Wendy Messer, Defence Material Organisation - Keynote address from the DMO

Equip and Sustain the Australian Defence Force

Equip and Sustain the Australian Defence Force

Challenges around the world

• Government’s key priorities include:

• responsibly managing the Government’s finances;

• building a more productive and competitive economy;

• delivering better public services within tight fiscal constraints

• Key priorities:

• Addressing affordability issues.

• Maintaining momentum in key relationships.

• Organisational improvements.

Equip and Sustain the Australian Defence Force

DMO

Purpose

The DMO exists to equip and sustain Defence’s materiel capabilities to

meet Australia’s needs in an effective, efficient, economical and safe

manner

Vision

To be recognised and respected as a global leader in Defence materiel

solutions

DMO 2013-15 Strategic Framework

Released in February and defines our purpose, vision, goals, core

functions, values, behaviours, and accountability. Details available on

the DMO website:

www.defence.gov.au/dmo/publications/Strategic_Framework.pdf

Our Vision: To be recognised and respected as a global leader in Defence materiel solutions

Equip and Sustain the Australian Defence Force

Australian Industry Policy

• Defence Industry Policy (2013 White Paper)

– support the growth and competitiveness of Australian businesses

– support a highly skilled and capable Australian defence industry

• Growing the defence sector’s capacity and competitiveness by

continuing investment in three key areas:

• enhancing innovation,

• building competitiveness, and

• developing skills

Equip and Sustain the Australian Defence Force

Australian Industry Programs

• Enhancing Innovation including:

– the Defence Future Capability Technology Centre,

– Priority Industry Capability Programs,

– Capability Technology Demonstrator Program

– Rapid Prototyping, Development and Evaluation Program

• Building Competitiveness through:

– AMSO

– Global Supply Chain Program

– Export support and Team Defence Australia exhibitions

– Defence Industry Innovation Centre

– Australian Industry Capability Program

Equip and Sustain the Australian Defence Force

Australian Industry Programs (cont)

• Developing Skills

– Skilling Australia’s Defence Industry Program

– School Pathways Programs

– Internships and undergraduate traineeships

– Sponsorship of Re-Engineering Australia (REA) Foundation

– Master of Systems Support Engineering and Doctorate in Systems

Engineering

• Defence Industry Relationship through ongoing mechanisms:

– DMO Business Access Offices

– Defence+Industry ePortal

Equip and Sustain the Australian Defence Force

Australian Military Sales Office

• Facilitates export-related transactions and major disposals activities,

including Government-to-Government (G-to-G) sales for Australian

produced military equipment and services.

• Supports Defence, the Australian Government and the Australian

Defence Industry by:

– increasing industry sales and export opportunities

– initiating and managing Government to Government sales

– improving Australia’s domestic capabilities in the Defence sector

– strengthening Australia’s alliance with other countries through a

program of export facilitation and disposals activity.

• Provides advice and answers questions in relation to Australia’s

defence industry and a company’s capabilities/service if the company

has a contract with Defence.

Equip and Sustain the Australian Defence Force

Australian Industry Capability Program

• Maximise opportunities for Australian industry to address the

capability needs of the ADF on a best value basis by:

– leveraging major Defence projects to create opportunities for

Australian defence industry;

– influencing foreign prime contractors and OEMs, including

Australian based subsidiaries, to ensure cost-effective delivery of

acquisitions and maintenance, and encourage investment in

Australia; and

– make technology transfer an attractive proposition for large foreign

original equipment manufacturers.

Equip and Sustain the Australian Defence Force

Defence+Industry ePortal

• The D+I ePortal provides:

– industry with a way to access a range of Defence information

including opportunities for companies, including SMEs, to

participate in Defence acquisition and sustainment programs.

– comprehensive and authoritative company-supplied information

on Australian industry capability for Defence and other potential

customers.

• Benefits of registering with DMO

– Registered users, when logged into the D+I ePortal, have access

to a number of reports that provide data about company capability.

– A registered user can request affiliation to a company and/or start

registering their own company on the site.

Equip and Sustain the Australian Defence Force

Business Access Offices

• Provide a local interface for industry, particularly small to medium

enterprises to engage with Defence

• Provide updates for Defence Industry

• Maintain strong working relationships with State and Territory

Governments

• Assist companies to build networks with other suppliers to Defence

• Identify and refer potential new products to relevant teams within

Defence

• Work with local, state government and industry associations to bring

you up-to-date information and presentations on issues of interest to

Defence Industry

• Manage industry assistance programs including the Letter of

Recognised Supply.

Equip and Sustain the Australian Defence Force

Global Supply Chain

• Launched 1 July 2009 in Defence White Paper

• Aims to create opportunities for Australian industry in the global

supply chains of multinational defence companies and their major

subcontractors.

– Offices or units within the overseas prime contractor or its

Australian subsidiary are created.

– These offices work with capable Australian companies to

provide with contract opportunities that are internationally

competed

Equip and Sustain the Australian Defence Force

Global Supply Chain

• Launched 1 July 2009 in Defence White Paper

• Current participants

– Boeing

– Raytheon

– Thales

– Northrop Grumman

– Lockheed Martin

– BAE Systems

– Finmeccanica

Equip and Sustain the Australian Defence Force

Global Supply Chain Lessons

• SMEs can be ‘Defence-ready’ and improve their capacity to participate in the global market by:

– Ensuring they have:

• current information on the goods and services they can deliver including cost estimates and pricing structures

• long term business and investment plans which are well based, current and executable

– Demonstrating:

• strong control systems both for manufacture and delivery as well as for finance and personnel aspects of business

• effective management of their own supply chains

• continuous improvement methodologies

– Understanding the business and requirements of the major contractors with whom they would like to work

– Developing their ability to team with other suppliers to deliver requirements

Equip and Sustain the Australian Defence Force

Let our customers do the talking

“The GSC program has greatly assisted us to transition from the

Australian market to supplying global prime contractors.

The GSC program has also assisted us with guidance and training to

present ourselves in the most positive way to overseas companies.”

Mark Pezaro Business Development Manager Micreo Limited

“We are more than happy for you to note Aerosafe’s support for the GSC

program. Whilst it is still early days for our involvement, we do consider

that there is significant potential for a company like ours.”

Brett Worsley - Aerosafe Risk Management

Equip and Sustain the Australian Defence Force

Questions?

Director General

Australian Industry Programs

Defence Industry Division

DMO

[email protected]

Wendy Messer