1 ATK Proprietary

Challenges & Solutions for Research Operations at Commercial High Risk Facilities

Dr. Sarah B. HizaDirector of Research OperationsATK Aerospace

A premier aerospace and defense company

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Agenda and TopicsA premier aerospace and defense company

• Introduction to ATK & Research Operations at ATK • Challenges in Research Operations

• High Risk Energetic Materials• process, technical & safety• business

• Solutions Discussion

• Organizations and Charters • A Cradle-to-Grave, or Lifecycle’s, Approach• Risk Awareness & Management• Operational Disciplines• Leadership Engagement

• Examples of Research Operations Successes • Concluding Perspectives

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History & Introduction to ATKA premier aerospace and defense company

ATK Financial Information*Financial measures FY11 Sales $4.8 Billion FY11 Orders $4.8 Billion FY11 Earnings per Share $9.32Sales by customer U.S. Army 30% NASA 13% U.S. Air Force 7% U.S. Navy 11% Other U.S. Government 7% Commercial/International 32%Sales by contract Prime Contractor 71%  Subcontractor 29%*All results based on FY11

 ATK Vision To be a global, diversified, industrial company that develops and manufactures highly-engineered materials and products that support mission-critical applications for our defense, aerospace, and security and sporting customers.

 Employees 17,000 Locations More than 60 facilities in 22 states, Puerto Rico, and internationally.

Our History -Launched as an independent company in 1990, when Honeywell spun off its defense businesses to shareholders -Former Honeywell businesses had supplied defense products and systems to the U.S. and its allies for 50 years-Multiple acquisitions through the mid 2000s

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Introduction: 4 Business GroupsA premier aerospace and defense company

ATK Aerospace ATK Armament

ATK Missile Products ATK Security and Sporting

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Research Operations at ATKA premier aerospace and defense company

The Research Operations directorate resides in the ATK Aerospace business group and is located between 2 Utah locations. However, we are proud to support

and serve all business lanes of ATK.

Promontory, Utah Magna, Utah• 70 employees• 100 facilities/buildings• 50 programs/projects per year• Storage of up to 1-M lbs of explosives and propellants

• 15 employees • 30 facilities/buildings• 20 program/projects per year• Storage of up to 300,000 lbs of explosives and propellants

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A premier aerospace and defense company

Research Operations provides a lifecycle's approach and hands-on execution for-aging and surveillance of fielded assets-first time article builds-low rate production-new designs & assemblies -testing of materials and small articles-storage, handling & logistics for unknown, new or suspect materials-troubleshooting (e.g. line stoppages, production changes)

IR&D,

Contracted Development & Technology,

Contracted Production Programs

Research & Development

• New Material & Process Development

• Formulation DOEs• Analysis of Material

Evaluations & Data• Concepts & Proposals• Research in Energetic

Molecules and Polymers• Advanced Chemical

Analysis

Research Operations•Hands-on execution – build, mix,

test•Generate & compile data for

analysis•Lifecycle, Documentation, and

Change Control•Safe & Repeatable Processes

•Compliance and Audits• Storage & Logistical

Management•Facility & Equipment Upkeep &

Maintenance

Who We Are: Organizationally Unique

2 organizations that

complement one another

with different charters &

focus

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Core Capabilities & High Risk Activities

Grams 500-lbs Scale Synthesis & Nitration

Aging & Surveillance, including full

disassembly & dissection of rocket

motors

10-grams 100-lbs Propellant & Explosive Mixing

Inert Processing, Machining, and Testing

full detonation

partial detonation

no detonation

subscale detonation testing

Testing & Performance Evaluation for Propellants and Explosives

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High Risk Operations: Energetic Materials

An energetic material has a high amount of internally stored chemical energy that can be released on demand without atmospheric oxygen.

