Solutions

Working together as a joint enterprise, the LSCIT and Atos Consulting devised an integrated approach for:

• The recruiting of internal change agents, named Support Solution Specialists and the development of their skills through tailored academic training (leading to an MSc) and on-the-job skills transfer from Atos Consulting in the course of project delivery
• Embedding Lean principles via a range of methodologies that addressed the planning, contracting and physical processes involved with MoD equipment support chains.

Benefits

The LSCIT programme delivered £377 million of cash benefits, exceeded its programme target by 13 months, and achieved a 30:1 return on investment.

In terms of skills transfer and capability development, over 100 people went through the Support Solution Specialists development scheme. Graduates from the scheme have enjoyed a 100% success rate when attempting promotion to the next level.

The quality of the partnership between LSCIT and Atos Consulting was recognised through the award to the programme of three Chief of Defence Logistics commendations, and a Ministry of Defence Procurement award for Excellence in Defence Procurements.