The Agenzia Industrie Difesa(AID) is a public-sector body established with a view to rationalising and modernising some industrial plants of the MoD(Law Decree 300/99).
It is an agency operating according to industrial criteria, under the supervision of the Ministry of Defense. Its mission is to balance the books of the industrial plants entrusted to its management, based on the principle of creating social and economic value-added benefits both for the nation and the community at large.
The staff working with the Rome Directorate General are committed to ensuring a coordinated and unified management of the agency. Most of them come from an industrial background, so that their expertise may be useful in changing the values according to a private-sector approach.
To reach cost-effectiveness, a full use of the available resources, systems and infrastructure is required, together with streamlined management costs and restored conditions of operational efficiency. Moreover, personnel skills shall be maximized and new products ad services developed.
To achieve this goal, two key elements are needed:
-Strengthening the Agency’s role as a MoD privileged supplier;
-Finding new markets to face growing competition.
The AID follows a market-oriented policy, even when dealing with its customer-of-choice.
Based on a three-year agreement signed by the Minister of Defense and the Agency Director General(CEO), the MoD shall give priority to the agency to meet its procurement requirements. The Agency, in turn, shall provide cost estimates and feasibility studies, in line with market prices, as well as certified quality products/services, complying with technical specifications.
AID operates to achieve business results managing the industrial plants of the Italian Ministry of Defence, in line with its economic goals, on competition and market basis.
It has recently adopted a New Organizational Structure based on five pillars called Business Unit(s):
-Explosives and ammunition,
-Land and air transport,
Based on management perspective, the BU is configured as a result center and has, therefore, a strategic and operational value in order to penetrate the market.
The BU operates to support AID in achieving its institutional Mission by closing agreements and contracts with public and private entities for goods and services procurement, as well as by participating in international consortia and companies, under prior approval of MoD.
The new challenge is to “Identify and exploit the potential of AID in terms of Human Resources, Skills and Industrial Capacity, on Institutional and Commercial markets for the benefit of the Italian Armed Forces”.
AID acts through its BU to sign new business partnerships, to supply the Public Administration with new services, by focusing on higher production volumes, containing costs, meeting Customer Satisfaction expectations, also sustaining youth workforce employment with intern and temp contract.
The AID is organized in a directorate general, reporting and providing technical and administrative support to the Director General (CEO) in the execution of its functions. The Agency’s management bodies are: the Director General (CEO), the Governing Board (four members) and the Board of auditors (three members and one alternate).
The Business Unit (BU) is, from an organizational and management perspective, configured as a result center and has, therefore, a strategic and operational value, with the goal to enhance the penetration of the external market.
Each BU – Naval Activities, Explosives and Ammunitions, Land and Air Transport, Dematerialization, Chemical Pharmaceutical Institute – is responsible for:
- operatively interfacing the customer, consolidating the relationship in continuity with the phase of “capture” set by the head of “Business Development”;
- identifying priority needs and propose satisfactory solutions for the customer;
- negotiating and closing contracts and cooperation agreements;
- evaluating, managing and controlling industrial and commercial risks;
- executing a contract, by streamlining workloads between production units involved, and synchronizing complementary activities;
- ensuring customer satisfaction through timely deliveries with high levels of quality required for the duration of the contract;
- developing its industrial capacity and product in line with the strategic guidelines and financial resources of the Agency;
- looking for external funding sources to improve industrial processes and developing competitive products;
- reinforcing the action of penetrating international markets.
The industrial plants have the task of performing the works and services planned by AID covering both annual and three-year plan activities.
Each plant operates with its own workforce, equipment and financial resources available, it also has its own managerial structure reporting to the Head of plant itself.
The Head of plant reports to the Agency’s CEO.