DMSMS Management:

Planning, Implementation, Assessment, & Metrics

2006 DoD DMSMS Conference

Kevin KenneyPEO IWS 1AQ

Integrated Combat Systems12 July 2006

2

Aegis DMS Background

1991 - Requests for increased funding of $3M by Original

Equipment Manufacturers (OEMs) for redesign efforts, due to

obsolescence issues.

1992 - Aegis Program forms Diminishing Manufacturing Suppliers

(DMS) Working Group to support Aegis Weapon Systems (AWS)

Production Programs

1994 – Implementation of AWS DMSMS Management Plan

1995 - AWS DMS Working Group expands to include support for

fielded equipment and life cycle support activities.

3

Aegis DMS Working Group

•Aegis DMS Working Group–PEO IWS 1AQ - Chair–Lockheed Martin – Maritime Systems & Sensors–Raytheon Integrated Defense Systems–General Dynamics - Armament and Technical Products–L3 Communications–Naval Surface Warfare Center (NSWC) – Crane, IN –NSWC - Port Hueneme, CA–NSWC – Corona, CA–Defense Supply Center Columbus (DSCC)–Navy Inventory Control Point (NAVICP)

4

DMS Management Methodology

AWS DMSMS Management Plan recognized as “Best of Breed” by DASN Logistics in January 2006

AWS DMSMS Management Plan establishes:

•Procedures developed for component DMS and COTS equipment obsolescence management

•Continuous monitoring of alerts and announcements from a variety of sources.

•Assessing of impact to production and post production configurations.

•Sharing and communicating status on all DMS cases via bi-weekly telephone conferences and quarterly face to face meetings

5

DMS Case Management Process

Suppliers, Government / Industry Alerts, purchased DMS tools and services, Sourcing, etc.

Determine affected items & assess impact

Assign DMS Case for tracking

Analyze alternatives and recommend possible resolution path to PEO IWS through Business Case Analysis (BCA) to support lowest cost &

lowest technical riskImplement Recommendation/ Procure

Material

Update database when all requirements are complete

DMS NOTIFICATION

IDENTIFICATION

DMS DATABASE

EVALUATION

IMPLEMENTATION

CASE CLOSURE

6

DMS Management Tools Used in Aegis DMSMS

Parts Control System (PCS)GIDEP

Q-Star

CAPS Expert

COTS Database

Total Parts Plus

I2 TAC TRAC

SMART

7

DMS Case Resolutions

DMS Case Resolutions

Excess Stock

Replacement Supplier

Emulation

Replacement Part

NHA Re-Layout

Re-Package

Class 2 Redesign

Repair (LC only)

Life-of-Type Buy (LTB)

Reclamation

Replace on Failure

Class 1 ECP

Bridge BuyBridge Buys provide interim support until Tech Refresh/Tech Insertion Cycle Completion

Most desired, typically least costly

Least desired, typically most costly

8

Aegis DMS Metrics

DMS Caseload

COTS/MilSpec Caseload Trends

Methods of DMS Case Identification

DMS Case Resolution by Type

Aging of Open Cases

Cost Avoidance

9

DMS Metrics – Caseload

4962

75

148

176

201 212 207

124

147

62 *

0

50

100

150

200

250

# O

F C

ASE

S

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

TOTAL

* As of 6/01/06

10

Historical Aegis Production DMS Caseload (all OEMs)Historical Aegis Production DMS Caseload (all OEMs)

Note: The entire history would extend back to 1992.

0

10

20

30

40

50

60

70

80

90

# of

cas

es

Apr-

04M

ay-0

4Ju

n-04

Jul-0

4Au

g-04

Sep-

04O

ct-0

4N

ov-0

4D

ec-0

4Ja

n-05

Feb-

05M

ar-0

5Ap

r-05

May

-05

Jun-

05Ju

l-05

Aug-

05Se

p-05

Oct

-05

Nov

-05

Dec

-05

Jan-

06Fe

b-06

Mar

-06

Opened Closed Active

11

Aegis ProductionAegis Production COTS and MIL SPEC Caseload Trends (all OEMs)COTS and MIL SPEC Caseload Trends (all OEMs)

0

10

20

30

40

50

60

70

80

90

# of

Cas

es

Apr-0

4M

ay-0

4Ju

n-04

Jul-0

4Au

g-04

Sep-

04O

ct-04

Nov-

04De

c-04

Jan-

05Fe

b-05

Mar

-05

Apr-0

5M

ay-0

5Ju

n-05

Jul-0

5Au

g-05

Sep-

05O

ct-05

Nov-

05De

c-05

Jan-

06Fe

b-06

Mar

-06

COTS MIL

12

Aegis Production FY06Methods of DMS Case Identification

Other: 1726-1, PHD notification of DMS issue

Note: Period covered - 10/05 through 3/06. FY06 does not represent Aegis FY06 contract cases

Other1

Q-STAR1

Sourcing17

GIDEP8

Total Parts Plus1

Industry Alert13

Profile Change4

Market Surveillance

11

Profile Change Sourcing Market SurveillanceQ-STAR Industry Alert Total Parts PlusGIDEP Miscellaneous

13

Aegis Production Aegis Production FY06 DMS Case ResolutionsFY06 DMS Case Resolutions

N/A resolutions:

1515-2, RAVE quantities support profile1695-1, 1696-1, 1702-1, Raytheon opened in error1699-1, 1700-1, 1701-1, 1705-1, RCR resistor casesclosed to original case number1725-1, duplicate of previous case

Note: Total number of cases resolved during this period (10/05 to 4/06) was 74 and does not represent the Aegis FY06 contract cases.

Monitor7 Excess Stock

1LTB29

N/A8 NHA Redesign

3

Replacement Supplier

5

Replacement Part21

Excess Stock Replacement Part Replacement SupplierNHA Redesign Emulation N/ALTB ECP Monitor

14

Aging of Open Aegis Production DMS CasesAging of Open Aegis Production DMS Cases

18 months or older1536-1 P/N 7012220, LM - Redesign NHA 1589-1 P/N 20516299-1, LM - Replacement Part

754-2 P/N 2902230-1, Raytheon - LTB

1 1 1

2

12

12

4

9

21

5

14

45

0

2

4

6

8

10

12

14

# of

cas

es

27 19 18 16 15 13 12 9 8 7 6 5 3 2 1 0Months

94.5% - less than 18 monthsAs of 4/1/06

15

Historical FMS Caseload Historical FMS Caseload

-50

0

50

100

150

200

250

300

350

Jan 0

3Mar

03May

03Ju

l 03

Sep 03

Nov 03

Jan 0

4Mar

04May

04Ju

l 04

Sep 04

Nov 04

Jan 0

5Mar

05May

05Ju

ly 05

Sept 0

5Nov 0

5Ja

n 06

Mar 06

Num

ber

of A

ctiv

e LC

DM

S C

ases

F-100 J1 (KONGO) J2 (2317/18) KDX

F100 caseload: 307

J1 caseload: 296

Korea caseload: 228

J2 caseload: 188