8 November 2005
DML TAKES PUMP MANAGEMENT CONTRACT
DML, the defence support group, has been awarded the contract for a pump management service for the Royal Navy, the UK Ministry of Defence announced this week.
Under the contract DML, teamed with Weir Engineering Services (WES), will provide guaranteed pump availability to agreed demand levels while demonstrating considerable savings over existing arrangements - estimated by the MoD to represent a 50% saving. Working in partnership with the MoD, DML is to deliver a 10 year total availability service for all pumps in the Marine Auxiliary Systems (MXS) IPT inventory (submarines and surface ships) with maximum cost efficiency, in what is the latest contractor logistics support (CLS) contract to be won by the company following the award earlier this year of the modification and support contract for the 4.5" Mk 8 Mod 1 Gun.
DML is an established lead-contractor to the MoD and WES has considerable experience of managing pump assets on North Sea oil & gas platforms. Central to the success in securing this contract is the experience and expertise the team offers. This includes extensive knowledge of pump systems for military and other demanding environments, plus waterfront experience, logistics expertise, and asset management skills using the latest techniques and systems.
In managing this contract, which brings together a large number of contracts under the current arrangements to a single service provision, the DML team will introduce commercial best practice to in-service support for pumps, with shorter supply lines and decision loops, and visibility throughout the supply chain. Its business model, which is geared for continuous improvement, is well proven in the offshore oil and gas and utilities industries.
"Extensive modelling has and will be applied to predict a set of availability codes, consider spares sufficiency and whole assembly demand over the contract period," DML engineering & support services manager Paul Parnell said: "This modelling enables us to de-risk key areas such as pump availability and develop a comprehensive whole life cost model."
DML says savings will be achieved by reducing the inventory through accurate and reliable asset management, coupled with an engineering programme to improve reliability (at system and component level), and progressive process improvement with smarter working practices.
"Our asset modelling will lead to cost reductions and improved service delivery through maximised pump utilisation," Parnell stated. "Effective management will also contribute to an increase in availability.
"We've made extensive use of modelling to identify opportunities to provide better value for money and improve availability by having the correct stock holding, rationalising unused inventory, and choosing the best value supply chain options. This enables us to balance inventory reduction to minimise capital investment against allowances for supply chain uncertainty, quantity discounts and variations in usage with operational patterns."
The DML team will work to key performance indicators (KPIs) for availability, asset utilisation and cost of ownership, with profit generated entirely through savings. These KPIs will be met and savings achieved through effective tracking, managing and analysis techniques.
DML's comprehensive asset management system (AMS) is fundamental to the contract. This on-line system, operating in real-time and fully accessible at the MoD desktop, is an extension of a current fully MoD-accredited federated system, with links and leverage into all existing Ministry data repositories.
A further key feature is the service centre devoted to pump repair and maintenance, originally established by WES to reduce repair turn round times and drive out potential inefficiencies.
Equally critical are DML's established relationships with suppliers, with OEM commitment to supporting the process secured through appropriate incentivising arrangements.
"The DML Transition Plan demonstrates that the team has the experience and resources to ensure the smooth transition from MoD management to contractor management," the MoD MXS IPT team leader Dan Smith commented. "This will allow us to adopt the role of the decider rather than the provider and ensure that we provide the best possible level of service to the fleet."
In managing this contract, DML will be drawing extensively on its detailed knowledge of pump systems (including installation and commissioning as well as comprehensive overhaul and modification experience), and its experience in managing first level submarine pumps and systems. The team has considerable waterfront experience, and in delivering pump availability in demanding environments, and will also build on its experience in the Submarine Legacy Spares Project.
Commenting on the contract award, the MoD highlighted the facility to 're-engineer' almost any component as "an impressive example of the use of new technology in delivering support". MXS IPT team leader Dan Smith said: "Sophisticated measuring tools enable design information to be generated from any part and in turn machine or cast a replica within days. This offers the potential to resolve obsolescence, circumvent bottlenecks caused by spares shortages, or to introduce more advanced materials with a longer working life."