Release of energy is on demand via

• Rapid decomposition Tetrazene

• Intra-molecular oxidation reduction Nitramines

• Inter-molecular oxidation reductionPerchlorate and Aluminum Al

Energy release is accompanied byLight PressureStable, low enthalpy molecules (N2, H2O, CO, CO2, etc) Heat

Oxidizer

Reductant (fuel)

Heat

ExplosivesPropellants

Pyrotechnics

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Safety Basics with Energetic Materials

•Start with very small quantities and have gated scale-ups and requirements

• Conduct as many operations remotely as possible

• Limit personnel exposure

• Design facilities to prevent “domino effects”

– Quantity Distance (Q.D.’s)

- Why We Have So Many Individual Building Structures

• Incorporate engineering interlocks as often as reasonably possible

• Constantly and consistently evaluate sensitivity of the materials (related to activation energy, Ea ) and mitigate via PPE, grounding, and other engineering controls

1) Thermal

2) Impact

3) Friction

4) Electrostatic

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Processing, Safety, & Technical Challenges

Hazard Recognition

Consequences of unplanned events with explosives and propellants are unacceptable to our customers and ATK

Effective Preparation & Planning

“Swiss Cheese Effect” leads to poor quality, safety incidents and poor business performance

Understanding and Meeting Compliance and Requirements: DOD 4145.26M, DOT requirements, EPA

Non-compliance and findings can lead to delays in deliverables, delays in contract awards, government fines, and loss of programs

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Business Challenges

Appropriate Program Budget, Schedule and Scope

Every customer, internal or external, wants the most technically-advanced article/material/product with the best performance…for pennies

We must offer value, not necessarily a cutting-corner’s approach

Adequate Discretionary and Indirect Resources

Lack of discretionary resources can lead to poorly maintained facilities & equipment, inadequate training, and outdated or ineffective practices

Maintaining an Operational Rhythm

Idle employees can lead to low morale, sloppy execution, and costly expenses

The Business Challenges can directly affect the Processing, Safety, & Technical Challenges discussed previously.

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Solutions: Organizational Checks & Balances

Research & Development

Research Operations

Facility & Equipment

Readiness & Checkout

Change Awareness &

Evaluation

Testing, Performance & Evaluation

Making of New Materials with

Unknown Sensitivities

Checks & Balance for High Risk Operations

"Don't be afraid to challenge the pros,even in their own backyard. […] Sometimes even the pros can become complacent.” -General Colin Powell

Organizational separation provides a group whose function is

-to ensure we ask questions and TAKE 2*

(provide balance to the excitement and eagerness of an idea)

-to be compliant and aware of requirements

(take care of the “stuff” the creative scientists and engineers don’t care about and don’t want to be bothered with)

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance

and RequirementsAppropriate Program Budget, Schedule and

ScopeAdequate Discretionary and Indirect

ResourcesMaintaining an Operational Rhythm

*based on DuPont’s TAKE 2…for Safety™

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Solutions: Hazard Recognition & Risk Management

• Quantification/Ease of Assessment

• Process to Gaining Approvals & Buy-In

Risk Management

Education, Mentoring & Training

xxxxxxxxxx

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance and

RequirementsAppropriate Program Budget, Schedule and

ScopeAdequate Discretionary and Indirect ResourcesMaintaining an Operational Rhythm

Provides Consistency, Predictability & Standards

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Solutions: Hazard Recognition and Response

• Education, Mentoring and Training

– Energetics Education & Training

- Tracked and reinforced

– Lessons-learned and cased-studies

– Automated Training System that elevates

Risk Management

• Help Chain Pulled

– Anything New or Unusual

– Condition of employment

• Help Chain Defined

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance and

RequirementsAppropriate Program Budget, Schedule and

ScopeAdequate Discretionary and Indirect ResourcesMaintaining an Operational Rhythm

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Solutions: A Lifecycles Focus & Operational Discipline

Receipt, Storage & Management of Materials and

Related Assets

Planning & Project Management

Energetic Materials and ProcessesDevelopment & Processing of Energetics

Inert Materials and ProcessesDevelopment & Processing of Inert Components

Materials TestingValidation of Mechanical Properties & Performance

Testing Product Testing, Performance Evaluation & Data Capture

Energetics and Motor SupportAging & Surveillance Programs and Motor Demil Support

