Defense Sector Downturn: An Army Aviation and Missile Perspective of Budget Cuts on the Raw Material Sector

Transcription

1 Presented to: American Metal Market Aerospace Materials Conference Defense Sector Downturn: An Army Aviation and Missile Perspective of Budget Cuts on the Raw Material Sector Approved for public release; distribution unlimited. Review completed by the AMRDEC Public Affairs Office 20 Apr 2012; FN5799. Date: 24 April 2012 Presented by: Robert Olson Aviation Industrial Base Team Lead U.S. Army Aviation and Missile Research, Development, and Engineering Center

2 Industrial SMDC/ Capability DLA Assessments Spare Part Sustainment JIBWG Defense Production JACG Act Title III NATIBO Supply Chain Agreements Analysis Inter Service Defense Priorities & Support Allocation Agreements System AR Manufacturing Technology AMCOM s Aviation and Missile Industrial Base is managed under a TRIBE Philosophy 2 FileName.pptx

3 Spare Part Sustainment 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. Technical Data Rights New Source Approvals Reliability Improvements Increased Competition Improved Spares Support Lead Time Reduction Initiatives Parts Conformance Rapid Prototyping Cost Reduction Programs Obsolescence Mitigation Right Part Right Cost Reliable Source 3 FileName.pptx

4 Aviation and Missile Command Weapon Systems GMLRS Chinook PATRIOT Blackhawk Apache Javelin Lakota Gray Eagle K i o w a 4 FileName.pptx

5 Bell Bell Boeing McDonnell Douglas (Hughes Helicopter (1984)) Sikorsky Boeing Sikorsky Aviation and Missile Sectors Pre-1993 to Present American Eurocopter LUH Contract Award American Eurocopter Are our Primes Right Sized or Balanced for future Aviation and Missile Requirements? 5 FileName.pptx

6 MDD Materiel Solution Analysis AoA -Armed Aerial Scout (AAS) Pre-MDAP -Improved Turbine Eng Program (ITEP) Pre-MDD -Medium Range Multi- Purpose (MRMP) VTOL UAS AOA -Multi Role Helicopter Program Defense Sector Downturn: Army Aviation Program Status A B C FRP Technology Development Preliminary Design Review Engineering & Manufacturing Development Critical Design Review -Kiowa Warrior CASUP (OH-58F) Production & Deployment -UH-60 Black Hawk -AH-64 Apache Block 3 -MQ-1C Gray Eagle -CH-47F Improved Cargo Helicopter -UH-72A Lakota Utility Helicopter Sustainment Operations & Support -AH-64D Longbow Apache -CH-47D Helicopter -UH-60A/L Recap -OH-58D Kiowa Warrior -OH-58A/C Kiowa Warrior -UH-1 Huey - UAS Hunter (MQ-5B) - UAS Gray Eagle, Block 0 --UAS Shadow (RQ-7B) - SUAS Raven (RQ-11B) Current Estimates Platform First Flight for Phase Out Date Chinook CH Kiowa OH Blackhawk UH (M Model) Apache AH (Block III) Light Utility UH Few New Rotorcraft Programs on Horizon LRIP IOT&E IOC 6 FileName.pptx

7 800 DoD Topline (Budget Authority) 700 Current$ in Billions Current$ in Billions DoD Base DoD OCO Army - Aircraft and Missile Procurement (Budget Authority) 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 Army - Aircraft Procurement Army - Missile Procurement Source: DCMA Industrial Analysis Center, DOD FY13 Green Book 7 FileName.pptx

