Production Delinquencies Scott Welker AMSOSPR 309 782 7097
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Production Delinquencies Scott Welker AMSOS-PR (309) 782 -7097 welkerd@osc. army. mil OSC – On the Line
AMMUNITION KEY METRICS and OBJECTIVES h. OUTLOADING CAPABILITY h. AMMO FOR THE WARFIGHT h. AMMO FOR TRAINING 4 Safety Is Foremost Consideration ä Must Provide Safe Ammunition to Troops 4 Quality>>Schedule>Cost ä Quality, On-time Product Can Keep Us Training, Fighting, and Winning the War ä Cost Remains a Constraint 2
AMMO READINESS (WARFIGHT/TRAINING S-RATING Quantity On-Hand Total Requirement R-RATING Compare To Quantity Serviceable Quantity On-hand C-RATING What is the weighting Among these (at each level) For importance? 3
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Start FY 01 and FY 02 Execution Total: $1516 26% Green 46% Amber 28% Red Total: $1559 30% Green 48% Amber 22% Red 6
FY 02 Execution Plan Projections Forecast delivery of $697 M in FY 02 194 Programs 1320 Orders 7
Delinquencies by Customer ($M) FY 01 & Earlier Orders 8
Distribution of Delinquent (Red) Programs ($296 M) A/O 31 Dec approx $205 m Delinquent to CRDD/FDP on contracts A/O 31 Dec Only $43 m Delinquent to K schedule 9
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 10
Long-Term Contracts QA Foundation • Incentivize quality, delivery, & investment at competitive price Risk Mitigation • Correctly Classify Criticals Safe, Quality Ammo • Prevent Criticals Mfg • Use Automated Insp Delivered On-Time Program Risk Critical Defects Assessment • Identify Risk areas early to influence budget & acq strategies • Inform customers of risk before accepting funds • Implement problem prevention/risk mitigation plans Program Reviews RISK RISK • Internal/Supplier Journey to • Focus on problem • Key Characteristics programs • Variation Reduction • Share lessons learned - Lot-to-Lot • Track progress on - Item-to-Item problem prevention actions Excellence • Common policies/procedures • Trained HQ and Plant Staff • Communicate expectations to contractors, DCMA, ARDEC, installations. • Audit capability - prevention oriented. • Grow “Next Generation” QA Specialists Automated Systems Initiatives • CTC; WLMP; others • Analysis to replace number crunching • Key metrics Process Management • Document processes for • Establish disciplined workforce education process for decisions, • Provide customer focus problem solving, and • Improve our business • Define roles/responsibilities lessons learned • Identify metrics 11
FY 02 Funds for Procurement of Ammunition by Service - $2, 528, 508 DMA Portion by Service – Approximately $851 (in Millions) 29% of total Air Force 36% of total Army l ta of to % 54 C USM SOURCE: FY 02 Defense Appropriations Conference Report 107 -350 Includes for Army Demil $73. 3 m Pdn Base Spt - $83. 4 m ARMS - $14. 7 m 31% of total Navy OSC Contract Center supted PM Rockets (HYDRA) $181 M in FY 01 SOURCE: Execution Price List, 16 Nov 01 Addt’l $100. 9 M in Other Customer & FMS cases were acptd in FY 01 12
Principal Delinquent DODICs As Of 31 Dec 2001 List represents 73% Undelivered Red Dollars Backup
Principal Amber DODICs As of 31 Dec 2001 List Represents 82% of Undelivered Amber Dollars Backup