A framework for performance based logistics: A system of systems approach

Nowicki, David R.; Randall, Wesley S.; Gorod, Alex

doi:10.1109/icumt.2010.5676562

Cited by 9 publications

(27 citation statements)

References 41 publications

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“…A pure PBL contract could be exemplified by a system owned by the supplier during its lifecycle and where the contract only stipulates the performance that should be reached and maintained. The implicit assumption of PBL is that when the producer is given the responsibility to deliver a certain performance level and the freedom to design the product and production process accordingly, the cost will decrease (Nowicki et al, 2010). A more efficient process will result in advantages that can be shared by the supplier and the customer.…”

Section: Introductionmentioning

confidence: 99%

“…Directed toward logistic support for systems such as aircrafts, vessels and vehicles (Doerr et al, 2004), PBL has recently become the primary approach for defense acquisition in the USA (Kleeman et al, 2012). Despite its usage, defining PBL has been hard (Geary and Vitasek, 2008), since all PBL-agreements must be customized to meet the system's specific operational demands (Sols et al, 2007;Nowicki et al, 2010). PBL is commonly mistaken as outsourcing of logistic support to commercial suppliers, known as contractor logistics support (CLS).…”

Section: Introductionmentioning

confidence: 99%

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Performance-based logistics – an illusive panacea or a concept for the future?

Holmbom

Bergquist

Vanhatalo

2014

Journal of Manufacturing Technology Management

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Purpose – The purpose of this paper is to summarize previously reported benefits, drawbacks and important aspects for implementation of performance-based logistics (PBL), and to identify knowledge gaps. Design/methodology/approach – This is a literature review based on 101 articles. The reviewed articles are relevant to PBL in particular, but also to performance contracting, product-service systems (PSS) and servitization in general. The research method involved database searches, filtering results and reviewing publications. Findings – PBL is a business concept that aims to reduce the customer's total costs for capital-intensive products and increase the supplier's profit. The design of the contract, performance measurements and payment models are important aspects for successful implementation. However, the authors find a reason for concern to be the lack of empirical evidence of the profitability of PBL for the customer and the supplier. Originality/value – This literature review of PBL also includes publications from the related research areas: performance contracting, PSS and servitization. Developing PBL can benefit from results in these research areas.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Performance-based logistics – an illusive panacea or a concept for the future?

Holmbom

Bergquist

Vanhatalo

2014

Journal of Manufacturing Technology Management

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“…These results could imply that regional supply networks are self-organising complex networks, or in other words, systems of systems [25]. As it is has been shown from insights into the mining industry supply network, these structural patterns are functionally related to its operational characteristics as robustness, responsiveness, flexibility, and resilience.…”

Section: B Analysis and Resultsmentioning

confidence: 84%

Self-organising supply networks: A case study of the SA mining industry

Statsenko

Ireland

Gorod

2016

2016 11th System of Systems Engineering Conference (SoSE)

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“…Selecting such variables is challenging since customer requirements are often defined in quite abstract terms [15,16]. Usually several performance variables are used in a PBL contract, e.g availability, reliability, maintainability, supportability, logistics response time, logistic footprint and cost of usage [8][9][10][11].…”

Section: Measurements Of Efficiencymentioning

confidence: 99%

“…A disadvantage of implementing PBL partially, i.e. not to a whole system, may be that opportunities for economies of scale might be lost, [10]. Furthermore, defining performance measurements can be complicated if the supplier is only responsible for the performance of a part of the complete system, see [11] for a discussion.…”

Section: Introductionmentioning

confidence: 99%

Using Monte Carlo simulation as support for decision making while negotiating a PBL contract

Block¹,

Ahmadi²,

Tyrberg³

2014

2014 IEEE Aerospace Conference

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In connection with performance-based logistics (PBL) contracts for aircraft fleets it is very important to carefully analyse both operations and maintenance before and during the contract negotiation phase. Monte Carlo Simulation is a valuable methodology in this context since it allows delimiting and exploring a complex parameter space in a transparent and relatively easily visualized manner. With timely analyses it is possible to identify both technical and economic risks and minimize the possible consequences, a process that benefits both parties in the negotiation process. This paper describes a part of this process in connection with the negotiation of a PBL contract for the Swedish Air Force SAAB 105 (SK 60) trainer fleet between Saab AB and the Swedish Defence Materiel Administration (FMV). The information used in the simulations was largely empirical data derived from previous operations of the aircraft system. The main factors that were simulated were operational requirements, fleet size, spares inventories, turn-around times, failure rates and influence of extraneous factors (e. g. weather). The simulations resulted in considerable savings due to reduction of the active fleet size, and increased reclamation of surplus spares and units from retired aircraft.

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A framework for performance based logistics: A system of systems approach

Cited by 9 publications

References 41 publications

Performance-based logistics – an illusive panacea or a concept for the future?

Performance-based logistics – an illusive panacea or a concept for the future?

Self-organising supply networks: A case study of the SA mining industry

Using Monte Carlo simulation as support for decision making while negotiating a PBL contract

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