1 I’ll discuss RISK, the escalating threats we’re experiencing, daily, that have led to the changes in AS9100. Next, I’ll review the importance and challenges of the new AS9100C requirements which when properly implemented can fortress our country’s technology and defense systems. In August 2011, our technology and risks are evolving rapidly.Concerns - infiltration of our deepest defenses: Everyday, counterfeit parts are revealed, embedded in our war vehicles and defense systems. • Our US Government Accountability Office (GAO) in a related preliminary study revealed that fake and defective parts have adversely impacted 40 percent of our DOD’s supply chain. • Suspect parts embedded in our missiles, rifles and vehicles, most of which appear to have originated from China. (Source: dailyTECH, Jason Mick (Blog) - June 17, 2011 2:00 PM) In addition to these national issues, we are dealing with escalating threats disrupting our daily lives and handling of our personal investments. In June of this year, Reuters published an account of a Cyber attack in which 360,000 North American CITIgroup cardholders had their accounts breached. • Today, hackers are seeking backdoors to the some of our nations most critical data. In May, Information Week reported that Lockheed Martin had suffered a ―massive cyber attack. ― • Occurred on a SecureID system previously considered to be virtually ― unhackable.‖ • The attack on Lockheed Martin’s data systems was targeted toward Trident missiles, the f-22 fighter and our DOD’s network of satellites. • Fortunately, Lockheed's swift detection of the attack enabled them to avert potential disaster. • (Source: Mathew J. Schwartz, Information Week – May 21, 2011) • Note program costs & deficits re: Tanker, Marine Expeditionary Fighting Vehicle (EFV) – cancelled due to cost and schedule I’ve just shared with you a few examples of the escalating attacks we are facing as Americans, today. These risks are disrupting our daily lives and stressing our national security. What does this mean to the evolution of our technology, systems and to unmanned vehicles in the US? Specifically, to the unmanned marketplace that hopes to attain access, at some point, to civilian airspace? And finally, how does the threat of these increasing attacks, impact the evolution of our nation’s mission critical manufacturing systems?
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1
I’ll discuss RISK, the escalating threats we’re experiencing, daily, that have led to the changes in AS9100. Next, I’ll review the importance and challenges of the new AS9100C requirements which when properly implemented can fortress our country’s technology and defense systems.
In August 2011, our technology and risks are evolving rapidly.Concerns - infiltration of our deepest defenses:
Everyday, counterfeit parts are revealed, embedded in our war vehicles and defense systems.• Our US Government Accountability Office (GAO) in a related preliminary study
revealed that fake and defective parts have adversely impacted 40 percent of our DOD’s supply chain.
• Suspect parts embedded in our missiles, rifles and vehicles, most of which appear to have originated from China. (Source: dailyTECH, Jason Mick (Blog) - June 17, 2011 2:00 PM)
In addition to these national issues, we are dealing with escalating threats disrupting our daily lives and handling of our personal investments. In June of this year, Reuters published an account of a Cyber attack in which 360,000 North American CITIgroup cardholders had their accounts breached.
• Today, hackers are seeking backdoors to the some of our nations most critical data. In May, Information Week reported that Lockheed Martin had suffered a ―massive cyber attack. ―
• Occurred on a SecureID system previously considered to be virtually ― unhackable.‖ • The attack on Lockheed Martin’s data systems was targeted toward Trident
missiles, the f-22 fighter and our DOD’s network of satellites. • Fortunately, Lockheed's swift detection of the attack enabled them to avert potential
disaster.
• (Source: Mathew J. Schwartz, Information Week – May 21, 2011)
• Note program costs & deficits re: Tanker, Marine Expeditionary Fighting Vehicle (EFV) – cancelled due to cost and schedule
I’ve just shared with you a few examples of the escalating attacks we are facing as Americans, today. These risks are disrupting our daily lives and stressing our national security. What does this mean to the evolution of our technology, systems and to unmanned vehicles in the US? Specifically, to the unmanned marketplace that hopes to attain access, at some point, to civilian airspace? And finally, how does the threat of these increasing attacks, impact the evolution of our nation’s mission critical manufacturing
systems?
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In 2011, it’s time to institute strong measures –
To make a preemptive strike.
There couldn’t be a better time to expand the tough regulations inherent in
AS9100, beyond the boundaries of aerospace to defense overall.
This new requirement is termed AS9100C.
As one would expect these new certifications are deep and will be tough to
implement in manufacturing.
To understand how that can be done, first you need to understand our issues in
dealing with risk.
Then we can review how product can be buildable within these requirements.
