We live in a volatile world

51
F E S We live in a volatile world Vice President & COO [email protected] CHUCK GRAY

description

We live in a volatile world. Chuck Gray. Vice President & COO [email protected]. 691. 621. DoD Operating & Support Costs vs. Investment . Lowest investment share since the Korean War. 1950 – 2010 Average: 36%. Tension between O&S and investment will reach historic proportions. - PowerPoint PPT Presentation

Transcript of We live in a volatile world

Page 1: We live in a volatile world

FES

We live in a volatile world

Vice President & [email protected]

CHUCK GRAY

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FES

Aircraft Production 1999-2018Rough Times After The First Civil/Military Upturn In 25 Years

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '180

40

80

120

160(Market Value in 2009 $ Bns)

Fighters Bizjets RotorcraftMil i taryTransports/Trainers/Other Jetl iners/Regional AC

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691621

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FES0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

DoD Operating & Support Costs vs. Investment

% o

f DoD

BA

(Incl

udes

OC

O)

1950 – 2010Average: 36%

Tension between O&S and investment will reach historic proportions

Lowest investment share since the Korean War

O&S (MILPERS plus O&M)

Investment (RDT&E plus Procurement)

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BALANCING QUALITY, SAFETY, RISK AND COST IN Volatile SPACE AND DEFENSE MARKETS

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Program risks associated with an

“up & down” business scenario

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Hurry up, you are behind schedule

• DESIGN PROGRAMS• Shortcut requirements analysis: DESIGN RE-SPINS• Compromise reliability / maintainability / availability analysis: REDUCED SUPPORTABILITY• Reduce scope & content of Systems / Hardware / Software Peer Reviews: MORE RE-SPINS• Shortest lead time becomes principal parts selection criteria: INCREASED OBSOLESCENCE & COUNTERFEIT PARTS RISKS• Hardware – Software trade-off studies scope reduced: PRODUCT DESIGN

COMPROMISED• Reduced emphasis on Design for Manufacturing & Test: PRODUCTION/TEST REWORK

• PRODUCTION PROGRAMS• Shortcut work instruction preparation time: INCREASED “DO OVERS”• Compromise production training: INCREASED SCRAP & REWORK• Reduce rigor of first article / first build reviews: JEOPARDIZE PRODUCT

INTEGRITY/SCRAP/REWORK• Focus on delivery VS first time quality: MISSION FAILURE, INCREASED CUSTOMER

REJECTIONSACROSS THE BOARD RISK TO SYNERGY

“CORNERS”

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SLOW DOWN --- THE PROGRAM IS SLIPPING

• Design a ROLEX VS the TIMEX that the customer ordered: costs, lead times, producibility impacted

• Utilize science experiments to solve a problem requiring simple analysis

• Retain people on the program where ROI is low• Introduce production changes that actually reduce producibility

& testability

ANOTHER DAY ON THE PROGRAM IS ANOTHER DAY OF COST!

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Subcontractors caught in the middle• Subcontract reduction/terminations/extension• Delayed customer awards = Compressed

Subcontractor Cycle Time

• Extended material/parts lead time• Increased parts materials/cost: Building to

ORDER VS Building to STOCK

“SUBCONTRACTOR”

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QUALITYSAFETY

DELIVERY

COST

CULTURE, ROBUST PROCESSES,

LEADERSHIP

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A Native American,Woman-Owned Small Business

29 YEARS OF CUSTOMER-FOCUSED EXCELLENCE

IN ELECTRONICS ENGINEERING DESIGN AND MANUFACTURING

High Reliability Manufacturing

Stillwater

86,500 Sq FT Facility

A SMALL BUSINESS PERSPECTIVE

Brenda Rolls

President & CEO

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FY10 Revenue: $27.8M

D&B Rating: 4A1

Total Team Strength:

154

Support17%

ENG43%

MFG23%

PROFS

17%

2006 2007 2008 2009 2010 $-

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

Our Customers Our People

employeesREVENUE

CUSTOMER, PEOPLE & performance

Boe-ing

52.0%

Lock-heed

Martin22.0%

Ball12.0%

NSWC9.0%

Northrop Grumman

3.0%L3

0.5%Others1.5%

2006 2007 2008 2009 20100

50

100

150

200

99 95119

138 150

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UAS Programs

Business Programs

Maritime Programs

Aircraft ProgramsSpace and Missile Programs

SB-4229A(V)/SP

Radar Switchboards

SB-4229

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Certifications Awards & Recognition

