Manufacturing and Weapon Support Innovation A Warfighting ...
53
Manufacturing and Weapon Support Manufacturing and Weapon Support Innovation Innovation A A Warfighting Warfighting Imperative Imperative John Phillips John Phillips VP VP Aftermarket Aftermarket Growth Growth Program Director Program Director Spacelift Spacelift DMSMS Conference DMSMS Conference August 22, 2000 August 22, 2000
Transcript of Manufacturing and Weapon Support Innovation A Warfighting ...
Manufacturing and Weapon SupportManufacturing and Weapon SupportInnovationInnovation
AAWarfighting Warfighting ImperativeImperative
John Phillips John Phillips VP VP Aftermarket Aftermarket GrowthGrowth
Program Director Program Director SpaceliftSpaceliftDMSMS ConferenceDMSMS Conference
August 22, 2000August 22, 2000
41-17864 Page 1
Military VisionMilitary Vision
DoDMinimum Cost
Policy
DoDMinimum Cost
Policy
AssuredVictory
AssuredSupport
WarfighterWarfighterEquip-Train-SupportEquip-Train-Support
Warfighting Warfighting is uncompromisingis uncompromising
41-17864 Page 2
Growing Worldwide DemandGrowing Worldwide Demand
1992LA
Riots1992Typhoo
Iniki
1992HurricaneAndrew
1994Granada
1994Restore
Democracy
1991HaitiNEO
1990Just
Cause
1991-3GTMO/HaitiRefugees
1998Hurricane
1990SierraLeoneNEO 1990
LiberiaNEO
1995Liberia
NEO
1993RwandaFamine
1993-4SharpGuard
1993-4ProvidePromise
1992-6SinalMNF
1991-6ProvideComfort
1992Able
Sentry
1992Provide
Hope1993-6DenyFlight
1994Iraqi
BorderFeint
1992-6Southern
Watch
1991Somalia
NEO
1992-4SomaliaFamine
1990-1DesertStorm
1991-2Sea
Angel I/II
1995Taiwan
Maneuvers
1991Pinatubo
Evac
1994NorthKoreaAlert
1998MidEast1998
EmbassyBombing
1998Albaina
1998Iraq
19991999E TimoreE Timore
19991999KosovoKosovo
Military OperationsMilitary Operations
41-17864 Page 3
The Changing Concept of OperationThe Changing Concept of Operation
• What We have– Heavy combat emphasis– Short legs– Big targets– Slow movers– Single function– Long/heavy logistics tails– Extended deployment
timelines– Stovepipe intel– Unique hardware– Old systems
• What We Need– Broad capability– Longer range– Dispersed operation– Agile forces– Multi-dimensional platforms– Small logistics footprint– Rapid response– Integrated information– Common systems– Upgrades– Space based technology
41-17864 Page 4
Fiscal Year
0
1000
2000
3000
4000
5000
6000
10
Nu
mb
er o
f A
ircr
aft
JSF90 92 94 96 98 00 02 04 06 08
F-14
F-22F-22F/A-18E/FF/A-18E/FF/A-18C/D
F/A-18A/B
AV-8BA-6
F-16
F-15
F-111
F-117
F-4A-10
Today
1000New Systems
10001000New SystemsNew Systems
4200Aircraft42004200
AircraftAircraft
Department of Defense TacAir InventoryDepartment of Defense TacAir Inventory
Focus of O&S ImprovementsFocus of O&S Improvements
41-17864 Page 5
Tank and IFV Inventory
Fiscal Year
90 92 94 96 98 00 02 04 06 08 10
Nu
mb
er o
f V
ehic
les(
K)
M2A4M2A4M2A3M2A3
M1A3M1A3M2ODSM2A2
M2A1
M2A0M1A2
M1A1
M1A0
M60
0
2
4
6
8
10
12
14
16
18
20
16,000Tanks &IFV(s)
16,00016,000Tanks &Tanks &IFV(s)IFV(s) 3000
NewSystems
30003000NewNew
SystemsSystems
Today
Focus of O&S ImprovementsFocus of O&S Improvements
Focus on After Market/MTSFocus on After Market/MTS
41-17864 Page 6
C17 V22 ComancheLongbowApache F22 F18E/F JSTARS JSF
LM Boeing (MD) Bell-Boeing Boeing Boeing (MD) Boeing (MD) LM (NG) ???Major sub LM (NG) Sikorsky Boeing LM (NG) Boeing B/MD or LM?Engine Allison T 406 ASA T800 P&W F119 GE F404 P&W JT3D-3B P&W or GEQty QDR(Projected)
120 375 1292 800 remanuf. 335 550 35 3500+
Budget(2000 – ON)
$43B $20B+ $25B+ $9B $50B $25B $12B $150B+
MIL A/C Production Beyond 2000MIL A/C Production Beyond 2000
41-17864 Page 7
U.S. Restructuring - Major FirmsU.S. Restructuring - Major Firms
Bath Iron WorksBath Iron Works
General DynamicsGeneral Dynamics
GE AerospaceGE Aerospace
Martin MariettaMartin Marietta
LockheedLockheed
LoralLoral
LTVLTV
GrummanGrumman
NorthropNorthrop
WestinghouseWestinghouse
BoeingBoeing
RockwellRockwell
McDonnell DouglasMcDonnell Douglas
MagnavoxMagnavox
HughesHughes
E-SystemsE-Systems
RaytheonRaytheon
Texas InstrumentsTexas Instruments
TRWTRW
BDMBDM
AlliedSignalAlliedSignal
HoneywellHoneywell
GeneralGeneralDynamicsDynamics
LockheedLockheedMartinMartin
Loral SpaceLoral Space
NorthropNorthropGrummanGrumman
BoeingBoeing
Hughes SpaceHughes Space
RaytheonRaytheon
TRWTRW
HONEYWELLHONEYWELL(NEW)(NEW)
NEW ADDITIONSNEW ADDITIONSComputer DevicesComputer DevicesGTE Government SystemsGTE Government SystemsNational Steel & ShipNational Steel & ShipGulfstreamGulfstream
COMSAT (pending)COMSAT (pending)
