An application Balanced Scorecards to the Management Strategy of the「To Integrate Depot Level of Maintenance Capability of the Military Support Equipment」：A example research of 「To maintain & calibrate Precise Measurement Equipment 」

By legislation process, the armed forces reorganized its structures in the year of 2000, going from two branches of command and policy to three branches of command, policy, and armament, and it was stated that Army GHQs, Navy GHQs and Air Force GHQs shall be restructured into Army Command, Navy Command and Air Force Command within three years to be led by General Staff Headquarters. One of the purpose is to allocate and to utilize the limited national defense resources in the fullest extent.
In order to maintain the availability of the main weapon systems in the armed forces(such as aircraft, ships, missiles…), the Ministry of National Defense has to project resources(manpower, equipment, money) into maintenance capability. However, different services have its own unique maintenance system. Although the objects to be maintained are different, there are still some maintenance capability which are similar to each other; due to the self-centered ideas among the services and lack of mechanism of resources sharing and exchange, the limited national defense budget is wasted. Based on this insight , this case study research on ways to create resources sharing mechanism to maximize the values of the resources.
The maintenance capabilities of the armed forces varied according to levels and depth, classified as O/L(organization Level), I/L(Intermediate Level), D/L(Depot Level); Among them, D/L needs the most resources and the maintenance skills are the most difficult to maintain, thus it is called “high level capability.” In order to focus the discussion, only Precise Measurement Equipment (PME) is used as examples to explore the effectiveness after integration. “Integration”-involving factors such as strategy, authority changing, and performance is analyzed in three aspects, “strategy”, “organization design”, “performance evaluation and feedback,” using “balance score card” as management strategy to achieving synergy by integration.
From the viewpoint of resources sharing, the existing problems on the and calibration systems of precision measurement equipment before integration are: the failure to share resources among the services, the awaiting integration of information management system, the lengthiness of calibration turnaround, the lack of effective utilization of budget, redundant investment on the same maintenance capabilities, lack of control on outsourced calibration, loss of skilled manpower, etc. The proposed actions taken on the problems are: ensuring integration strategy and structure, establishing regional support operation pattern, restructuring of maintenance and calibration levels, enhancing mobile calibration capability, establishing common information operation platform, reallocation of resources, review outsourced items, setting up PME review committee; In order to achieve strategic objectives, the case is further investigated through the above mentioned aspects, “strategy”, “organization design”, “performance evaluation and feedback.” Plans and teams to study:
“Strategy”-By SWOT analysis on “vertical integration and division”, “horizontal integration and division”, reviewed with “strategy Fit”, “vertical division, horizontal integration” is chosen as the strategy of this case.
“Organization design”-In order to fulfill synergy of integration, regional support operational patterns replace the original independent support pattern within each services . Based on organization design principle, the original organizational authorities are changed to enable the regional capabilities to be used by the units of different services within the region.
“Performance evaluation and feedback”-with reference with development results of many corporation, try to introduce the balance scorecard which is the performance management strategy that forms this study. By continued feedback and control, we create satisfied customers, lowest cost(budget), best quality, most efficient process, high morale and disciplined work team. Followed the sequence of order, core value, vision, strategy, balance scorecard, strategic actions, strategic goals, we complete the balance scorecard and strategy map of the case.
To ensure that the balance scorecard and strategy map meet the needs of the units, questionnaires and interview and analysis of experts prove the synergy and feasibility. Then conclusions and recommendations are given according to the results of analysis.