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4 common errors in risk perception
•Exaggerate rare risks – flying versus driving
•Unknown - riskier than the familiar – but we make errors in the familiar
because we get lazy
•Personified risks – tin whiskers has a name, but it takes time to become a
problem (the service life of a product may not be long enough for tin whiskers to
become an operational risk)
•Underestimate risks we control, overestimate risks we cannot control – ―we’ve
done it this way before and it worked just fine‖
These relate to product development, manufacturing, and final product use
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This is a metaphor for the development of many products and systemsIncomplete planning and lack of a direct view of the risks results in products not meeting deadlines or not working properly
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Just as there has been a revolution in manufacturing operations (e.g., lean),
there is now a:
A REVOLUTION IN RISK
The rise of AS9100C addresses risk in:
Design, Purchasing, Parts and Assembly
Let’s look at risk, specifically:
MANUFACTURING RISK
Is the product Buildable?
Will components meet design parameters?
Are components currently available?
Counterfeit risk?
Will product survive in the field?
Does the product fit the manufacturer capabilities?
Is the customer capable of investing in a relationship that results in a positive
outcome?
WHY THE MOVE FROM AS100B TO C?
Due to the need to expand the focus of risk management beyond Aerospace to
Defense
-------------------------------------------------
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AS9100C PROVIDES FOR THE:
•assignment of responsibilities for risk management
•The definition of risk criteria (e.g., likelihood, consequences, risk acceptance),
•identification, assessment and communication of risks throughout product
•realization
•identification, implementation and management of actions to mitigate risks
•that exceed defined risk acceptance criteria, and
•acceptance of risks remaining after implementation of mitigating actions.
--Risk: Defining a Manufacturing Process
Earlier we spoke about Benjamin Franklin’s quote which draws attention to the
importance of critical details at the finite level
(such as the enemy slaying a rider all for the want of a horseshoe nail).
Parallels can be drawn to the loss of troops from a plane crash due to a bad
component on a Printed circuit board failing the plane’s controls.
Like a nail on a shoe – AS9100 returns attention to each level of importance.
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Next it’s important to assess organizational maturity related to handling risks
and implementing effective management processes aligned with AS9100C
guidelines as shown here for:
(SCREEN 1) Organizational processes
(SCREEN 2) The drivers of processes, the organization’s culture, awareness,
training and delegation of responsibility
(SCREEN 3) Tools data and process metrics defined and implemented to
All Unmitigated High Requirement Risks and other reports available on an as
needed basis
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Finally the status of Risk Mitigation plans can be viewed and mitigated for each
department, ensuring that the required steps are followed and handled
efficiently.
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AS9100C enabling projects to be completed to task and on time, and most importantly keeping our War Fighters Alive.
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Axiom will be presenting two Press Talks and two Booth Talks at AUVSI that you see listed here. These presentations will also be available from Axiom’s website at the link you see on the lower portion of this slide.
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The financial crisis has reminded us of the valuable lesson that risks gone bad in one part of the economy can set off chain reactions in areas that may seem completely unrelated.
In fact, risk managers and other executives fail to anticipate the effects, both negative and positive, of events that occur routinely throughout the business cycle.
Their impact can be substantial—often, much more substantial than it seems initially.
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―Yet in 2000, when a lightning strike from such a storm set off a fire at a microchip plant in New Mexico, it damaged millions of chips slated for use in mobile phones from a number of manufacturers. Some of them quickly shifted their sourcing to different US and Japanese suppliers, but others couldn’t and lost hundreds of millions of dollars in sales.‖ --McKinsey Quarterly-Risk Practice, Eric Lamarre and Martin Pergler. October 2009
•A lightning strike and fire
•Millions of chips are damaged at a microchip plant in New Mexico
•Mobile phone manufacturers with no alternate chip source
LOSS = hundreds of millions of dollars in sales.
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Dynamic Risk Indicator:
•Sums all Identified Risk Scores (<=256)
•Calculated each time PID is accessed
•Program Risk Button shows Detail
•PM Responsible for monitoring and taking
•action if deemed appropriate
Axiom system contains a process to handle and fully calculate the cost of
ECOs.
The related project risks are then handled in the risk modules that were viewed
in the first portion of the presentation.
Robert Toppel holds a Bachelor's degree in Physics from the University
of Colorado at Denver.
Currently he is the President of Axiom Electronics and joined Axiom in
1991. Formerly, Robert served as the Engineering Manager of The
Tektronix Logic Analyzer Division. He co-founded Breeze Test
Instruments
Contact Information for the presenting organization: Axiom Electronics