Satellite Network SystemsSatellite Network SystemsSpectrum SatelliteSpectrum Satellite
California MicrowaveCalifornia MicrowaveInt’l Research InstInt’l Research InstTeledyne RyanTeledyne Ryan
USSBCUSSBCPrimestarPrimestar
AlliedSignal CommunicationsAlliedSignal CommunicationsAustralia Technical ServicesAustralia Technical Services
Lucas AerospaceLucas Aerospace
Hughes Space (pending)Hughes Space (pending)
41-17864 Page 8
Defense Industry (R)Evolution - TechnologiesDefense Industry (R)Evolution - Technologies
FORMER DEFENSE INDUSTRYCHARACTERISTICS
– Threat Driven TechnologyPull
– Product TechnologiesDevelopment
– Primary Focus on WeaponSystem PerformanceTechnologies
– Significant DistinctionBetween Defense andCommercial Technologies
– Commercial IndustrialComplex
CURRENT DEFENSE INDUSTRYCHARACTERISTICS
– Cost-Driven Technology Pull
– Emphasis on IntegratedBusiness Practices and ProductManufacturing DevelopmentTechnologies
– Primary Focus on Information,Communication, & FunctionIntegration Technologies,Electronics & Opto-electronics
– Less Distinction BetweenDefense and CommercialTechnologies with COTSPreference
– Defense Industrial Complex
41-17864 Page 9
2001Time• Age of W/S• DMS• Technology Obsolescence• Diminishing Organic Infrastructure• Budget Reduction
Causes• Performance Contracts• Teaming with Industry• Logistics Response Time• Manufacturing on Demand, MANTECH• ACTD, MTS, DVD• E-Commerce
Enablers
Parts InventoryWeapons Systems Inventory
Parts Shortage/Readiness
FY 1995 FY 2000
C-5F-18KC-135F-16C-130M1A1UH-1P-3
Sustainment & Modernization ChallengesSustainment & Modernization Challenges
41-17864 Page 10
77.7 74.60 72.9082 78
71
0102030405060708090
100
Vin
son
Kha
wk
Con
nie
EN
T
TR
JKF
MISSION CAPABLE
Source: Navy
66 61.4055.50
7467 64
0102030405060708090
100
Vin
son
Kha
wk
Con
nie
EN
T
TR
JFK
FULL MISSION CAPABLE
Weapon System ReadinessWeapon System Readiness
41-17864 Page 11
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998 1999
Total Air ForceTotal Air Force
MISSION CAPABLE RATES 1991-99MISSION CAPABLE RATES 1991-99
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998 1999
FightersFighters BombersBombers
Strategic AirliftStrategic Airlift OthersOthers
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998 1999
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998 1999
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998 1999
DECADEDECADE
Courtesy: Air Force Magazine / Dec 99
41-17864 Page 12
Source: AFMC Re-Engineered Supply Support Process
F-16 Logistics PerformanceF-16 Logistics Performance
Metric FY94 FY95 FY96 FY97 FY98 FY99
MC 92.0 89.7 87.5 82.8 78.3 77.3
TNMCS 4.5 6.5 6.6 9.9 12.8 12.4
TNMCM 3.9 4.4 6.7 9.8 13.4 13.0
Iss Eff N/A 74.9 74.6 71.8 70.2 72.0
41-17864 Page 13
0
500
1000
1500
2000
2500
3000
3500
4000
4500
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
No
. of
Do
cum
ents
0
10
20
30
40
50
60
70
80
Per
cen
t
Air MobilityAir Mobility
Requisitions On Backorder at DepotsRequisitions On Backorder at Depots
Source: Air Force
41-17864 Page 14
Force Structure ChangesForce Structure Changes
Active Army Divisions
02468
10121416
1993 1994 1995 1996 1997 1998 1999 2000
Fighter/Attach Aircraft
0
500
1000
1500
2000
2500
3000
3500
1993 1994 1995 1996 1997 1998 1999 2000
Active Army Divisions
0
200
400
600
800
1000
1200
1993 1994 1995 1996 1997 1998 1999 2000
Battle Ship Forces
050
100150200250300350400450
1993 1994 1995 1996 1997 1998 1999 2000
29% Reduction29% Reduction1993 to 20001993 to 2000
27% Reduction27% Reduction1993 to 20001993 to 2000
18% Reduction18% Reduction1993 to 20001993 to 2000
28% Reduction28% Reduction1993 to 20001993 to 2000
Source: DoD
41-17864 Page 15
DoD Depot Maintenance DownsizingDoD Depot Maintenance Downsizing
0
5
10
15
20
25
30
1991 1993 1995 1997 1999 2001 2003
Depots Depot Budgets 1999 $B) Depot Personnel (000)
350
300
250
200
150
100
0
PersonnelDepots & BudgetsDepot reduced 39%Depot reduced 39%
Budgets reduced 13%Budgets reduced 13%Personnel reduced 55%Personnel reduced 55%
Source: DoD
41-17864 Page 16
DoD Organic MaintenanceDoD Organic Maintenance
0
5000
10000
15000
20000
25000
30000
35000
40000
1999
2001
2003
1999
2001
2003
1999
2001
2003
1999
2001
2003
1999
2001
2003 Workload
Capacity
ARMY AIR FORCE NAVSEA NAVAIR MARINE CORPS
Note: NAVESEA data includes NSWC and NUWC. Air Force data excludes SA-ALC, SM-ALC, and AMARC.Note: NAVESEA data includes NSWC and NUWC. Air Force data excludes SA-ALC, SM-ALC, and AMARC.