• Lean Manufacturing

• MIL-I-45208

• MIL-Q-9858

• ISO 9001-2000

• AS9100

• JSTD-001

• NASA 8739.1 - .4

• Boeing Gold Supplier

• Northrop Grumman Gold Supplier With 3 World Class Team Awards

• Boeing Supplier of the Year 2001, 2005, 2009

• Lockheed Martin Star Supplier

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Enabling infrastructure -AS9100-

FES Corporate Quality PlanFES-QP-1

FES Quality Systems ManualFES-QSM-1

Measurement, Analysis and ImprovementSection 8.0

Product RealizationSection 7.0

Resource ManagementSection 6.0

Management Responsibilities

Section 5.0

Quality Management

SystemsSection 4.0

Control of DocumentsFES-QSP

4.2-2

ManagementReview Input

FES-QSP5.6-1

TrainingAssessment Delivery and EvaluationFES-QSP

6.2

Product Quality

PlanningFES-QSP

7.1-1

PurchasingFES-QSP

7.4Return

Authorization ProcedureFES-QSP

5-2-1

Measurement, Analysis and Improvement

FES-QSP8.1-1

Non-conforming Material/Service

ReportingFES-QSP

8.3-3

•3rd Party Certified by NQA•Last Audit March 2011•Score 1000 out of 1000

First Article Product Validation & Verification

Proof of the

Pudding

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Integrated Enterprise Processes

Corporate Vision

Customer Contract

Requirements

Quality Policy Goals ,

Program Management

Guidelines

ISO Management Responsibilities Process 5.6-1

• Program Plan

TechnicalDocumentation

Sub-Tier Supplier

Management

Hardware Development

Software Development

GFE/CFE Control

Quality Plan

Repair/Support Plan

Product Realization -Manufacturing -Test

Budget / Schedule

Configuration Mgt Plan

Pre Bid Risk Assessment &

Bid/No-Bid Decision

Proposal Preparation

Process 7.2-1-2

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• Monthly Program Performance reviews with Executive Management – Earned Value and Risk Assessment– Technical, Delivery, Schedule, and Cost Performance

In-Depth Performance Reviews

Program Team Performance Measurement

Daily Program Task Status

Weekly

Program Team Meetings / Performance Review

PM Updates Program Schedule, Estimates to Complete, &

Earned Value

Program Performance Review with Executive Management

Program Performance/Risk

Business Area Performance Assessment & Resource

Analysis

Weekly Customer Telecons

Monthly

Continuous Customer Interface

Quality Performance

Supplier Performance

Financial Performance

Contracts Performance

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Product Assurance Network

Corporate Quality Goals

GUIDELINES REQUIREMENTS TOOLS APPLICATIONS PERFORMANCE ASSESSMENT/

FEEDBACK

Departmental Goals

Customer Specifications

MIL-SPECS

Contractual Requirements

Process Specifications

ISO Documents

Process Training

SPC

CAB

MRB

TQM's

Prog Review

BA Reviews

Vendor Rating

Semi-annual Mgt Review

Pivot Table

Program Mgt System

Contract Mgt System

Supplier Mgt

Internal Process Audits and Validation

Pareto Charts

Process Improvement

Process Analysis

Q-Codes

Bench-marking

Audits

Metrics

Customer Feedback• FES-QP-1

• FES Quality Plan

8.1-28.5-2-1

8.3-2

8.1-5

5.6-1

5.6-1

7.4-1

5.6-1

7.4-1

8.2-1

5.6-7

7.1-1

7.2-1

• FES-QSP-

8.5-2-1

8.2-1

5.6-1

• FES-QSM-1 • FES Quality

Manual

• FES-QSP -7.2-2

• FES-QSM-1 • FES Quality

Manual

• FES-QSP-7.2-1

7.1-1

7.2-2

7.1-1

7.4-3

8.5-1

• FES-QSP- 8.5-2-1

8.5-2-1

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CORE PROCESSES

• Design

• Material Acquisition

• Manufacturing

• Product Support

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• Systems analysis• Design Rigor• Peer Reviews• Systems testing, Validation, Verification• Configuration Management and Documentation• Technology innovation and product enhancement

