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Proud to be 100% Employee Owned www.microcraft.aero

207 Big Springs Avenue Tullahoma, TN 37388

(931) 455-2617

Cybersecurity and Smart Manufacturing: Can they Co-exist?

SME Smart Manufacturing Seminar Dr. Kenneth W. Sullivan, P.E.

President/CEO February 16, 2017

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Proud to be 100% Employee Owned

My Academic Inspiration….

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• I am not a techie! • Presentation from a small business perspective. • I am not going to tell you what you want to hear! • You are probably not going to like what I have to

say! • I am probably going to rain on the parade!

Setting the tone…..

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Micro Craft History

• Founded in 1958 by craftsman Charles Folk

• Key provider of complex wind tunnel models and other specialty hardware – pioneers in CNC, EDM, etc.

• Rapid expansion in 1990s into space and technology markets

• Prime contractor and vehicle manufacturer and integrator for NASA’s X-43A and X-43C Hyper-X Programs

• After a brief period of ownership by an investment group, Micro Craft was acquired by ATK in 2003.

• In 2011, Micro Craft was acquired by its employees and became a 100% Employee-owned Small Business.

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Manufacturing Capabilities

• Celebrating 50+ years of experience in providing precision manufacturing to NASA, DoD, and OEMs

• Manufacturing – 57,000 sq. ft. facility – 3-,4-,and 5-axis milling – Large CNC lathe machining – Wire EDM, die sink EDM – ID/OD grinding – Metals, composites, ceramics, and exotic metals – Complex components, assemblies and integrated systems – Prototype research hardware – Electronics Lab and cable harness facilities

• Quality – AS 9100 Rev C and ISO 9001:2008 Certification – 2015 Boeing Silver Supplier – DPD (Digital Product Definition) and MBD (Model Base

Definition) Boeing Certified – Lockheed Martin Quality Select Supplier – NASA Small Business Contractor of the Year

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What makes Micro Craft Different?

1. Provides secure facility that has classified engineering and manufacturing capability.

2. Quality department in place to support critical and complex aerospace hardware component manufacture.

3. Broad customer base that requires Micro Craft to support “one of a kind” to high production, mix model manufacture in a firm-fixed price (predominately) and cost-plus fixed fee R & D and production markets.

4. Aggressively implementing (“baking in”) Cybersecurity requirements (NIST 800-171) in business processes and management systems.* Participating in MANTECH Securing American Manufacturing.

*Government needs to define!

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Can Cybersecurity and Smart Manufacturing coexist?

Back to the question at hand….

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What is Smart Manufacturing/Digital Transformation?

The digitization of manufacturing which: • Impacts every aspect of operations and the supply chain. • Technologies connect design, planning, production and

distribution . • Drive process improvements, reduce operational costs and

increase efficiencies. Related technologies: • Additive manufacturing • Lightweighting with advanced materials and composites • Automation • Industrial Internet of Things Reference: SME

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What is Cybersecurity?

Definition

• Cyber security, also referred to as information technology security, focuses on protecting computers, networks, programs, and data from unintended or unauthorized access, change, or destruction.

• Cybersecurity seeks to identify vulnerabilities, threats to those vulnerabilities and calculates resulting risk.

• Critical processes are thus identified as “crowned jewels” and protected when lean and cyber-risk policies implemented.

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• Unfortunately cyber security has come to depict a range of nefarious computer break-ins by shadowy hackers and nation states that: • Compromise the credit card accounts of retail store

patrons • Emails by notable politicians • OMB breach • Unmanned aircraft • Our national election system.

• As regulations have emerged, federal contractors have

been given little or no insight regarding achieving compliance. December 31, 2017 is the drop dead date for compliance with NIST 800-171.

Cyber Security/Compliance Obscurity

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Why This is Important?

From Brian Hughes’

presentation at 2015 NDIA

Systems Engineering Conference

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• Can smart manufacturing be implemented without requiring recertification of processes?

• Secure versus compliant?

• Cost of maintaining a secured facility (impacts ability to compete)

• Trying to compete in both a commercial and government environment

• Unknown cost of implementing Cybersecurity

Issues in the Defense Industrial Base

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Smart Manufacturing/Digital Transformation is: • Electrons accessible anywhere and everywhere • Internet of Things • Added degree of difficulty when trying to

comply with NIST 800-171 Cybersecurity is: • Off the grid • Protects intellectual property/defense secrets • THE LAW!

Dilemma of the DoD Supplier (as perceived)….

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• To date, only one OEM has contacted Micro Craft informing us of the upcoming requirement

• This DFAR requirement has the potential to negatively impact the DoD Industrial Base • Interpretation • How are suppliers certified? • Suppliers whose minority business base is DoD/Government may “walk

away” due to impact on overhead cost and their ability to compete in a commercial market

• Companies that perform classified work should have an easier time understanding and implementing the DFAR 800-171.

• At a recent OEM Quality Supplier Conference, the OEM stated they have been notified by a small number of suppliers (~10%) that they will no longer support their product due this requirement

• Opportunity for “cabin industries” to “help” SMEs with their compliance

Food for thought….

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Summary

• Those who live in an “electron" environment need to understand the realities of an “atom” world (inspired by Dr. Michael Grieves).

• Suppliers who want to work for the government must

determine how to balance the investment of limited resources between cybersecurity and advanced (smart) manufacturing.

• The cybersecurity posture of smart manufacturing technologies will determine if they can be implemented to fulfill government contracts.

• Cybersecurity will take precedence if your primary

customer is the US Government (private sector TBD).

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Thoughts?

Questions?

Comments?

More Cow Bell?

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"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." President Theodore Roosevelt "Citizenship in a Republic," Speech at the Sorbonne, Paris, April 23, 1910

The Critic

Cybersecurity and Smart Manufacturing: Can they Co-exist?additivemanufacturingseries.com/wp-content/uploads/2017/02/sulliv… · Cybersecurity and Smart Manufacturing: Can they Co-exist?

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