Source: DoD
Depot Capacity and Utilization
41-17864 Page 17
Major Studies of the Acquisition ProcessMajor Studies of the Acquisition Process
Just Do ItJust Do It
19701970 19711971 19721972 19731973 19741974 19751975 19761976 19771977 19781978 19791979 19801980 19811981 19931993 19971997 19981998
Blue Ribbon (Fitzhugh) ReportBlue Ribbon (Fitzhugh) Report
DODD 5000.1DODD 5000.1
Commission on Government Procurement ReportCommission on Government Procurement Report
Office of Federal Procurement PolicyOffice of Federal Procurement Policy
AMARC ReportAMARC Report
NMARC ReportNMARC Report
SARMAGSARMAG
Acquisition Advisory Group ReportAcquisition Advisory Group Report
OMB Circular A-109OMB Circular A-109
QDRQDR
Acquisition Acquisition
Law AdvisoryLaw Advisory
PanelPanel
“Report of the Acquisition Cycle Task Force”,“Report of the Acquisition Cycle Task Force”,
DSB 1977 Summer StudyDSB 1977 Summer Study
Defense Resources Management StudyDefense Resources Management Study DSB 1980 Summer DSB 1980 Summer
Study on IndustrialStudy on Industrial
ResponsivenessResponsiveness
41-17864 Page 18
3Reduce acquisition cycle time by 25%3Achieve visibility of 90% of DoD materiel assets3Reduce logistics response time by 50%3Use purchase card for 90% of all DoD micropurchases3Reduce excess inventory by $13B3Reduce paper transactions by 50%3Achieve O&S costs visibility through ABC3Dispose of $2.2B in excess National Defense Stockpile
inventories3Dispose of $3B of unneeded Government property3Achieve annual defense procurement of at least $54B
Rapidly removing barriers is key to success
NPR Goals - O&S Cost by FY2000NPR Goals - O&S Cost by FY2000
41-17864 Page 19
Acquisition Reform InitiativesAcquisition Reform Initiatives
• Military Specs and Standards Reform• Single Process Initiatives• Earned Value Management Initiatives• Purchase Card• Prime Vendor Direct• Cost as an Independent Variable• Dual Use Application Program• Federal Acquisition Regulation Rewrite
– FAR Part 15 - More Communication with Industry– FAR Part 45 - Eliminate Record Keeping on Government Property– FAR Part 37 - Emphasize Performance-Based Contracting
• Department of Defense 5000.1/5000.2 - R Rewrite• Information Technology Management Reform Act• Reduced Total Ownership Cost• Centers of Technical Excellence• Teaming with Industry
41-17864 Page 20
Section 912 Restructure Section 912 Restructure SustainmentSustainment
CommercialPractices
CompetitivelySourceProductSupport
ModernizationThroughSpares
IncreasePrime
Vendor &
VirtualPrime
Vendor
PMLife
CycleResponsibility
Purpose:Purpose:Implement Reengineered Product Support PracticesImplement Reengineered Product Support Practices
•• Improve Customer ServiceImprove Customer Service•• Improve Mission Capable RatesImprove Mission Capable Rates•• Reduce Product Support CostsReduce Product Support Costs•• Provide Full Asset VisibilityProvide Full Asset Visibility
OUTPUTOUTPUT
41-17864 Page 21
• Focused on readiness• Integrated supply chains• Competitive sourcing
Operational Requirements
OngoingDoD
Initiatives
Best Commercial
Practices
Product Support 2005
TimeDefinite Delivery
TimeTimeDefinite Definite DeliveryDelivery
Increased Agility
IncreasedIncreased Agility Agility
Rapid TheaterClosure
Rapid TheaterRapid TheaterClosureClosure
MissionCapability
MissionMissionCapabilityCapability
CompetitiveSourcing
CompetitiveCompetitiveSourcingSourcing
Virtual PrimeVendor
Virtual PrimeVirtual PrimeVendorVendor
Prime VendorPrime Prime VendorVendor
Segmental Logistics
Segmental Segmental LogisticsLogistics
CustomerServiceMetrics
CustomerCustomerServiceServiceMetricsMetrics Integrated
Supply Chains
IntegratedIntegratedSupply Supply ChainsChains
Strategic
PartneringStrategicStrategic
PartneringPartnering
Competitively source all major weapon systems/assess prime vendor support for all consumables.
