Defence

Defence Materiel Organisation

Making it happen in 2007

Dr Stephen Gumley

The year 2006 was one of great success for the Defence Materiel Organisation (DMO), from the arrival of the C-17 Globemaster and Abrams tanks through to first pass approval and first flight of the Joint Strike Fighter (JSF). The ongoing change agenda that underpinned these successes will remain the key contributor to our success throughout 2007.

This year DMO will spend more than $8 billion, or some 45 per cent of the Defence budget, with more than $5 billion to be spent on acquiring new capabilities. We will manage over 200 major projects, each worth more than $20 million.

From a senior leadership point of view, we will face continuing challenges in stakeholder engagement. I will be taking particular interest in our relationship with Defence industry. This relationship is obviously critical to continuing our mission to equip and sustain Australia’s Defence Force. Working together with our industry counterparts is essential if we are to enjoy ongoing success this year.

HMAS Sirius, a new oiler, was delivered under budget and ahead of schedule thanks to DMO.
Photos provided by DMO

The Government will consider the Industry Policy Review and I expect this to provide momentum for other key initiatives. This will include contracting reforms and maximising opportunities for Australian industry in DMO projects and in product and technology exports. In addressing the people pressures faced by Defence and industry, the ongoing implementation of the Skilling Australia’s Defence Industry (SADI) initiative will continue to be important. Together with a strong national policy framework, these initiatives provide a basis from which DMO and industry can find new and innovative ways of working together.

Our relationship with the broader Defence organisation is also very important to me and will be a focus in 2007. I would like to see further work done on the various agreements that clarify the staffing requirements and costs of services provided between DMO and the Defence Groups. I would like to introduce more meaningful metrics to measure service delivery. This will assist DMO and Defence Groups deliver the services vital to achieve our desired outcomes.

Photographic chase aircraft provided by Central Flying School RAAF Base East Sale; Pilot: FLTLT Martin Keer.
Photo by WO Ray Bennell

To ensure DMO meets its efficiency and effectiveness targets, we must have a sufficient number of skilled staff to support our business. To this end, we will work towards improving the management of the workforce as a whole. Given the recruitment challenges the Australian Defence Force (ADF) is facing, DMO must ensure key skill sets are available throughout the organisation through a combination of ADF and Australian Public Service personnel. Where shortfalls are occurring we must look to the best means possible of filling those vacancies. I am confident that our professionalising agenda, through the DMO Institute, can continue to deliver skills to projects and the organisation. This will further strengthen our position as the leading project management organisation in Australia.

As this edition goes to print we will be hosting the inaugural International Project Management Symposium and the first meeting of the newly-formed College of Complex Project Managers. The College’s initial Fellows include 10 internationally recognised project management leaders. These events strengthen our position as the leading project management organisation in Australia.

DMO plays a pivotal role in Defence acquisition.

Supporting our focus on stakeholder engagement will be a series of ongoing reform initiatives. In the latter part of 2006 DMO’s Executive achieved ISO certification, paving the way for ongoing work to certify all of our corporate-level processes. This will be supported by well-defined and simplified corporate processes and should result in further improvements in productivity. Building on our first full year as a prescribed agency, we are also looking to focus on the implementation of financial, project and knowledge management tools to assist in our work.

Through the many major acquisition and upgrade programs DMO will manage in 2007, we will continue to contribute to the operational effectiveness of the ADF. Prime examples of this capability development are the Air Warfare Destroyers (AWDs) and Amphibious Assault Ships. This year the Government is expected to commit significant funding for both projects, and in the case of the AWDs, to select the preferred design. These projects, along with many other significant procurements or upgrade programs, will continue to give our soldiers, sailors, airmen and airwomen the best and safest equipment available.

Our process of reform is well underway and I expect 2007 to be an outstanding year with some great achievements ahead. I would also like to thank and congratulate the staff of DMO for an exceptional effort in 2006.

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