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

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.

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

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%

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

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

Delinquencies by Customer ($M) FY 01 & Earlier Orders 8

Distribution of Delinquent (Red) Programs ($296 M) A/O 31 Dec approx $205 m Delinquent

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 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

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

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

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

Principal Amber DODICs As of 31 Dec 2001 List Represents 82% of Undelivered Amber Dollars Backup