FY99 FY00 FY01 FY02 FY03 FY04 FY05
912Implementation
Plan30 Major Pilot Programs
PilotProgram
Conference
PilotProgram
Plans
Reengineering Product SupportReengineering Product Support
41-17864 Page 22
Nominal Cost DistributionNominal Cost Distribution
Typical DoD Acquisition Program with a ServiceTypical DoD Acquisition Program with a ServiceLife of About 30 YearsLife of About 30 Years
LIFE CYCLE COSTLIFE CYCLE COST
OPERATION AND SUPPORTOPERATION AND SUPPORT
SYSTEM ACQUISITIONSYSTEM ACQUISITION
28%28%
72%72%
0 I II III0 I II III
DISPOSALDISPOSAL
YEARSYEARS
41-17864 Page 23
Aircraft System Cost of Ownership ComparisonAircraft System Cost of Ownership ComparisonAircraft System Cost of Ownership Comparison
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000
A-10AC-130B/E/HKC-10AF-16A/B/C/DKC-135RF-4GF-15A/B/C/DF-111C-5A/BF-117AB-52/G/HB-1BE-8
B-2
$ per Flt Hr
41-17864 Page 24
889.76
287.7
87.14
0 200 400 600 800 1000
M1
M1A1
M1A2
O&S Costs Per Mile (FY96)
Increasing Complexity And CostIncreasing Complexity And Cost
41-17864 Page 25
Cost Analysis ModelCost Analysis Model
ManpowerManpower•• Improve Repair Process Improve Repair Process••Reduce Operator WorkloadReduce Operator Workload
DLRsDLRs•• R&M Mods R&M Mods••Alt Source of RepairAlt Source of Repair•• Improve Fault Isolation Improve Fault Isolation
FuelFuel•• Fly Less Fly Less•• Change Flight Profile Change Flight Profile
DriversDrivers•• Manpower Manpower•• Fuel Fuel•• DLRs DLRs
DriversDrivers•• R&D R&D••Unit ProductionUnit Production
R&DR&D
Unit ProductionUnit Production
AircraftAircraft
Armament &Armament &MissileMissile
SystemsSystems
SpaceSpaceSystemsSystems
LaunchLaunch
R&DR&D
Unit ProductionUnit Production
DriversDrivers•• R&D R&D•• Unit ProductionUnit Production•• Launch Launch
41-17864 Page 26
Weapon SystemWeapon System F-15EF-15E F16CF16CCost ElementsCost ElementsFlying Hr Costs/per Flying HrFlying Hr Costs/per Flying HrAviation FuelAviation Fuel 1,7271,727 697697Depot MaintenanceDepot Maintenance 90 90 106106Depot Level RepairablesDepot Level Repairables 2,579 2,579 1,3871,387Consumable SuppliesConsumable SuppliesGeneralGeneral 196196 118118SystemSystem 249 249 150150
Airframe costs per PAAAirframe costs per PAADepot MaintenanceDepot Maintenance 98,04898,048 14,70714,707
Other CostsOther CostsPersonnelPersonnelMilitary PayMilitary Pay 28,710,00028,710,000 23,500,00023,500,000Civilian PayCivilian Pay 790,000790,000 700,000700,000
Depot and People Drive Cost
Weapon System Operating and Support Cost ComparisonWeapon System Operating and Support Cost Comparison
41-17864 Page 27
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
.5x 1x 2x 4x 8x
• Two Major Effects:• Labor• Materiel
(Pipeline Spares)
Failure Avoidance Is the MostFailure Avoidance Is the MostEffective Approach for Effective Approach for
Minimizing Life Cycle CostsMinimizing Life Cycle CostsAll Life Cycle Cost ModelsAll Life Cycle Cost Models
Rel
ativ
e O
&S
Co
st
Change in MTBF
Reliability
Ref # MDS Total ($M) $/Flt Hr. Nomenclature1 F-16C $17.587 $62.60 Signal Processor-AN/APG-682 F-16C $15.853 $56.42 Modular LPRF-AN/APG-683 F-16C $13.690 $48.73 XMTR Dual Mode-AN/APG-684 C-141B $8.042 $54.84 Inertial nav Unit5 B-1B $7.973 $300.49 ECM Bank 8-AN/ALQ-1616 B-1B $6.924 $260.95 Radar Set/ASQ-1847 F-16C $4.683 $17.58 Radar Antenna-AN/APG-688 F-16C $4.038 $15.19 Inertial Nav Unit9 F-16C $3.738 $14.56 Digital Flt Control Computer
10 B-52HB $3.698 $155.71 Inertial Measurement Unit11 F-16C $3.884 $14.18 Heads Up Display12 C-141B $3.771 $25.71 Engine Nacelle13 F-16A $3.756 $111.83 Inertial Nav Unit14 F-15C $3.467 $34.27 Generator/Constant Speed Drive15 F-16C $3.342 $11.89 Fire Control Computer16 B-1B $3.285 $123.80 RF-AN/ALQ-16117 C-141B $3.038 $20.71 Central Air Data Computer18 C-141B $2.296 $19.95 Digital Gyro Assembly19 T-38 $2.856 $29.02 General Group 120 B-1B $2.728 $102.83 ECM Band 6-AN/ALQ-16121 KC-135 $2.652 $21.28 Inertial Nave Unit22 F-16D $2.615 $53.91 Prog. Sig. Process. An/APG-6823 C-5 $2.595 $68.03 AC Power System24 C-141 $2.581 $17.60 Hydraulic Components25 C-141 $2.422 $16.52 Constant Speed Drive Comp.
