Life Cycle Management Diminishing Manufacturing Sources and Material Shortages (DMSMS) Conference Gary Nenninger AMCOM G-3 11 July 2006

U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

The Situation ƒ Problem: Average Age of Army’s Aviation and Missile Systems Continues to Increase ƒ What’s Being Done – New Procurement – Recapitalization – Modernization Through Spares

2 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

UH-60 Modernization UH-60A/L Baseline

UH-60M Block I

UH-60M P3I Spiral Dev

UH-60M Block II

Entered Army Service 1979

ƒ Analog Cockpit ƒ STD Transmission ƒ 700 Series Engine

FUTURE FORCE

ƒ Digital Cockpit ƒ Dual Digital Flight Controls ƒ Fully-Coupled Flt Director ƒ Wide Chord Blades ƒ Rotor Brake Provisions ƒ Folding Composite Stabilator ƒ Improved Durability Gearbox ƒ 701D Engine

ƒ Fly-by-Wire (FBW) Advanced Flight Controls ƒ Full-Authority Digital Engine Control (FADEC) ƒ Common Cockpit Common Avionics Architecture Sys (CAAS) ƒƒ ƒƒ ƒƒ ƒƒ

Composite Composite Tailcone Tailcone –– As As Ready Ready JTRS JTRS –– As As Ready Ready IVMS IVMS // HUMS HUMS –– As As Ready Ready CMWS CMWS // IMCD IMCD –– As As Ready Ready

ƒ Improved Turbine Engine Program (ITEP) ƒ Improved Transmission ƒ FLIR/MMR ƒ Large Fuel Cell ƒ Improved ASE ƒ Composite Airframe

Performance Attributes (4K Ft/950F): External Lift (lbs @135km): 4500 Air Assault Radius(km): 225

Today

2007

External Lift (lbs @135km): 4500 Air Assault Radius (km): 225

External Lift (lbs @135km): 9000 Air Assault Radius (km): 275

2009

2013 3

U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Recapitalization Rebuild

Two Paths

Selected Upgrade

Zero Time Maintenance Standard

Zero Time Maintenance Standard

Technology Insertion

Technology Insertion

UH-60A

Upgrade Warfighting Capability

Same Model New Life

CH-47F AH-64D

New Model New Life

• Extended service life

One Outcome Organic Depot End Item Workload

• Reduced Operating and Support (O&S) Cost • Improved System Reliability, Safety, Maintainability, and Efficiency • Enhanced Capability 4

U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Modernization Through Spares (MTS) T700 Engine Series Example Today AH-64A -701 -701C

• Army Working Capital Fund

AH-64D -701 -701C

UH-60A -700

DEPOT OVERHAUL 701D (-)

Tomorrow

UH-60L -701C

701D Without Power Upgrade – Run With C Controls

• Reduce O&S Cost up to $100M/yr • Improve Readiness Thru Commonality and + 30% TOW • 60 – 75 Day Depot Overhaul

Field Upgradeable Power With New DECU/FADEC & HMU • Increased Power = Increased Payload

Future Force

701D

701D in UH-60A Control Integration

5 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Barriers to Recap & MTS ƒ Obsolescence ƒ Non Availability from Original Vendor Lack of Data Rights / TDP Inhibits Reprocurement / Competition

Up Front Funding Required To Reengineer Obsolete / Unprocurable Components 6 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

AMCOM Enterprise & Supply Chain AMRDEC

DLA

SMDC

Customers

LCMC Comp A

Comp D

Aviation

Comp B

DCG

Missiles

Comp E PMs

Comp C

PMs

Comp F

CCAD

AC

IMMC

LEAD

7 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Supply Chain Initiative ƒ Develop Factory-to-Foxhole View ƒ Identify Network of Multi-tiered Suppliers for Selected Dynamic Components ƒ Identify Critical Vulnerabilities in Enterprise Supply Chain ƒ Identify Opportunities for Lean and Process Improvement Efforts Within Overall AMCOM Supply Chain ƒ Develop Recommendations for Supply Chain Improvements ƒ Focus: – – – – – –

Increase Throughput Throughout Supply Chain Decrease Production Lead Time Increase Serviceable Inventory Reduce Backorders and Procurement Due-in’s Increase Induction of Unserviceable Onhand Increase Flow of Overhaul 8

U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Aviation Supply Chain/Web Heightened Demand on Limited Capacity AMCOM IMMC/CCAD

DLA Tier 1A

Air Force/Navy Tier 1B

Tier 2A

Boeing Philly

Tier 2B

Bell

Metal Producers “Timken”

Tier 2D

Tier 2C

Tier 1C

Tier 1E Tier 1D Boeing Mesa

Sikorsky

All Roads Lead To Timken Latrobe 9 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Supply Chain Initial Findings ƒ Lead Times Too Long

Line-of-Balance Reviews of Aviation Items – Intensive Management Required

ƒ Better Inventory Management Needed ƒ Labor Vulnerability at Vendor Factories ƒ Limited Communication or Visibility of Information in Supply Chain ƒ Sole Source Restraints/Constrained Capacity for Specialty Metals

Berry Amendment Impacting Specialty Metals Availability

Opportunities For Improvement Exist & Are Being Pursued 10 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006

Path Ahead ƒ Intensively Manage Supply Chain ƒ Pursue Joint Contracting Initiatives ƒ Avoid “Boom or Bust” Procurement Cycles ƒ Consider Bringing Single Source / Foreign Source Items In-house (Eliminate Industry Capitalization Issue – Biggest Barrier to Market Entry)

11 U.S. Army Aviation and Missile Command, G-3

G3-0559 – DMSMS, Panel A (Nenninger) – 06/14/2006