Tomorrow

Yesterday

Today

Subsystems/Product/Systems Engineering

design

Contract Award

KickoffMeeting

System Requirements

Review

H/W & S/W Requirement

Analysis

Analysis:Reliability,

Producability, Maintainability,

Availability

Parts and Equipment Selection

Producibility Integration

Preliminary Hardware

Design

PreliminarySoftwareDesign

Peer Reviews

PreliminaryDesignReview

Part Procurement (Production)

ProductionRelease

Drawings/ATP

Critical Design Review

PeerReviews

Lessons Learned Capture/

Application

Design Qualification

Testing

Informal Functional Verification

Testing

Hardware and

Software Integration

Prototype/Hardware

MFG

Software Code and

Test

Transition to Production Planning

Drawing Release

MFG Readiness

Review

Test Readiness

Review

First Article Build/

Qualification

Integrate Lessons

Learned into MFG

Processes

Equipment MFG

(Production)

Acceptance Testing

Physical Config. Audit

Functional Config. Audit

Packaging and

Shipment

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• Develop Bill of Materials

Generate Purchase Request

Request for Quotes

•Issue Purchase Order

•Monitor Vendor Performance

•Receive • Inspect/Test•Prohibited Materials

•Counterfeit parts

•Stock

CONFIG MGR MATERIALS ENGINEER QUALITY ENGINEER

NO

YES

NO Acceptable quotes

YES

Supplier Performance

•Certified•Qual-Deliv•Special Certs•Source Inspec

•Traceability /•Sources•GIDEP•Screen/Test

PROJ ENGR

•Requirements Analysis

CUSTOMER REQUIREMENTS

Product Integration /

Documentation

PROGRAMTEAM

PGM/PURCHASINGTEAM

PURCHASINGTEAM

Identify Alternate Parts

PartsObsolete

Customer Approval

PR

Best Value Award

Vendor Selection•Approved Vendor List

•Past Performance•Process capability•Customer directed

YES

NO

NO

YES

PURCHASINGTEAM

PGM/PURCHASINGTEAM

MATERIAL MGT

PROGRAM MGR

Start

Turn-key material acquisition process

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Process 1: Stencil Print

Process 3: Reflow

Process 4: Cleaning

Process 2: Automated Placement

Process 8: Install Thru-

Hole Components

Process 9: Solder Connectors

(and Thru-hole Components)

Process 5:AOI

Process 6: Touch-Up

Process 12: Break Panel, &

inspect individual boardsProcess 10:

Cleaning

Process 7: Lead Forming (as required)

Mirtek MV-3LP AOI

DEK Horizon 03L My Data My12 Heller 1809 KM3 AQUEOUS Tech Trident III

AQUEOUS Tech Trident III

Manufacturing process flow

Selective Soldering Machine

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Processes without organizational champions & cultural buy-in are a

house of cards ready to Fall

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Developing a corporate culture of commitment & process optimization

• Leadership Integrity and Organizational / Employee Commitment Beyond Reproach

• Foster Transparent Communication & Mutual Respect in Both Directions Throughout the Company

• Welcome New Ideas

• Specific Goals and Accountability Established Annually

• Resources Allocated to Achieve Quality Goals in Company Operating Plan

• Clear, Timely and Accurate Performance Feedback

• Fruits of Success Shared with All Who “Make it Happen” on a Fair & Equitable Basis

• Lessons Learned are Captured & Re-deployed

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Integrated Product Team Approach– Team includes CUSTOMER, Program Engineering, Quality Test, Manufacturing,

Configuration Mgt, Sub-tier suppliers– Open Communication, Proven Process Deployment, Risk Mitigation, Metrics Based

Performance Assessments• Nimble and Responsive to changing customer requirements Monthly Program Performance reviews with Executive Management

– Delivery, schedule, and cost performance & Lessons Learned

• CUSTOMER BENEFITS

NO SURPRISES– Performance to Plan

Reduced customer oversight costs

Customer Focused Program management

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Key Quality Metrics• Line of Balance• Customer Satisfaction• On-Time Customer Deliveries• Customer Quality Acceptance Rate• Warranty Returns• Nonconformance Requests by Area• Customer Complaints• Supplier Corrective Actions• Scrap• Rework and Repair Labor• Supplier Performance• Risk

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CLIN7 ProductionPCU Line of Balance