(Top 25 USAF Avionics/Accessories Cost Drivers)
F-16 Aircraft
Reliability vs Cost of OwnershipReliability vs Cost of Ownership
41-17864 Page 28
Revolution In ReliabilityRevolution In Reliability
ProcurementProcurementInvestmentInvestment
OEM/DepotOEM/DepotPartnershipPartnershipConceptsConcepts
ReduceReduceMaintenanceMaintenance
& Spares& Spares
EXECUTIVEEXECUTIVEDIRECTIVEDIRECTIVE
Consume/EliminateExistingSparesFrom
Inventory
Consume/EliminateExistingSparesFrom
Inventory
Three LevelMaintenanceApproved byWaiver Only
Three LevelMaintenanceApproved byWaiver Only
THREAT DRIVENTHREAT DRIVENFOCUS ONFOCUS ON
WARFIGHTERWARFIGHTERREADINESSREADINESS
ModernizeModernizeAssembliesAssemblies
(OEM)(OEM)
PM ControlPM ControlSection 912Section 912
High RelHigh RelParts at Parts at NormalNormalLevelsLevels
StocksStocks“Obsolescent”“Obsolescent”“End-of-Life”“End-of-Life”
RedesignRedesignRemanufactureRemanufacture
DROPPEDDROPPED
41-17864 Page 29
Contract For Reliability ImprovementsContract For Reliability Improvements
GOVERNMENT:• Cost:
– Establish Contractor Depot/RIW Support• Benefits:
– Reduced acquisition cost– Timely incorporation of latest technology– Elimination of organic depot (and
associated costs)– Improved reliability (MTBF)– Reduced Number of spares in the
logistics pipeline– Personal pride in being part of a
paradigm busting program
CONTRACTOR:• Cost:
– Contractor funds all non-recurring effort– Contractor funds cost to upgrade
hardware
• Benefits:– Reduced cost to manufacture– Increased market share– Timely incorporation of latest technology– Longer product life cycle– Contractor depot– Contractor receives timely and accurate
feedback on field problems (failures - asevidenced by units returned for repair)
– Personal pride in being part of aparadigm busting program
41-17864 Page 30
Acquisition - A Complex ProcessAcquisition - A Complex Process--A Readiness and Sustainment Enabler-A Readiness and Sustainment Enabler-
Direct Vendor DeliveryLong Term Contracting
ACO PRO
CreditCards
EDI
Pre-AwardPre-AwardSurveysSurveys
InvoicesInvoices
ShipmentsShipmentsInvoicesInvoices
BidsBidsProposalsProposals
HardwareHardwareSoftwareSoftware
CONTRACTORCONTRACTOR
SustainmentSustainmentStatementStatementOf WorkOf Work
InstallationInstallationSupportSupport
WeaponWeaponSystemsSystems
ForeignForeignMilitary SalesMilitary Sales
REQUIREMENTSREQUIREMENTS
JustificationsJustifications& Approvals& Approvals
Source SelectionSource SelectionPricingPricing
QualityQualityCommodityCommodityCommandCommandStandardStandardSystemSystem
TransportationTransportation SmallSmallBusinessBusiness
AcqAcqPlansPlans
DefenseDefenseContractContract
Audit AgcyAudit Agcy
ACQUISITIONACQUISITION
TechTechDataData
PackagesPackages
VendorVendor Response Response
SolicitationsSolicitations
CommerceCommerceBusinessBusiness
Daily NoticesDaily Notices
WorldWideWeb
Database
Tech DataTech DataPackagesPackages
SpecificationsSpecifications
Eng ChangeEng ChangeProposalsProposals
ENGINEERINGENGINEERING
ELECTRONIC ELECTRONIC CONTRACTINGCONTRACTING
AlertsAlerts
QualityQualityDeficiencyDeficiency
ReportsReports Reports ofReports ofDiscrepancyDiscrepancyDefense
ContractMgmtCenter
DefenseContract
MgmtCenter
ContractorContractorPaymentPayment
ShipmentsShipments
UnliquidatedUnliquidatedObligationsObligations
DefenseDefenseFinance &Finance &
AccountingAccountingServiceService
41-17864 Page 31
Tyranny of DistanceTyranny of Distance
15-20 handling points in current process.15-20 handling points in current process.15-20 handling points in current process.
Over 90.000 suppliersOver 90.000 suppliers
IndustryIndustry365 Days365 Days
14 Inventory14 Inventory
Contract Points Contract Points
(5M NSN’s)(5M NSN’s)
CommercialCommercial
MaintenanceMaintenance
Providers (2.000)Providers (2.000)
Maintenance DepotsMaintenance Depots
EngineeringEngineeringActivitiesActivities
DefenseDefenseAutomatedAutomatedAddressingAddressing
SystemSystem
$548$548
21 Distribution 21 Distribution
CentersCenters
36 days36 days
Order-Receipt TimeOrder-Receipt Time
InventoryInventory
TheaterTheaterServicesServices
RetailRetailServicesServices
TheaterTheaterSupportSupport
CommandCommand
PortPort UnitUnit
MaintenanceMaintenance
2,000-3,0002,000-3,000
•• CWTCWT•• Queueing Queueing Time Time ~~ Lack of Info Lack of Info
41-17864 Page 32
NIPRNET*
•• NIPRNET operational NIPRNET operational•• JCC Kaposvar site test JCC Kaposvar site test scheduled Jan 5, 1995 scheduled Jan 5, 1995
* Non-secure IP routed network• Military segment of Internet• Provides firewall protection for military traffic• Used for EDI transaction
Joint Contracting CentersJoint Contracting Centers(JCC)(JCC)Kaposvar*, Hungary, Tuzla,Kaposvar*, Hungary, Tuzla,BosniaBosnia
Procurement PoliceProcurement Police•• Procure locally Procure locally•• Procure in-theatre Procure in-theatre•• FACNET FACNET
CommunicationsCommunications•• Land-Line primary Land-Line primary communications communications•• Satellite link to CONUS Satellite link to CONUS back-up communications back-up communications
LOGISTICLOGISTICSUPPORTSUPPORT
CONTRACTSCONTRACTS
Success: The Promise of E-CommerceSuccess: The Promise of E-Commerce
41-17864 Page 33
Toward PaperlessToward Paperless
Integrated Information TechnologyIntegrated Information Technology
