Production Delinquencies

1
Production Delinquencies

• Scott Welker
• AMSOS-PR
• [phone]
• welkerd_at_osc.army.mil

2
AMMUNITION KEY METRICS and OBJECTIVES

• Safety Is Foremost Consideration
• Must Provide Safe Ammunition to Troops
• QualityScheduleCost
• Quality, On-time Product Can Keep Us Training,
  Fighting, and Winning the War
• Cost Remains a Constraint

• OUTLOADING CAPABILITY
• AMMO FOR THE WARFIGHT
• AMMO FOR TRAINING

3
AMMO READINESS (WARFIGHT/TRAINING
S-RATING
R-RATING
Compare To
Quantity On-Hand
Quantity Serviceable
Total Requirement
Quantity On-hand
C-RATING
What is the weighting Among these (at each level)
For importance?
4
(No Transcript)
5
(No Transcript)
6
Start FY 01 and FY 02 Execution
Total 1516 26 Green 46 Amber 28 Red
Total 1559 30 Green 48 Amber 22 Red
7
FY 02 Execution PlanProjections
Forecast delivery of 697M in FY02
194 Programs 1320 Orders
8
Delinquencies by Customer (M) FY01 Earlier
Orders
9
Distribution of Delinquent (Red) Programs (296M)
A/O 31 Dec approx 205m Delinquent to CRDD/FDP on
contracts
A/O 31 Dec Only 43m Delinquent to K schedule
10
Root Causes Identified

• Root Cause Facts
• 80 Ammunition
• DODICS Studied
• 140 Separate Root Causes Identified
• 28 of DODICS
• single cause
• identified
• 72 of DODICS
• multiple causes
• identified

11
Risk Mitigation

• Long-Term Contracts
• Incentivize quality, delivery,
• investment at competitive price

• QA Foundation
• Common policies/procedures
• Trained HQ and Plant Staff
• Communicate expectations to contractors, DCMA,
  ARDEC, installations.
• Audit capability - prevention oriented.
• Grow Next Generation QA Specialists

• Critical Defects
• Correctly Classify Criticals
• Prevent Criticals Mfg
• Use Automated Insp

Safe, Quality Ammo Delivered On-Time
RISK
RISK

• Program Risk Assessment
• Identify Risk areas early to influence budget
  acq strategies
• Inform customers of risk before accepting funds
• Implement problem prevention/risk mitigation
  plans

RISK
RISK
RISK

• Automated Systems Initiatives
• CTC WLMP others
• Analysis to replace number crunching
• Key metrics

RISK
RISK
RISK

• Process Management
• Document processes for workforce education
• Provide customer focus
• Improve our business
• Define roles/responsibilities
• Identify metrics

• Program Reviews
• Internal/Supplier
• Focus on problem programs
• Share lessons learned
• Track progress on problem prevention actions

Journey to Excellence

• Key Characteristics
• Variation Reduction
• - Lot-to-Lot
• - Item-to-Item

• Establish disciplined process for decisions,
  problem solving, and lessons learned

12
FY 02 Funds for Procurement of Ammunition by
Service - 2,528,508DMA Portion by Service
Approximately 851(in Millions)
36 of total Army
29 of total Air Force
SOURCE FY02 Defense Appropriations Conference
Report 107-350
SOURCEExecution Price List, 16 Nov 01
31 of total Navy
13
Principal Delinquent DODICsAs Of 31 Dec
2001List represents 73 Undelivered Red Dollars
Backup
14
Principal Amber DODICsAs of 31 Dec 2001List
Represents 82 of Undelivered Amber Dollars
Backup