Date: 24 April 2012 Defense Sector Downturn: An Army Aviation and Missile Perspective of Budget Cuts on the Raw Material Sector Presented by: Robert Olson Aviation Industrial Base Team Lead U.S. Army Aviation and Missile Research, Development, and Engineering Center Presented to: American Metal Market Aerospace Materials Conference Approved for public release; distribution unlimited. Review completed by the AMRDEC Public Affairs Office 20 Apr 2012; FN5799.
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Presented to: American Metal Market Aerospace Materials ... · Aerospace Materials Conference . ... OH-58D Kiowa Warrior- ... Rotorcraft production programs are fully funded with
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Date: 24 April 2012
Defense Sector Downturn: An Army Aviation and Missile
Perspective of Budget Cuts on the Raw Material Sector
Presented by:
Robert Olson Aviation Industrial Base Team Lead
U.S. Army Aviation and Missile Research, Development, and Engineering Center
Presented to:
American Metal Market Aerospace Materials Conference
Approved for public release; distribution unlimited. Review completed by the AMRDEC Public Affairs Office 20 Apr 2012; FN5799.
2 FileName.pptx
Defense Sector Downturn: An Army AVN and MSL Perspective
AMCOM’s Aviation and Missile Industrial Base is managed under a TRIBE Philosophy
SMDC/DLA
JIBWG
AR700-90
JACG
Inter Service Support
Agreements
NATIBOAgreements
IndustrialCapability
Assessments
Spare Part Sustainment
Manufacturing Technology
Defense Production Act
Title III
Defense Priorities & Allocation System
Supply Chain Analysis
3 FileName.pptx
AMRDEC GOAL: Sustain the war fighter by ensuring the integrity of the products we buy, backed by a viable industrial base while maximizing life
cycle cost effectiveness.
Right Part – Right Cost – Reliable Source
Increased Competition
Rapid Prototyping
Parts Conformance
New Source Approvals
Technical Data Rights
Reliability Improvements
Obsolescence Mitigation
Cost Reduction Programs
Lead Time Reduction Initiatives
Improved Spares Support
Defense Sector Downturn: An Army AVN and MSL Perspective
Spare Part Sustainment
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Javelin
PATRIOT
GMLRS
Gray Eagle
Aviation and Missile Command Weapon Systems
Defense Sector Downturn: An Army AVN and MSL Perspective
Defense Sector Downturn: An Army AVN and MSL Perspective
“Defense companies that survived broad
cuts in the Pentagon’s fiscal 2013 proposal are likely to see their
programs continue over the next five years, baring any
additional reductions (i.e. sequestration).”
- Defense News 12 March 2012
0
1
2
3
4
5
6
7
8
9
2011 2012 2013 2014 2015 2016 2017
Curr
ent$
in B
illio
ns
Army - Aircraft and Missile Procurement (Budget Authority)
Army - Aircraft Procurement Army - Missile Procurement
0
100
200
300
400
500
600
700
800
2011 2012 2013 2014 2015 2016 2017
Curr
ent$
in B
illio
ns
DoD Topline (Budget Authority)
DoD Base DoD OCO
Source: DCMA – Industrial Analysis Center, DOD FY13 Green Book
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Value stream analysis produced 16 areas for improvements & action teams are addressing each of these areas
– On-hand inventory reduction – Depot inventory reduction – Repair program analysis – Invalid due-ins – Back order reduction – Unliquidated obligations – Administrative lead time reduction – Production/repair lead time reduction – Repair cycle time reduction – Acquisition strategy & sourcing – Metrics – Strategic communication – Forecast accuracy – Training – Product verification audit – Demil process
Partnering with Army Materiel Command on supply chain transformation initiatives
– Supplier relationship management – Forecasting – Sales & operations planning – Strategic sourcing – Metrics – Human capital
Supply Chain Initiatives
BOEING CH-47 Blade R&O
Process
Receive Damaged Blades
C/T 2 hoursW/T 2 hoursP/T 4 hours
Employees1st shift – 2 2nd shift3rd shift
-Receive blades in can-Remove blades form can- Ready blade for weight
Shipping & Receiving
DCMA
C/T 1 hourW/T 4 hoursP/T 5 hours
Employees1st shift – 12nd shift3rd shift
-Perform receipt insp- ID missing components- Weigh blade- Process paperwork*ID asbestos (if asbestos is found blade will be sent off site to MARCOR 2-4 weeks
Weight Station
C/T 4 hoursW/T 4 hoursP/T 8 hours
Employees1st shift - 22nd shift3rd shift
- Remove end cap- Remove weights
* Some weights are corroded and can take 1-2 days for removal. * On occasion weights are so badly corroded that they must be removed at a machining center, taking 1-2 weeks.