SYSTEMSSYSTEMS PROCESSESPROCESSES
• Inbound Logistics• MRP Systems• JIT Delivery• Just Enough
ForecastingDRPWarehouse ManagementMaterial VisibilityPerformance TrackingPackaging
ForecastingForecastingDRPDRPWarehouse ManagementWarehouse ManagementMaterial VisibilityMaterial VisibilityPerformance TrackingPerformance TrackingPackagingPackaging
Shipment TrackingProof of DeliveryInventory ManagementVendor Owned InventorElectronic CommerceElectronic DO250
Shipment TrackingShipment TrackingProof of DeliveryProof of DeliveryInventory ManagementInventory ManagementVendor Owned InventorVendor Owned InventorElectronic CommerceElectronic CommerceElectronic DO250Electronic DO250
41-17864 Page 34
Inventory Instead of InformationInventory Instead of Information
CapacityCapacityBuffersBuffers
CapacityCapacityBuffersBuffers
ExpensesExpensesAssetsAssets
ROAROA
ManufacturingManufacturingPlanningPlanning
DeploymentDeploymentPlanningPlanning
++ ==
SUPPLY CHAINSUPPLY CHAINMANAGEMENTMANAGEMENT
IS ABOUTIS ABOUTINCREASING INCREASING
RETURN ON ASSETSRETURN ON ASSETS
NOT ENOUGHNOT ENOUGH
Pipeline inventory bloat not only adds cost but obscuresPipeline inventory bloat not only adds cost but obscuresopportunities for cross-partner process improvementsopportunities for cross-partner process improvements
41-17864 Page 35
Better Solution: Better Solution: Collaborative Processes and TechnologiesCollaborative Processes and Technologies
SupplierSupplier
SupplierSupplier
SupplierSupplier
CustomerCustomer
CustomerCustomer
CustomerCustomer
Phase 1:Phase 1:TransactionTransactionAutomationAutomation
Phase 2:Phase 2:SharedShared
OperatingOperatingDataData
Phase 3:Phase 3:CollaborationCollaboration
Transaction Data, EDI, VANsTransaction Data, EDI, VANs
EDI and Web Self-ServiceEDI and Web Self-Service
Web-Based Data ExchangeWeb-Based Data ExchangePlanningPlanningEngineEngine
PlanningPlanningEngineEngine
Capacities and ConstraintsCapacities and Constraints
ATP, CTPATP, CTP
Invoices, ASNsInvoices, ASNs
Re-Engineered Business Processes (EPI)Re-Engineered Business Processes (EPI)Shared Intelligence, Exception-Driven MessagingShared Intelligence, Exception-Driven Messaging
Manufacturing Schedules, On-Hand Inventory, POS DataManufacturing Schedules, On-Hand Inventory, POS Data
CustomerCustomerDesignersDesignersRaw Raw Mat’lMat’l
ManufacturingManufacturing
eBusiness eBusiness Cradle-to-Grave Life CycleCradle-to-Grave Life CycleManufacturingManufacturing
Raw MaterialsRaw Materials
In-Process (WIP) InventoryIn-Process (WIP) Inventory
Finished GoodsFinished Goods
ServicesServices
Related InformationRelated Information
AcquisitionAcquisition
Maintenance ConceptMaintenance Concept
System SupportSystem Support
CataloguingCataloguing
Item IdentificationItem Identification
Technical DataTechnical Data
Requirement DeterminationRequirement Determination
Peace/WarPeace/War
Provisioning/SupportProvisioning/Support
Demand ForecastingDemand Forecasting
Lead-timeLead-time
Safety LevelsSafety Levels
Order QuantitiesOrder Quantities
SecuritySecurity
DisposalDisposal
MaintenanceMaintenance
Inventory ControlInventory Control
Stock RecordsStock Records
RequisitionsRequisitions
StatusStatus
Order GenerationOrder Generation
ProcurementProcurement
ContractingContracting
Contract AdministrationContract Administration
Quality AssuranceQuality Assurance
PaymentPayment
MaintenanceMaintenance
Maintenance ControlMaintenance Control
Maintenance ManagementMaintenance Management
Engineering SupportEngineering Support
ProductionProduction
WarehousingWarehousing
ReceiptReceipt
Warehouse OperationsWarehouse Operations
KittingKitting
Quality AssuranceQuality Assurance
Physical InventoryPhysical Inventory
IssueIssue
Shipment PreparationShipment Preparation
Release to TransportRelease to Transport
TransportationTransportation
AuthorizationAuthorization
Traffic ManagementTraffic Management
MovementMovement
Reutilization/MarketingReutilization/Marketing
VisibilityVisibility
ReutilizationReutilization
SaleSale
ScrapScrap
41-17864 Page 37
Industry View Industry View eBusiness Strategies for the Supply ChaineBusiness Strategies for the Supply Chain
StrategyStrategy Business FunctionsBusiness Functions MetricsMetricseProcurement/ Cross-enterprise system-to- ProductivityeCommerce system integration Reduced cost/cycle
time contract compliance customer reach
eCollaboration Cross-enterprise technology/ Design cycle timedesign interaction design synergy,
reuse revenueIntegrated planning/ Cross-enterprise planning/ Lead time, marginmanufacturing execution system-to-system accuracy/flexibility
integration/ outsourced inventory levelsmanufacturing visibility on-time delivery
Integrated delivery Cross-enterprise logistics Logistics cycle timemanagement/consignment reduced costvisibility lead time
On-line marketing Product boundary extension Market segmentnew products/services creation sharenew markets/channel creation e-Profit is never
(Source: INTEL) enough
41-17864 Page 38
Maintenance e-BusinessMaintenance e-BusinessAIRCRAFT FAILUREAIRCRAFT FAILURE AUTOMATED DATA RETRIEVALAUTOMATED DATA RETRIEVAL SCHEDULING/DISPATCHERSCHEDULING/DISPATCHER
MSCMSCFault DataFault Data
••Fault code determinedFault code determined
••Work order assignedWork order assigned
