Reduce Total Ownership Cost (R-TOC)

1. Reduce Total Ownership Cost(R-TOC) PURPOSE: The R-TOC program is to achieve readiness improvements in systems by improving the reliability of the system or the efficiency of the process to support them.

2. Reduce Total Ownership Cost(R-TOC) Background: A May 1999 memo from the USD/A&T stressed that the purpose of R-TOC was to maintain or improve current readiness while reducing O&S costs. The memo instructed the Services to focus on three general R-TOC approaches. • Reliability, maintainability, and supportability (RM&S) improvements • Reduction of logistics cycle time • Competitive product support. A DoD "Strategy for Affordability" established a 20% O&S cost reduction goal for FY2005.

3. Reduce Total Ownership Cost(R-TOC) CLC Course Course Objective: To provide the DoD workforce with the knowledge, understanding and skills required to implement R-TOC initiatives necessary to improve system readiness and reduce operation and support costs.

4. Reduce Total Ownership Cost(R-TOC) Course Status: 2 April – CDSC provides suggested guidelines to Meridian KSI. 12 April – Meridian e-mails course outline to CDSC. 16 April – CDSC meets with OSD representative to coordinate content of R-TOC with the content of a R-TOC guide to be soon published. 17 April - representatives from CDSC, OSD & Meridian meet to flush out course content requirements. 20 June – Course content provided to Meridian in preparation for storyboard phase. 21 Aug. – Beta Testing 26 Sept. – 10 Oct. Target dates for making the R-TOC course available to DAU students.

5. Reduce Total Ownership Cost(R-TOC) Course Delivery & Content: Delivery – The material is to be delivered in six lessons. The total on line “seat-time” is three hours. On average there are 35 screens for each of the six lessons. Content Overview – Collectively the course provides an orientation to R-TOC requirement, definitions of key concepts, and description of best practices. Course material also consist of a short P.E. at the beginning and end of the course, as well as, a post test with a minimum passing score of 70%.

6. Reduce Total Ownership Cost(R-TOC) Course Content: Lesson 1- R-TOC Course Goals & Objectives: The course emphasizes cost of ownership reduction from a system perspective. Lesson 2- Introduction to RTOC Principles: A presentation of transactional material& an interactive exercise to introduce R-TOC in practice. Review question where appropriate are also included. Lesson 3 – R-TOC Approaches: This module contains management & technical approaches to R-TOC. Two examples, R-TOC Approach for total team integration & improved reliability contribution to R-TOC.

7. Reduce Total Ownership Cost(R-TOC) Course Content (con’t) Lesson 4 – R-TOC Tools: Examples of tools are risk analysis tools, Cost as an independent variable, and metrics that support R-TOC. Lesson 5 – Suggested R-TOC Practices: to include presentations on COTS & NDI, Technology insertion, and managing non-core competencies. Lesson 6 – R-TOC in Practice (Car Buying Exercise): This is revisiting the practical exercise in Lesson 2 to examine the initial their decision in light of new facts, decisions, information, and rationale provide by subsequent lessons.

8. Reduce Total Ownership Cost(R-TOC) Course Maintenance & Relevance: • The CDSC team with work closely with IDA & Meridian representatives to ensure consistency and timeliness between the R-TOC lesson and the R-TOC Guide Book. • The R-TOC lesson developer and other CDSC members will make presentations to and participate in R-TOC Working Group forums to ensure user focus in DAU’s R-TOC lessons. • User representation and involvement in the R-TOC lesson development and implementation process is an ever-present necessity and reality.

9. Reduce Total Ownership Cost(R-TOC) R-TOC POC: Dr. Russell A. Vacante Program Director, Performance Based Logistics, CDSC TEL: 703-805-4864 E-mail: Russ.Vacante@dau.mil