Weight Removal
Boeing CH-47 Rotor Blade Repair Process
C/T 6 hoursW/T 24 hours P/T 30 hours
Employees1st shift - 82nd shift3rd shift – 5
- Remove liner & potting from root end * Only performed on 3rd shift
30 potential repair tasks / 16 tasks will requires UT inspection prior to moving on to next repair. See page 2 for break down of repair tasks.
Repair & Overhaul
C/T 10.5 hoursW/T 24 hoursP/T 34.5 hoursFPY – 98%
Employees1st shift 2nd shift - 13rd shift – 1
Lag Damper- prep & load winder- Wind- Cure
Trim Tab – clean & prep- apply adhesive- apply to blade- tape to hold in position- apply heater- cooler
Trim Tab & Lag Damper
C/T 12 hoursW/T 12 hoursP/T 24 hoursFPY – 98%
Employees1st shift - 22nd shift - 13rd shift
- Prime- Paint- Stencil- Cure- Prep for transport to whirl tower
Paint
C/T 168 hoursW/T 48 hoursP/T 216 hoursFPY - 85%
Employees1st shift - 82nd shift3rd shift – 5
- Teeter- Whirl - Repair- Teeter- Whirl- can & prep for shipment
Whirl Tower
4
1
0
10
12
0
0
29
0
6
1720 in-process9 waiting
3 In-process3 waiting
2 hours
2 hours
4 hours
1 hourVA - C/T
NVA - W/T 24 hours
6 hours
48 hours
4 hours
4 hours
4 hours
24 hours
8 hours
0 hours
8 hours
0 hours
4 hours
120 hours
140 hours
24 hours
10.5 hours
12 hours
12 hours
48 hours
168 hours
C/T= 367.5 Hrs
W/T = 298 Hrs
P/T= 665.5 Hrs (27.72 work days)
C/T 14 hours per day x 10 days (2 weeks)W/T 24 hours per day x 5 days (1week)
Boeing Reported Time 450 calendar days
318 work days
WIP
Assumption that long repair time blades are what we saw waiting in the inspection area during our Nov 2010 trip. This could also account for the significant time difference between process map and what Boeing Reported.
C/T – Cycle (touch) Time W/T – Wait TimeP/T – Process Time
Defense Sector Downturn: An Army AVN and MSL Perspective
Goal: 30%
Inventory Reduction
Budget Savings Obtained Through Improved Processes
9 FileName.pptx
Supply Chain Process Improvement Activities
Defense Sector Downturn: An Army AVN and MSL Perspective
Blade BuildHeel Process Kaizen
Blade OverhaulPrimeVSM
Whirl TowerVSM
Blade ShippingKaizen
Blade AdminVSM
Ti Cap VSM
In WorkIn Planning CompleteTBD
NCAD
Blades from LARS
CommercialOverhaul
New BladeEnterpriseMapping Activity
Depot Overhaul
Ti SupplierVSM
Ti SupplierKaizen
ShippingKaizen 2
• Supply Chain Mapping
• Lean Six Sigma
• Buffer Inventories
• Vendor Managed Inventories
• Material Substitution
• Shared forecasts
• Vendor Roundtables
10 FileName.pptx
What does this mean to Raw Material Suppliers? • Rotorcraft production programs are fully funded with fleet size
increasing slightly through 2017.
• Army Aviation and Missile ALT and PLT Process Improvement efforts will shrink the spare part inventory, but not demand requirements.
• Current weapon systems are mostly based upon old material specifications with limited sources of supply.
• As new systems are developed, industry must assist in promoting newer material insertion.
Defense Sector Downturn: An Army AVN and MSL Perspective
Raw material demand is expected to be Impacted
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Summary Aging platforms and few new start programs on horizon.
Extended lifetimes for current rotorcraft programs.
High OpTempo (especially Rotorcraft sector) is expected to continue and is leading to faster aging.
Demand for spare parts and overhaul is high and likely to continue for an extended period of time.
AMCOM is pursuing efforts to reduce inventory investment cost by focusing on lead-time reduction – not by buying fewer parts.
Defense Sector Downturn: An Army AVN and MSL Perspective
Communication Throughout The Supply Chain Is Needed
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Defense Sector Downturn: An Army AVN and MSL Perspective
Special Thanks To:
AMCOM Office of Continuous Improvement
AMCOM Integrated Materiel Management Center
AMRDEC Engineering Directorate
Defense Contract Management Agency – Industrial Analysis Center
University of Alabama in Huntsville, Office of Enterprise Innovation and Sustainability
13 FileName.pptx
Industrial Capability
is the Key to National Defense
- Adam Smith, The Wealth of Nations
Defense Sector Downturn: An Army AVN and MSL Perspective