••Scheduled for maintenanceScheduled for maintenance
••Technician assignedTechnician assigned
MAINTENANCE TECHNICIAN PREPMAINTENANCE TECHNICIAN PREP
••Work package generated/reviewedWork package generated/reviewed
••Download work package to pidsDownload work package to pids
••Draw tools/equipmentDraw tools/equipment
PIDS & Task PIDS & Task PackagePackage
AIRCRAFT RECOVERYAIRCRAFT RECOVERY
ANDAND
MAINTENANCE ACTIONMAINTENANCE ACTION
Update Local Maintenance Support ClustersUpdate Local Maintenance Support Clusters
••Safe for maintenanceSafe for maintenance
••Gain access to aircraft interface for self test, status, and diagnosticsGain access to aircraft interface for self test, status, and diagnostics
••Remove/replace part (adjust or repair)Remove/replace part (adjust or repair)
••Obtain partsObtain parts
••Perform system checkPerform system check
••Secure aircraftSecure aircraft
••Store maintenance data, actions, and conditionsStore maintenance data, actions, and conditions
MAINTENANCE DEBRIEFMAINTENANCE DEBRIEFMaint. Data,Maint. Data,actions &actions &conditionsconditions
••Download maintenance activityDownload maintenance activity
••Update databaseUpdate database
••Aircraft status/recordAircraft status/record
••Maintenance data collectionMaintenance data collection
••Generate repairable turn-in formGenerate repairable turn-in form
••Turn in part/equipmentTurn in part/equipment
MaintenanceMaintenanceData to HistoryData to History
DatabaseDatabase
••WANWAN
••ModemModem
••SatelliteSatellite
Global Maintenance History Global Maintenance History Data CenterData Center
Aircraft Data Recovery, Analysis, Trending and PrognosticsAircraft Data Recovery, Analysis, Trending and Prognostics
••On-board VMS Health Monitoring System detects failureOn-board VMS Health Monitoring System detects failure
••Failure data and environmental conditions at timeFailure data and environmental conditions at time
of failure transmitted during flightof failure transmitted during flight
41-17864 Page 39
Material Flow e-BusinessMaterial Flow e-BusinessSimulationSimulationProvidesProvidesStrategyStrategyControlsControls
DemandDemand
Goods and Outbound TrackingGoods and Outbound Tracking Repair Repair
and and
OverhaulOverhaul
DeploymentDeployment
Warehouse OperationsWarehouse Operations
Inbound TrackingInbound Tracking
Manufacturing and Manufacturing and
Multi-Tier SuppliersMulti-Tier Suppliers
Advance ShipAdvance ShipNoticeNotice
Client MRPClient MRP
SystemsSystems
EDI LinksEDI LinksMaterialsMaterials
ManagementManagement
CostCostServiceService
TransportTransport
PlanningPlanning
CustomerCustomer
ServiceService
EIS/DataEIS/Data
WarehousingWarehousing
Order ManagementOrder Management
41-17864 Page 40
The Future of ManufacturingThe Future of Manufacturing
•• Virtual Manufacturing ConglomeratesVirtual Manufacturing Conglomerates
•• Manufacturing on demandManufacturing on demand
•• Collaborative Design and ManufacturingCollaborative Design and Manufacturing
•• Remote Job Entry/RequisitioningRemote Job Entry/Requisitioning
•• What is needed?What is needed?
–– Rapid CNC reconfigurationRapid CNC reconfiguration
–– Flexible machine languageFlexible machine language
–– Job order brokering/scheduling processJob order brokering/scheduling process
–– Demand forecasting Demand forecasting
Limited success todayLimited success today
41-17864 Page 41
DoD Depot Mfg Infrastructure• Teaming for Success• E-Business• Manufacturing on demand• Maintenance & Service• Direct vendor delivery• Supply Chain Mgmt• Diverse Mfg. Complex
CompanyA
CompanyB
PrivateCompany
CompanyC
DepotX
DepotY
DepotZ
PublicDepot
NuclearReactor
Foundry
5 AxisMil
Machine
Virtual FactoriesVirtual Factories
Producing Public and Private Sector PartsProducing Public and Private Sector Parts
Sharing Capability Through Enterprise Integration
41-17864 Page 42
Manufacturing InitiativesManufacturing Initiatives
• Diode Array Manufacturing
• Objective: reduce cost of laser diode from
$500 to $100 per diode bar
• Flexible Manufacturing of Microwave Vacuum Electronic Devices
• Objective: reduce manufacturing cost and integrate in
TWT manufacturing
• Thin Wall Superalloy Structural Casting
• Investment casting technology for propulsion systems
• Spray Metal Formed High Temperature Aluminum Alloys
• Potential replacement for Polymar Materiel Composites
(PMC) or titanium
• Laser Cladding as alternative to chromium electroplating
• Increased component repair and environmental friendly
41-17864 Page 43
LogisticsPerformance
andValue Chain
Weapon System Support
Value Migra
tion
W/S
Readiness
• Transportation
• Warehousing
•• SystemsSystems
• Network Engineering
• Advanced InventoryManagement
•• Total DemandTotal DemandChain ManagementChain Management
• Electronic Commerce
Toward Holistic SupportToward Holistic Support
• Manufacturing on Demand
41-17864 Page 44
AIRCRAFT DIAGNOSTICS & REPORTING
COCKPITDISPLAYS• Display Fault
Information
FAULT REPORTING
SUPPORTSYSTEMS• Support Mgmt• Supply Mx Data• Archive
FAULT MANAGEMENT
FAULT DETECTIONAND ISOLATION
INTEGRATEDMAINT SYSTEM• Aircrew Debrief• Trend Analysis• TOD Selection• Extended Diagnostics
DATA TRANSFERCARTRIDGE• In-Flight Fault
Reporting
AIRCRAFTINTERFACE• Portable Maint. Aid
MAINTAINER VEHICLEINTERFACE• Ground Level Access• Interfaces w/Maintainer