7-1 7-2 7-3 7-4 7-5 7-6 7-7 7-8 7-9 7-10 7-11 7-12 7-13 7-14 7-15 7-SP 7-SP 7-SP

PCU 86706-507-11 % SN 200 SN 201 SN 202 SN 203 SN 204 SN 205 SN 206 SN 207 SN 208 SN 209 SN 210 SN 211 SN 212 SN 213 SN 214 SN 215 SN 216 SN 217

On Dock Date/ Huntsville100% 8/27 9/3 9/23 9/23 10/24 11/20 10/24 11/20 10/24 2/9 11/20 12/12 2/9 12/12 1/12 3/9 3/9 3/9

CSI 99%                                    

Final Test 95%                                    

Environmental Test 90%                           11/25        

Conformal Coat 85%                   9/23                

Confidence Test 65%                         11/6          

Hand Solder Components

60%                           

8/28 10/1 11/6 11/6

Solder Reflow 25%                                    

Kit Inspection 10%                                    

Kitting 5%                                    

PWO Complete                                      

Other Issues                     D     E   C C C C

PCU Shortages 1) JANTXV1N5806US Diode qty 38

Flag Impact Issue Action Plan

A     

B OVD on hold until resolved Confidence test during continuity Alternate part needs wider limit

in test software

C Ten per CCA, parts will have to be hand soldered PCU #1 Insufficient parts provided by Boeing Customer to provide Exp.

12/10

D Must go through review board Nickel Plating lifted with conformal coat mask

NCR to Boeing MRBE Pending Confidence test failure Troubleshooting

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FY 2010 Customer Satisfaction Score (Company Wide)

Customer Satisfaction Weighted Formula

.810 + .988 - .002 x 100 = 89.90 % 2

Proposals Won = 86Proposals Lost = 20Total Proposals = 106Wins ÷ Total Proposals Submitted = Proposal Win Rate Proposal Win Rate:

81.0 %Delivery Rate: 98.8 %Warranty Returns = 4Units Shipped = 2035Warranty Returns ÷ Units

Shipped X 100 4

÷ 2035 X 100 = 0.002%

Proposal Win Rate + Delivery Rate2

Warranty ReturnsUnits Shipped

= Satisfaction ScoreX 100

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Boeing updated the B.E.S.T. for 02/15/2011

Huntington Beach: Quality: 15 each received with no rejects                                                                   Quality: Gold Delivery: 15 each delivered on time                                     Delivery: Gold

Huntsville:Quality: 122 each received with no rejects                                           Quality: Gold Delivery: 122 each delivered on time Delivery: Gold St. Louis:Quality: With Complexity Factor:    99.99%                                                              Quality: SilverDelivery: 1013 each delivered on time                                                                   Delivery: Gold

 Wichita: Quality: With Complexity Factor: 100%                                                                    Quality: GoldDelivery: 86 each delivered on time                                                                      Delivery: Gold

Composite & BDS RatingQuality Rating: Alternate Quality Rating  100%                                                       Quality: GoldDelivery: 1236 each delivered on time Delivery: Gold  

Northrop Grumman Oasis Rating Quality: Gold Delivery: Gold DLA Ratings Updated on 2/22/11

Delivery Quality # Of DLA CLINs Vendor DLA Score Average DLA Score

100 100 15 100 91.7

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Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-110%

20%

40%

60%

80%

100%95%

97%

95%97%

98%

94% 95% 97% 99%96% 95%

93%

FIRST PASS YIELD

PCB First Pass Yield PCB First Pass Yield Target=98%

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Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-110.00%

0.02%

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

0.16%

0.18%

0.20%

0.19%

0.07%

0.05%

0.07%

0.02%

0.10%

0.07%

0.16%

0.06%

0.10%

0.06%

Burdened Rework Percentage vs. Burdened Mfg Labor Percentage

Series1 Linear (Series1)

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Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-110.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

0.32%

0.12%

0.02%

0.59%

0.16%

1.72%

0.07%0.11%

0.20%

0.05%0.06%

0.19%

Burdened Scrap Percentage vs. Burdened Material Percentage

Series1 Linear (Series1)

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Supplier performance

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

95.00%

100.00%

On-Time DeliveryTotalGroup 1Group 2

On-

Tim

e %

Jan-0

9Fe

b-09

Mar-09

Apr-09

May-09

Jun-0

9Ju

l-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-1

0Fe

b-10

Mar-10

Apr-10

May-10

Jun-1

0Ju

l-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-1

1

90.00%91.00%92.00%93.00%94.00%95.00%96.00%97.00%98.00%99.00%

100.00%

QualityTotalGroup 1Group 2GoalAc

cept

ance

%

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Enclosure Delivery Quality12 Month Avg = 15%

No Failures

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Supplier RatingsFrontier's Supplier Quality Rating System is based on a 9 point system. It is divided into three categories,

which will be the basis for a supplier remaining on the Approved Suppliers List.

