|
Supplying Principles and Practices > USPS Supplying Practices Process Step 2: Evaluate Sources > Develop Life Cycle Support Plan
Develop Life Cycle Support Plan
Typically, life cycle support plans are used when the Postal Service
purchases products, not services, with the life cycle spanning the time from
product conception to product retirement, with more than 80 percent of the
total cost of ownership being in the postpurchase phases. The life cycle
support plan is a component of the purchase plan, and is a dynamic
document that guides the project throughout its entire duration and is revised
as more detailed information becomes available. The Purchase/SCM Team
determines which products call for the development of a life cycle support
plan. It is essential to note that a life cycle support plan is not appropriate to
all purchases, but should be developed for products of considerable nature,
scope, and complexity (e.g., for high value and high complex products).
Whether such a product is purchased from a supplier or made by the Postal
Service, during its life cycle development, quality, cost, schedule, and user
requirements must be considered at all phases. What follows is a
comprehensive view of a life cycle support plan, but the plan developed by
the Purchase/SCM Team should reflect the complexity of the particular
purchase being considered.
A life cycle support plan clarifies the project lifespan of the product. An
effective life cycle support plan enables the Postal Service to reduce
complexity and decrease life cycle costs and allows for the focusing of all
efforts toward providing best value to the Client. The plan is instrumental in
the development of the statement of objectives (SOO), statement of work
(SOW), specification, or product description, and, if applicable, the Decision
Analysis Report (DAR). The life cycle support plan serves as a guide to the
future and a record of the past.
At this stage in the Develop Sourcing Strategy task of Process Step 2:
Evaluate Sources, the Client's strategy, and how best to meet this strategy,
are nearly defined. The elements to support the product are defined; the
organizations that participate in the life cycle process is identified; and the life
cycle phases of the specific product or service are known and in the process
of being defined.
The three critical components needed to develop the life cycle support plan
are:
• Component categories and supporting elements
• Life Cycle Management Team
• Life cycle phases
The life cycle support plan developed by the Purchase/SCM Team will be
implemented in the Implement Life Cycle Support Team topic of the Manage
Demand task of Process Step 5: Measure and Manage Supply.
The component categories and their supporting elements make up a
product's life cycle, and they must be defined to develop a support plan. This
includes identifying:
• The component services and information that the user needs to
maintain the product, beyond the hardware and software itself
• Operator skills required to use and service the product
• The combination of skills, tools, documentation, test equipment,
and repair parts to maintain the product
The Life Cycle Management Team is a cross-functional team (comprising
members of the Purchase/SCM Team and members of the areas appropriate
to the product) that supports the development of the life cycle support plan.
The Life Cycle Management Team must be identified in all phases to support
the effort and development of the support plan. The team consists of the
Client and about 5-10 members and typically includes:
• Market Analysts
• Pricing Analysts
• Item Managers
• Individuals from Quality Assurance, Finance, Sales, Supply
Management, and Engineering (whose functions include
hardware/software design, configuration management,
maintenance, acceptance and performance testing, and process
development)
Degrees of management and responsibility for the plan will transfer to these
different members, depending upon the phase of the process.
The life of a product can comprise various life cycle phases. To develop a life
cycle support plan, the phases pertaining to the product and each phase's
composite must be determined.
The life cycle plan will be revised throughout the product life cycle, as more
detailed information becomes available. When developing a life cycle support
plan, the following phased structure and composition will be used:
• Concept Development (the life cycle plan is initiated during this
phase)
• Planning and Specification
• Purchase
• Production and Deployment
• Operations (Use) and Support
• Relocation and Disposal
During the Concept Development phase:
• An idea is analyzed for economic and technical feasibility
• Planning is initiated if the idea is determined to be feasible
• Management structure is established to provide program controls
and direction
• Existing products and technology are explored to determine
whether any meet the framework of the idea and could be
implemented in the Postal Service environment
• A plan of actions and milestones is developed
The life cycle support plan at this phase should contain the following
information:
• Statement of need
• System description
• Milestones
• Roles and responsibilities of activities and organizations
• Strategy to achieve objectives and implement training
requirements (including risk mitigation and purchase alternatives)
• Planning and budgeting
• Program interdependencies
• Opportunities for standardization
• Logistics support
• Investment recovery
During the Planning and Specification phase, evaluations are made to see
whether the product is available for purchase. The evaluations compare the
products against the requirement to determine whether they meet the
required performance parameters. The results are used to refine the
requirements, and (if applicable) develop a Decision Analysis Report (DAR).
All technical information obtained during the planning and specification phase
should be evaluated in terms of the life cycle support plan. Updates include
adjustments to the schedules, historical information, and status of the plan.
During the planning phase, the life cycle support plan will be updated to
reflect the purchase plan and DAR.