Success: Design for Supportability Success: Design for Supportability F-22 Seamless Data Flow
41-17864 Page 45
• Quality Parts on Time• 12 Month Warranty• Root Cause and
Corrective Action System• Field Service
Representatives• Vendor Management• Kit Distribution Site ANAD
• Parts Availability• Improved Reliability• Minimized Administration• Modernization Through Spares• Field-Depot-Supply Closed Loop• O & S Reduction
• Flexible Partnership• Reduced Obsolescence• Performance-Based
Declining Budgets Overhaul Variability AAN 80% Legacy Systems
Aging Fleet
Loss of Industrial Base Declining Battalion Size
Prose
Partnership to Reduce Operation and Support Cost of EnginePartnership to Reduce Operation and Support Cost of Engine
PROSE Addresses Coming Challenges
41-17864 Page 46
Health and Usage Monitoring System (HUMS)Health and Usage Monitoring System (HUMS)íí Used on foreign Military & Commercial HelicoptersUsed on foreign Military & Commercial Helicoptersíí Major Aircraft Companies use HUMSMajor Aircraft Companies use HUMSíí Monitors Major SystemsMonitors Major Systemsíí Reduces Maintenance TimeReduces Maintenance Timeíí Detects & Records TrendsDetects & Records Trendsíí Improves Fault IsolationImproves Fault Isolationíí Enables Corrective ActionEnables Corrective Action
beforebefore Damage OccursDamage Occurs
Install HUMS during production, modification & scheduledInstall HUMS during production, modification & scheduledsystem upgradessystem upgrades
Rotor-InducedRotor-InducedVibrationVibration
StructuralStructuralIntegrityIntegrity
TransmissionTransmissionDrive TrainDrive Train
HealthHealth
EngineEngineHealthHealth
HelicoptersHelicopters
41-17864 Page 47
Use Available Technology• Reduce manpower• Maintain war fighting capability
Smart Ship
Reduce Infrastructure … Improve Efficiency• Commercially available technology• Local community partnerships• Regionalized
Smart Base
Source: Navy
Technology EnablerTechnology Enabler
41-17864 Page 48
1946 19551955 B-52B-52
0 50 1000 50 100YearsYears
2040+2040+94+ years
Extended LifeExtended LifeNotional Projected LifetimeNotional Projected Lifetime
MicroelectronicsMicroelectronics
Source: DMEA
•• DoD ChallengesDoD Challenges–– Increased reliance on microelectronics (“Smart” weapon systems)Increased reliance on microelectronics (“Smart” weapon systems)–– Decreased market share (<0.5%)Decreased market share (<0.5%)–– Increased weapon system life cyclesIncreased weapon system life cycles–– Decreased operation and support fundsDecreased operation and support funds
•• Commercial Technology Drives the MarketCommercial Technology Drives the Market–– Profit/competition has led to rapid technology advancesProfit/competition has led to rapid technology advances–– Technology obsolescence can occur every 18 monthsTechnology obsolescence can occur every 18 months
•• DoD Microelectronic Obsolescence Solutions Must Include Reality ofDoD Microelectronic Obsolescence Solutions Must Include Reality of•• Commercial EnvironmentCommercial Environment
–– Flex with commercial developmentsFlex with commercial developments–– Ensure long term DoD needsEnsure long term DoD needs
(Technology/Vendors)
41-17864 Page 49
Common SolutionDramatically decreases O&S costs!
Common ProblemCommon Problem
Source: DMEA
41-17864 Page 50
Future Growth Through TechnologyFuture Growth Through Technology
• Information Systems– Battlespace Management, Situational Awareness, Combat ID
• C41– Secure Comm., Electronic Mods and Upgrades, Intel Systems, Targeting, Small Unit
Operations (SUO)
• Platform Automation– UCAVs/UAVs– Warfighter– Health Monitoring– VMS
• Space Asset Control and Exploitation– Space Based radar– Directed Energy Weapons
• Missile Defense• Deep Precision Strike and Navigation• Simulation and Training• JSF• Light Weight Track Vehicle• Electric Power Generation• Battery Technology• Data Fusion From Multiple Sources
41-17864 Page 51
Maintenance• Engineering / Technical• Remove - Repair - Replace
Systems Integration• Asset Visibility• Cost Tracking• Usage Data• Configuration Control• Forecasting• EC / EDI• Maintenance History• Global Community
Infrastructure
Reutilization / Marketing• Visibility• Re-utilization• De-Militarization• SCRAP
O&S Cost Reduction• Inventory Turn Time
- Reliability / Maintainability- Fill Rate- Availability- Pipeline Reductions- Inventory Reductions- Shop Flow Days
Process Integration• Requirements Determination• Procurement• Asset Tracking• Transportation• Inventory Control
Acquisition• Re-manufacturing• Modifications• Engineering Drawings• Spare Parts:
- Brokering- Electronic Store Front
• Manufacturing on Demand
Holistic Support - Holistic Support - Consolidated Service ProviderConsolidated Service Provider
41-17864 Page 52
SummarySummary
• Operating tempo is steady• Weapon systems are in service life extension• Modernization dependant on TOC reductions• Vanishing vendors and obsolence are impacting readiness• Radical reform needed
– Government industry teaming– ManTech funding increase– Streamlining contracting lead time
• Stay the course on current initiatives• Industry teaming - A requirement• Profit margin increase needed
– Responsibility/risk• Competitive sourcing a reality
Warfighting is UncompromisingWarfighting is Uncompromising