Waste Disposal and Handling of

Customer Property & Tooling

Research Operations Foundation: Operational Disciplines“The assurance that the specific activities necessary for the successful daily operation of a

company's operations are running as they should be. This can include specific goals, missions, and guidelines.” –BusinessDictionary.com

You know (and appreciate) operational discipline when you see it!Cleanliness & Order, Focus on Execution, Predictability, Rhythm

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance and

Requirements

Appropriate Program Budget, Schedule & Scope

Adequate Discretionary & Indirect Resources

Maintaining an Operational Rhythm

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Solutions: Operational Disciplines

“Nothing can be more hurtful to the service, than the neglect of discipline; for that discipline, more than numbers, gives one army the superiority over another.” -GEORGE WASHINGTON, general orders, Jul. 6, 1777

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance and

Requirements

Appropriate Program Budget, Schedule & Scope

Adequate Discretionary & Indirect Resources

Maintaining an Operational Rhythm

MatrixTimelines,

Process Hazards,Roles &

Responsibilities

(other examples: compliance

matrix,open items, etc)

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Solutions: Know the “Is” Condition with Tracking Tools

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance

and RequirementsAppropriate Program Budget, Schedule and

ScopeAdequate Discretionary and Indirect

ResourcesMaintaining an Operational Rhythm

• Identification of key metrics and track them• Review them weekly, focus on the

“red” areas, and make it visible for all to see

• Mishaps• Close-calls• High Value Hazard Abatements• Corrective Action Effectiveness• On-Time Schedule Performance• Equipment Uptime• …and many others!

• Learn from other’s “Is” condition; sincerely review lessons-learned and related mishaps

• Part of our daily start-up meeting

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Solutions: Leadership Engagement & Commitment

Recognition of HazardsEffective Preparation & PlanningUnderstanding and Meeting Compliance

and RequirementsAppropriate Program Budget, Schedule and

ScopeAdequate Discretionary and Indirect

ResourcesMaintaining an Operational Rhythm

• Floor Time Ask Questions Observe Take Notes Correct Improve Reward See the Needs

• Be proactive and anticipate what could go wrong Look for ways to get out of the “reactive” mode, and have a proactive approach – by tracking tools, checklists with questions, and asking questions

• Having the right leaders“They first got the right people on the bus (and wrong people off the bus) and then figured out where to drive it.” –Jim Collins, Good to Great, Chapter 3 “First Who…Then What”

Of every Solution and Example presented, Leadership is most important. Leadership sets the expectations and focus. Without the right leadership, the

aforementioned items will die on the vine.

“That's what happens when you sit behind a desk. You forget things.”-Taken (movie, 2008)

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Highlighted Research Operations’ Recent Successes

• Brought on new IR&D raw material pilot plant ahead-of-schedule and below budget

– Adequately resourced, a lot of preparation and plan-ahead, an excellent team

• Established process, equipment, and mitigations for disassembly – including igniter and nozzle removal – and dissections of multiple fielded rocket motors new contracts, customers, and a growing business

– A lot of preparation, evaluations, interlocks, and inert checkouts

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Concluding Perspectives

• My career started as an R&D Scientist

– I wanted mixes, data and results

– I wanted some 1st time hands-on and observations but was not interested in completing the 25 DOE mix/formulation series

• Phrases that can never apply in a high risk commercial environment

– “good enough”, “I’d rather be lucky than good”, “let’s get by with this”, “bend the rules just this once”

• Standards, Convenient Checklists, Expectations, Predictable Processes and Mature Systems are critical to any of our successes

• Commitment to a Research Operations charter (regardless of organizational titles and structure) takes time, effort, persistence, investment, and passion

• Much of the tools, examples, and messages can be traced back to the core principles of Toyota’s Lean Production Systems (PES).

We are not perfect at everything that I’ve presented today; every year we get better. I am committed to continuously improving and staying vigilant.

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Thank you! Questions?

ã Shappell & Wiegmann, 2003