At this point in the development of the life cycle support plan, the information
included in the following sections of the plan should be updated:
• Statement of need
• System description
• Milestones
• Roles and responsibilities of activities and organizations
• Strategy to achieve objectives and implement training
requirements
• Planning and budgeting
• Program interdependencies
• Opportunities for standardization
• Logistics support
• Purchase plan (new information that is added during this phase)
• Investment recovery
• DAR (new information that is added during this phase)
During the Purchase phase:
• Requirements for the product are determined
• The final request for proposals (RFP) is prepared and issued to
the potential suppliers
• The Proposal Evaluation Team is assembled
• Proposals are received, processed, evaluated, and ranked
• Final negotiations are completed
• Contract is awarded
Following contract award, the life cycle support plan is updated to reflect the
finalized project information. All members of the team developing the life
cycle support plan participate in this effort to update their various parts of the
plan.
Activities in this phase are directed toward achieving an integrated,
well-planned deployment of the product that can be economically and
efficiently supported throughout its life cycle. During this phase, the plan is
revised to reflect actual operational experience.
Detailed maintenance support plans are prepared during the production and
deployment phase. As information becomes available from the testing and
operation of the product, the life cycle plan is validated and revised to reflect
the most effective operation and support. All members of the team
developing the life cycle support plan participate in this effort to ensure an
integrated approach to issue resolution.
The Operations (Use) and Support Phase consists of the collection of data on
the asset's performance; improvements are suggested, made, and managed;
and new operational data are collected. This phase continues until a decision
is made to redeploy or dispose of the product. If the product is modified or
overhauled, life cycle support planning reenters the planning cycle in the
Concept and Development phase, and the plan is updated to include
overhaul or modification schedules. If there are plans to retire or relocate the
asset, the asset's life cycle enters the Relocation and Disposal Planning
phase.
Information gained during the deployment of an asset or from a modification
is analyzed, and required changes are made to the existing plan, specifically
information relating to maintenance, reliability, parts provisioning, and
training. Actual performance data are used to assist in the process and
planning of future purchases. These data are compiled and included to
modify the appropriate sections of the life cycle plan.
As technology changes, a decision is made regarding the disposition of
products at the end of the life cycle. This decision is made based on
economic and operational considerations.
When an asset is replaced by a more cost-effective asset, it may be
determined that it still has operational value and continues to provide a
benefit for service use. In this case, the asset may be relocated to other sites
or be used as a backup; the original support plan will also have to be
considered.
If the decision is made to relocate or continue operation of the asset, the plan
will be revised to reflect any variances in support strategies. Repositioning or
the purchase of spare parts must be considered, as well as additional training
to support operation and maintenance of the relocated product.
Disposal is the final phase of the life cycle and can pose significant economic
and social risk to the Postal Service. Assets, especially physical assets, can
still offer value from resale, selling back to the supplier, or even donation to
social organizations or international postal partners.
The risk arises from several sources, among which are:
• Many assets contain materials that are considered hazardous
and require special steps for approved disposal. The Postal
Service, as the original asset owner, can be sued for improper
disposal of these assets.
• Computer-based assets can contain either information that is of
proprietary value to the Postal Service or privacy information on
Postal Service employees, Clients, and customers. These assets
require special processing to preclude incidental release of this
information.
• Assets seen by the public have the Postal Service name or logo
on them. These symbols must be removed to prevent misuse or
misrepresentation of the Postal Service brand.
• A number of assets now contain devices designed to provide
integrity or security of the mail, Postal Service employees, and
customers. These devices must be removed before disposal.
• Mail processing and other equipment have licensed software
systems that must be removed at the time of disposal.
The Life Cycle Management Team will meet to develop a disposal plan that
will be added to the overarching life cycle plan. There are a number of ways
for the Postal Service to dispose of assets, which are summarized in the
Develop Preliminary Investment Recovery Plan topic of the Develop Sourcing
Strategy task of Process Step 2: Evaluate Sources. When the
Purchase/SCM Team determines when the supplier will manage the
investment recovery, solicitations must include Provision 2-8: Investment
Recovery, under which the supplier must provide, within its response to the
request for proposals (RFP), an investment recovery plan to reuse the
equipment or to eliminate or reduce final disposal costs. Final disposition
must be environmentally responsible; eliminate or reduce landfill; and comply
with all Federal, state, and local laws and regulations. Proposals must
address the complete life cycle, including the final disposition of the items
being purchased. Disposition alternatives include take-back, repair,
refurbishment, and disposal. The supplier is required to design and describe
additional innovative, value-added, end-of-life disposition opportunities for the
items being purchased.
The Postal Service environmental policy, as stated in Handbook AS-550,
Recycling Guide, and Handbook AS-552, Pollution Prevention Guide, must
be incorporated into the life cycle support plan and any other procedures
governing material redistribution, recycling, and disposal.
Start Request for Proposals (RFP) Development topic, Prepare Project task,
Process Step 2: Evaluate Sources
Develop Preliminary Investment Recovery Plan topic, Develop Sourcing
Strategy task, Process Step 2: Evaluate Sources
Provision 2-8: Investment Recovery
|
