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Contents Preface iii Figure and Tables ix Summary xi Acknowledgments xv Abbreviations and Acronyms xvii CHAPTER ONE Introduction 1 AFPEO/CM Office and Responsibilities 4 AFPEO/CM Metrics 5 Research Approach 6 Preview of Findings 8 Organization of the Report 9 CHAPTER TWO Commercial Strategies for Service Procurement 11 Developing Purchasing Strategies 13 Strategies and Commodity Councils 15 CHAPTER THREE Commercial Firms' Use of Metrics to Manage Service Procurements 19 Results-Oriented Metrics 20 Cost 20 Quality 25 Supplier Satisfaction 27 New Initiatives 29 Special Interest 30 Internal Management Metrics 30 Internal Customer Satisfaction 31 Personnel Training and Retention 33 Ethics Violations 34 Metrics Baseline Data 34 Reporting Metrics to High-Level Corporate Management 35 CHAPTER FOUR Recommendations for the Air Force 37 Metrics 38 Cost 38 Quality 42 Supplier Satisfaction 44 Initiatives and New Policies 45 Special Interest 47 Internal Management 49 Overarching Data Issue 49 Management Approach 50 Commodity Councils 50 Leadership and Incentives 53 Link to Metrics Portfolio 54 Summary 54 APPENDIX Interview Questions 55 References 65 Figure and Tables Figure 2.1. Linkage Between Corporate Objectives and Purchasing Strategies 14 Tables S.1. Proposed Portfolio of Metrics for the AFPEO/CM xiv 3.1. Cost Metrics 21 3.2. Illustrative Example of Calculating Cost Changes Relative to Indices 22 3.3. Quality Metrics 25 3.4. Supplier Satisfaction Metrics 27 3.5. Illustrative Initiative Metrics 29 3.6. Special Interest Metrics 30 3.7. Internal Management Metrics 31 4.1. Proposed Portfolio of Metrics for the AFPEO/CM 39
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