GOLD LEVEL 9 points Supplier Partner - Exceptional supplier performance, exceeding expectations.

SILVER LEVEL 8-6 points Preferred Supplier - Very good supplier performance, meeting or exceeding expectations.

BRONZE LEVEL 5-3 points Qualified Supplier - Satisfactory supplier performance, meeting expectations.

YELLOW LEVEL 2 points Marginal Supplier - Marginal Supplier performance, supplier is not meeting expectations.

RED LEVEL 1 - 0 point Unsatisfactory Supplier - Unsatisfactory supplier performance, clearly fails to meet expectations. Supplier is placed on Probation and has 60 days to implement corrective action. Unacceptable performance requires mandatory performance review.

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Program Risk Assessment

LOW MEDIUM HIGH

ITEMIZED

    Risk Level  

Likelihood

  

5            

4            

3     5      

2 4, 6 2,3 1,7,8      

1              1 2 3 4 5      Impact/Consequence  

    Risk   Estimated Value   Likely Value

Item Phase Score Risk Eng Mat Mfg Total Prob Eng Mat Mfg Total

      TOTALS $ 85,000 $ 85,000 $ 25,000 $195,000   $ 27,500 $35,500 $ 8,500 $ 71,500 1 Design 6 New Electrical Design $ 25,000 $ 10,000 $ 5,000 $ 40,000 30% $ 7,500 $ 3,000 $ 1,500 $ 12,000 2 Design 4 New Mechanical Design $ 5,000 $ 5,000 $ 1,000 $ 11,000 30% $ 1,500 $ 1,500 $ 300 $ 3,300 3 Design 4 New Test Set Design $ 10,000 $ 2,500 $ 1,000 $ 13,500 30% $ 3,000 $ 750 $ 300 $ 4,050 4 Mfg/Test 2 New Work Instructions $ 2,500 $ - $ 2,500 $ 5,000 30% $ 750 $ - $ 750 $ 1,500

5 Mfg 9 Part Procurement to Meet Schedule $ 10,000 $ 50,000 $ 5,000 $ 65,000 50% $ 5,000 $25,000 $ 2,500 $ 32,500

6 Mfg/Test 2 New Assy / Test Fixtures $ 2,500 $ 2,500 $ 500 $ 5,500 30% $ 750 $ 750 $ 150 $ 1,650

7 Test 6 Unit Failure to Meet Requirements $ 25,000 $ 10,000 $ 5,000 $ 40,000 30% $ 7,500 $ 3,000 $ 1,500 $ 12,000

8 Mfg/Test 6 Assy/Test Error During Production $ 5,000 $ 5,000 $ 5,000 $ 15,000 30% $ 1,500 $ 1,500 $ 1,500 $ 4,500

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DoD Nunn-Perry Awards

Northrop Grumman World Class Team

AwardsBoeing Supplier of Year

Awards

MILI 45208

MILQ 9858

Lean Journey Begins

ISO 9001-1994

ISO 9001-2000

USN BMPAudit

AS9100

NGST Gold

Supply Chain Mgt System

ERP

1989 1994 1999 2000 2001 2005 2006 2008 2009

A journey of continuous improvement

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challenge• Forced re-design of the F-18 E/F Engine Fuel Display

due to LCD supplier Bankruptcy o Hardware / Software

• No break in productiono Required 75% reduction in re-design time

• Focus on 1st Time Quality to Reduce Production Cost

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approach• Formed integrated FES – Subcontractor – Customer

Re-design team• Opportunity to Integrate Lessons Learned

o Designo Producibility

• Integrate EFD production team into Design for Manufacturability (DFM) and Design for Test (DFT)

• Formed a Joint FES – Customer – Subcontractor accelerated improvement team o First Time Qualityo Reduce Contract Award Delivery Cycle Time

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Reduce Order to First Delivery Cycle Time