8 Receive Damaged Blades BOEING CH-47 Blade R&O Process DCMA Supply Chain Initiatives 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 Defense Sector Downturn: Goal: 30% Inventory Reduction NVA - W/T 2 hours VA - C/T Shipping & Receiving C/T 2 hours W/T 2 hours P/T 4 hours 1 st shift 2 -Receive blades in can -Remove blades form can - Ready blade for weight 4 2 hours C/T Cycle (touch) Time W/T Wait Time P/T Process Time Boeing CH-47 Rotor Blade Repair Process 4 hours Weight Station C/T 1 hour W/T 4 hours P/T 5 hours 1 st shift 1 -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 1 1 hour Partnering with Army Materiel Command on supply chain transformation initiatives Repair & Overhaul C/T 6 hours W/T 24 hours P/T 30 hours 1 st shift Remove liner & potting from root end * Only performed on 0 24 hours 6 hours 48 hours X-Ray C/T 4 hours W/T 48 hours P/T 52 hours 1 st shift Take 9 x- rays shots for root end evaluation * WIP can wait as long as 5-7 days 10 4 hours 4 hours Supplier relationship management Forecasting Sales & operations planning Strategic sourcing Metrics Human capital Weight Removal C/T 4 hours W/T 4 hours P/T 8 hours 1 st 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. 1 4 hours 24 hours Inspection Bay C/T 8 hours W/T 24 hours P/T 32 hours 1 st shift QC performs initial inspection - QC writes up and enters assessment into MER. (4 hours) NDT performs UT inspections - upper skin - lower skin - shank - lag damper windings (4 hours) 2 8 hours 0 hours WIP C/T= Hrs W/T = 298 Hrs Assumption that long repair time blades are P/T= Hrs (27.72 work days) what we saw waiting in the inspection area during our Nov 2010 trip. This Boeing Reported Time could also account for the 450 calendar days significant time difference 318 work days between process map and what Boeing Reported. Engineer Repair & Trim Tab & Planning Assesment Overhaul Lag Damper C/T 8 hours C/T 4 hours C/T 140 Hours C/T 10.5 hours W/T 0 hours W/T 0 hours W/T 120 hours W/T 24 hours P/T 8 hours P/T 4 hours P/T 360 Hours P/T 34.5 hours FPY 75% FPY 98% 1 st shift st shift st shift nd 1 st shift shift 3 rd - 1 shift Receives MER -Admin & work assessment from loading 30 potential repair Lag Damper QC. tasks / 16 tasks will - prep & load - Performs physical 0 requires UT winder touch inspection. inspection prior to - Wind - performs x-ray moving on to next - Cure review. (2 hours) repair. See page 2 for break down of Trim Tab * secondary repair tasks. clean & prep process: approx - apply adhesive 80% of blades 29 - apply to blade receive incremental - tape to hold in assessment / 20 in-process position disposition (approx 9 waiting - apply heater 6 hours) - cooler C/T 14 hours per day x 10 days (2 weeks) W/T 24 hours per day x 5 days (1week) 0 0 Budget Savings Obtained Through Improved Processes 8 hours 0 hours 4 hours 120 hours 140 hours 24 hours 10.5 hours 12 hours Paint C/T 12 hours W/T 12 hours P/T 24 hours FPY 98% 1 st shift Prime - Paint - Stencil - Cure - Prep for transport to whirl tower 6 3 In-process 3 waiting 12 hours 48 hours Whirl Tower C/T 168 hours W/T 48 hours P/T 216 hours FPY - 85% 1 st shift Teeter - Whirl - Repair - Teeter - Whirl - can & prep for shipment hours 8 FileName.pptx

9 Supply Chain Process Improvement Activities Ti Cap VSM TBD In Planning In Work Complete Supply Chain Mapping Ti Supplier VSM Blade Build Heel Process Kaizen Ti Supplier Kaizen New Blade Enterprise Mapping Activity NCAD Lean Six Sigma Buffer Inventories Blade Admin VSM Blade Overhaul Prime VSM Whirl Tower VSM Blade Shipping Kaizen Shipping Kaizen 2 Vendor Managed Inventories Material Substitution Blades from LARS Commercial Overhaul Depot Overhaul Shared forecasts Vendor Roundtables 9 FileName.pptx

10 What does this mean to Raw Material Suppliers? Rotorcraft production programs are fully funded with fleet size increasing slightly through 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. Raw material demand is expected to be Impacted 10 FileName.pptx

11 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. Communication Throughout The Supply Chain Is Needed 11 FileName.pptx

12 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 12 FileName.pptx

13 Industrial Capability is the Key to National Defense - Adam Smith, The Wealth of Nations 13 FileName.pptx