Forging Industry Technical Conference Columbus OH PROFAST Dean

Forging Industry Technical Conference – Columbus, OH PRO-FAST Dean Hutchins Defense Logistics Agency September 19 & 20, 2016

Outline ¨ ¨ ¨ Defense Logistics Agency Manufacturing Technology Program Merging DLA and Man. Tech PRO-FAST Program Actions 2

Who is DLA? • DLA provides more than $42 billion in goods and services annually. The agency employs more than 25, 000 civilians and military, located in 48 states and 28 countries. • DLA operates 24 distribution centers supporting more than 2, 300 weapons systems; and, manages nine supply chains with nearly 5. 1 million line items. • Additionally DLA administers the storage and disposal of strategic and critical materials to support national defense. Headquarters at Fort Belvoir, Virginia, DLA is a global enterprise – wherever the United States has a significant military presence, DLA is there to support. • Two Primary Sites involved with Forgings – Richmond, VA – Aviation Supply Chain – Columbus, OH – Land & Maritime Supply Chains 3

Global Supply Chains at the DLA Primary Level Field Activities (PLFA) DLA Troop Support • Class I: Subsistence – Food & Combat Rations • Class II: Clothing & Textile – Dress & Combat Uniforms • Class IV: Construction & Equipment – Facilities Maintenance • Class VIII: Medical – Pharmaceutical & Medical Equipment • Class IX: Industrial Hardware DLA Aviation • Class IX: – Engine Components, Air Frames – Flight Safety Equipment DLA Land Maritime • Class IX: Maritime – Valves, Fluid Handling – Electrical/Electronics • Class IX: Land – Wheeled, Tracked & Heavy Vehicle Parts – Small Arms Parts DLA Energy • Class III: Energy – Bulk Petroleum, Natural Gas, Coal, Electricity – Aerospace Energy 4

DLA Strategic Guidance Mission: Supporting the Warfighter Provide effective and efficient global solutions to Warfighters and our other valued customers Vision: Deliver the right solution on time, every time DLA achieves this vision through 5 goals 5

DLA (RDT&E) Strategic Focus Areas FY 16 $38. 1 M Subsistence Clothing & Textiles Medical PE 0603680 S Manufacturing Technology (DLA Industrial Base Focus) 'IP MANTECH' $22. 605 M Energy PE 0603712 S – Generic Logistics R&D (DLA Business Process Focus) 'LOG R&D' $15. 537 M Const/ Equip Industrial Hardware Maritime PE 0605502 S – Small Business Innovation Research ‘SBIR’ $3. 0 M of Appropriated Funding Land Aviation PE 0605502 S – Small Business Technology Transfer ‘STTR’ $0. 4 M of Appropriated Funding Improving Industrial Base Manufacturing $4. 875 M (Castings, Forgings, Battery Network, Subsistence Network, Military Unique Sustainment Technology, Additive Manufacturing) Maintaining Viable Supply Sources $12. 373 M (Material Acquisition Electronics, Strategic Materials) Improving Technical and Logistics Information $5. 357 M (Military Unique Sustainment Technology, Defense Logistics Information Research) Enhancing Analysis, Modeling, and Decision Support $3. 423 M (Weapon Systems Sustainment, Medical Logistics Network, Strategic Distribution & Disposition) Improving Logistics Processes $7. 042 M (Weapon Systems Sustainment, Medical Logistics Network, Strategic Distribution & Disposition) Emergent Logistics R&D requirements $5. 072 M (Supply Chain Management, Energy Readiness Program) 6

R&D Integration into the DLA end-to-end supply chain Plan Weapons Systems Sustainment Deliver Source Return Suppliers’ Supplier Strategic Materials Make Deliver Return Supplier Source Make Return Deliver Return Defense Logistics Agency Castings Microcircuit Emulation Forgings Batteries Energy Counterfeit Parts Additive Manufacturing SUPPORT THE WARFIGHTER Source Make Return Deliver Source Return Customer Distribution Customer’s Customer Disposition Subsistence Individual Items & Equipment 7

DLA Man. Tech Program Overview Mission: Supporting the Warfighter Supports technical innovation in the DLA industrial base to improve the operational performance of key supply chains Budget: $24. 605 M (FY 16) Investment Portfolio Areas: • • • Castings/Forgings Advanced Microcircuit Emulation (AME) Battery Network (BATTNET) Military Unique Sustainment Technology (MUST) Subsistence Network (SUBNET) Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) New: Defense Logistics Innovation Research (DLIR) Emerging: Additive Manufacturing; Strategic Materials 3 -D Printed Casting Cores for Engine Airfoils Optimized Ceramic Stereolithography process to manufacture casting cores for engine airfoils Reduced lead time by 12 weeks; faster new design insertion with reduced [low rate initial production (LRIP) cost] Additive Manufacturing Parts Demonstration with US Navy Air Systems Command (NAVAIR) Created an end-to-end manufacturing demonstration of additive manufactured in 4 weeks; gained significant knowledge in the design, development, testing & evaluation of parts 8

Forging Supply Chain Challenges ¨ Diminishing Sources · ¨ Disappearing Tooling · ¨ Months to years High Mix, Low Volume Enterprise · ¨ Months + delays with “faulty” bids Long Production Lead Times · ¨ Weapon systems outliving the Terms and Conditions for securing forging dies Long Administrative Lead Times · ¨ Consolidation of the forging industry which compounds tooling issues Small lot sizes for aging weapon systems Aging Work Force · · Defense Logistics Agency work force Forging industry work force 9

Procurement Readiness Optimization – Forging Advanced Systems and Technologies (PRO-FAST) Defense Logistics Agency – Forging Industry Manufacturing Technology Program 10

FORGE-IT, AFCAT, & Meta. LFACT Warfighter Forging Problem • Forgings and castings represent >4% of total backorders, 20% of the oldest 100, and 10% of the oldest 1, 000. OBJECTIVE or SOLUTION Issue Supply Chain Technical PROBLEM Forging Solution Addressing acquisition and technical requirements BUSINESS STRATEGY • Joint: No • Execution: DLA • Performing Organization(s): SCRA Applied R&D, AFCAT, Meta. LFACT • Projected Start Date and Duration: 9/22/14 – 9/21/19 – 60 months • Reduce the disproportionate amount of backorders or unfilled orders in DLA caused by forgings and to improve the quality, productivity, technology, and practices of business in the forging industry. APPROACH • On-site support at DLA PLFA’s (AFCAT and Meta. LFACT) • On-demand technical and supply chain assistance • DLA and ESA workforce development events LEVERAGED EFFORTS • Utilizing previous investments DLA programs • Converted Navy Price Fighter Forging cost guide into dynamic should-cost tool • Supporting forging R&D projects, both past and present BENEFITS / WARFIGHTER RELEVANCE • Reduced costs, quicker delivery, increased weapon system readiness • Addressing elements of all five DLA Goal Areas • Supporting all five major Services IMPLEMENTATION • AFCAT and Meta. LFACT • Embedding knowledge within ESA’s and DLA (people and systems) • Documented, successful, and repeatable processes 11

Seminars – Workforce Development 12

Encourage Industry Participation Participate in Projects ¨ Update Tooling Lists ¨ Host Bus Tours ¨ Participate in Seminars ¨ Bidding on Forging Procurements ¨ 13

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