Boeing PO Award

FES Critical Path

Sub Critical Path

FES & Sub Critical Path

Initial State

PO Award to

Sub 8 wks

All material received

FES 25 wks

All material received

Sub 30 wks

Sub 1st Delivery

56 wks

FES 1st Delivery 76 wks

12wks

34 wks

FutureState

38wks2 wks

18 wks4 wks

CurrentState

18wks

41 wks

48 wks

20 wks

Supply Chain LEAN Deployment

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Result

Achievements: Design Time Cut -75%

MTBF Improved +33%

Price Reduced -48%

F/A-18E/F Engine Fuel Display Redesign (Tech Refresh)

New EngineFuel Display

New Multi-Purpose Color Display

Customer Recognition:

Boeing’s Avionics Supplier of the Year

2001

New Up-FrontControl/Display

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Follow-on EFD cost optimization

• Price established during negotiation of MYP-2 pricing

• LEAN Quality Initiative

• FES tookOver glass

Ruggedizationfrom GE

• STE Upgrade

• Improved sub

Test process

• ReducedESS Req’t

• Eliminated PRAT

13.8%

20%• FES internal process enhancement initiatives

drove additional cost reductions

27.3%• Boeing committed to participation

in the FES CRI resulting in reduced testing & inspection

FY09

(FR

P-10

)PR

ICE

(MYP

-2, 5

th Y

r)

Prev

ious

CR

IA

ctio

ns(U

nfun

ded)

Initi

alN

egot

iate

dM

YP-3

Pric

e

MYP

-3 R

epric

e,10

% In

cent

ive

(No

CR

I)

Fina

l MYP

-3N

egot

iate

d Pr

ice

(With

CR

I)

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challenge

• Transition of Production for SM-3 guidance unit circuit cards from Boeing to FES without a break in production

• Subsequent to Production / Test Readiness Certification, transfer of High-Reliability material responsibility to FES

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approach

• Full FES process verification withboth Production & Test Readiness Reviews requiring Government Prime and Boeing approval prior to FES start

• Integrated FES / Boeing Customer & Subcontractor Product Team formed to optimize production transitions

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ABMD Production Transition To FES

Solder J7 ConnectorInstall & Solder Individual

Components to Board

Install Connectors & SpacersUsing Fasteners &

Kapton Tape under J1

Guidance Processor (GP) Components

Kitting

GP ComponentsKit Inspected

Thermal Bond

Stencil Print Automated Placement

Assemble per Drawing:

GP CCAFunctional Testing

GP ModuleConformal Coating

GP Module ESS Thermal Stress

Screening

GP ModuleFunctional

TestingGP Module Ready for CSI / Shipping

Mass ReflowSolder & Clean

Install Press Fit Connector

Component Lead Form & Tin

Mechanical BondComponents

Final CleaningCleanliness Test

Vacuum Bake

Clean & Vacuum Bake PWB

GP ModuleInspection

PAL Programming

Automated Optical

Inspection

GP Assembly Assembly Inspection

AOI

FES Value Added

Color Coding:

Customer Production Line Certification

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FES Production Facility Upgrade Program

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Assembly

PCB

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Solder Separation Fishbone People Processes Equipment

Material Measurements Environment

Solder Separation

Assembly Technician

sMachine

Operators

Cleaning

Cross sectioning

Solder touch-up

Pre heating

Soldering

PWB

Solder

X-ray Inspection

Humidity

Lighting

Air quality

Methods/Procedures

Calibration

Work Instructions

Safety PrecautionsIndicates that this has been eliminated as a cause of the problem

Solder Temperature

FluxConnector

Temperature

Pre-tinning

Application Speed

Solder Pattern

Solder wave height

Flux Application

Heating Rate

Cooling Rate

Solder purity in nozzle

Specification Requirements

Temp Sensors

Mechanical Clearance

Batch Cleaner

Functional Test

Equipment Setup Selective Solder Machine

Indicates that is under current scrutiny

Page 49: We live in a volatile world

FES

Counterfeit Parts Mitigation Process Flow

Page 50: We live in a volatile world

FES

Roadblocks to watch forInadequa

te Training

Tackling Too Much too early

No Link to Company

Objectives

No Incentive

Dirty fingernail

gang looses clout

Diverging goals and objectives

Poor Communication

Leadership Buy-In

Backsliding

Page 51: We live in a volatile world

FES

A Closing Thought

If the rate of change outside your business

exceeds the rate of change inside your business,

the end is in sight.

-Jack Welch

Profitability

PRICE

Pre Lean Post Lean

Cost Cost

ProfitProfit

Customer Price Target