Chapter Six - Defence Materiel Organisation > Materiel Reform > page 2 of 3
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Materiel Reform

Driving Change - Six Key Themes

Materiel reform within the DMO was restructured in 2004 by the CEO DMO to reflect six key themes to drive change and ensure the DMO achieves its vision of becoming the premier program management and engineering services organisation in Australia. These themes are:

  • Professionalise our workforce.
  • Reprioritise work so that effort is concentrated on the high-priority activities.
  • Standardise systems and work practices to ensure staff work efficiently and effectively.
  • Benchmark the DMO against the best Australian and international organisations of similar scale and scope.
  • Improve industry relations so they are more mature, share risks and avoid duplication of costs.
  • Lead reform in Defence by developing and implementing successful reform in the DMO, which may facilitate change in Defence.

Within these themes a number of specific initiatives have been developed. Detailed below are the major outcomes completed during 2004-05 in delivering against the six themes.

  • An interim certification system has been established for the Program Managers' Certification Framework. The framework will certify project directors and managers against clear professional standards, as well as providing professional development opportunities that will be sustained through structured career management. The certification system is expected to be fully operational by December 2006.
  • DMO Workforce and People Plans were released in April 2005. Military Workforce Agreements, which deal with all key aspects of the relationship between DMO and the Services regarding military workforce, have been endorsed for the period 1 July 2005 to 30 June 2006.
  • The new Business Acumen Training program has been developed, with delivery to commence in August 2005. The program will provide insight into the way defence industry operates and the business drivers that influence industry. DMO intends to train over 3,000 of its staff by end 2008 in commercial practices.
  • Work on designing the new DMO leadership training program commenced in June 2005. The design is targeted for completion in the coming months with the pilot courses to commence in late 2005. The program is intended to deepen the succession pool of officers at the senior executive level.
  • The DMO Quality Management System was implemented. This is a central repository for DMO's standard business processes, procedures, policies, guidance, tools and templates to assist staff to fulfil duties.
  • Monthly reporting on acquisition projects to the Minister and the Defence Committee has been revised, and DMO reporting on the sustainment of ADF capability was introduced in April 2005.
  • All reporting on acquisition and sustainment includes a 'Maturity Score', which communicates and benchmarks the level of risk in capital investment projects as they progress through the capability life cycle and issues that may impact upon the ongoing sustainability of capabilities currently in-service.
  • The DMO has made significant changes to the Australian Defence Contracting templates and manual for guiding complex acquisitions of equipment and supplies. Following on from this work, the Procurement Improvement Program was initiated, which represents a strategic review and revision of all procurement and contracting policies, practices, templates, guidance and associated training material. The templates will continue to be used until the outcome of the Procurement Improvement Program is released in early 2006, reflecting commercial best practice and providing streamlined user-friendly documentation and templates.
  • The DMO reviewed communication with key stakeholders to achieve best practice, and put in place a range of activities to support key business outcomes. These include: a revamp of the DMO's internet site; the introduction of an on-line newsletter targeting industry groups; improved internal communication processes flowing from a review of the intranet and other communication vehicles; and an enhanced corporate presence at major events such as the Avalon Air Show and the Defence and Industry Conference.
  • The Minister for Defence announced in June 2005 that the first two companies to receive funding under the Skilling Australia's Defence Industry program will be ADI Ltd and Austal Ships of Australia. The level of Government investment through the program is being matched by both companies and will provide skills in a number of areas, including integrated logistics support, fabrication, welding, hydraulics and pneumatics and project management. Proposals from other companies covering this and other sectors with critical shortages have also been sought and are under current consideration.
  • The DMO launched a revitalised Defence and Industry Study Course in April 2005. The course is a unique national program of seminars and visits that aims to enhance mutual understanding between Defence and the business community in a manner that can contribute to higher quality outcomes for both. The course was originally designed in the 1950s in response to industry and defence communication problems during the Second World War. It seeks to create and maintain business and personal networks that can be used in times of rapid ADF mobilisation or expansion.
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