A New Frontier in Military Maintenance and Repair

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Executive Summary

If Napoleon’s army marched on its stomach, then today’s military manoeuvres machines — Abrams, HMMWVs, Blackhawks, Apaches, C-17s, C-130s and numerous other end items — that require constant maintenance and repair to keep our military forces moving masterfully with maximum might and acute agility.

The core of any organization is its resources — the combined human and physical assets necessary to produce and perform at peak levels. In today’s military services, keeping major end items in mission capable condition has been a tremendous challenge in theatres of operation. The harsh conditions and extended deployments — unplanned for in original designs — have put extensive wear and tear on equipment. Without exception, throughout all branches of military services, there is substantially diminished “slack” in the system to provide support and help units maintain readiness.

Microsoft, and our partners Tectura, Intercim and NGRAIN, have come together to introduce a Service Oriented Architecture (SOA) solution designed to reduce repair cycle time and costs. Together our team is strategically focused on assembling the ideal components that meet functional requirements, and add efficiency and a higher level of excellence to military maintenance facility operations.

We will briefly summarize the key issues for each opportunity for improvement and propose the features of a comprehensive solution to address it. This is not intended to be a lengthy technical whitepaper, or a brochure focused only on technical features, but a summary of capabilities matched against pressing challenges. Following the challenges, we discuss the technical architecture to provide an overview of how the solution will be sustainable, cost-effective and meet the requirements of defense departments.

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Key Areas of Improvement

Microsoft and our partners have been afforded the opportunity to work with maintenance facility customers to analyze their key problems. We developed solutions to address these problems in an integrated way, and have identified six common ‘key’ areas of potential improvement in the following categories:

• Parts Ordering — one of the major pain points and highest priorities identified through our work with depot customers is the parts ordering process. One Lean study with the United States Armed Forces revealed a complicated process of manually checking inventory from multiple sources while trying to keep track of contractual commitments with key Original Equipment Manufacturers (OEMs). The process is frustrating for those using it and produces poor results. In many cases, soldiers working at the depots are unsure what exact parts to order, and end up ordering more parts than they require, in the hope of receiving the few parts they actually need. The study showed that automating the process could conservatively save $35M over five years.

• Integrated Scheduling — providing an integrated scheduling capability would have the greatest impact on the daily operation of the maintenance facility. These tools however, are primarily standalone for the areas that they serve and are not integrated into a master schedule. A master schedule incorporates requirements, parts, equipment, human resources and program schedules. Without a schedule that integrates all major inputs, it is difficult, if not impossible, to manage facility capacity. Further, a comprehensive solution must have an integrated scheduling tool that will provide maintenance facilities with the process visibility to implement effective schedule performance monitoring.

• Improved Bill of Materials Management — Bill of Materials (BOM) for assets are often inaccurate resulting in the wrong number of the wrong items being ordered to perform a repair activity. The reasons for this vary — cumbersome legacy systems discourage users from routinely updating BOMs or National Stock Number (NSN) changes are not captured in BOMs automatically, unclear personnel processes or confusion around job accountability (“it’s someone else’s job”). Any work execution system is dependent upon the quality of the BOM master data for each individual asset production line. Technology alone will not correct bad data. A comprehensive solution must facilitate a culture for personnel to identify repair BOM discrepancies experienced on the shop floor and establish a process for communicating those problems for resolution to a maintenance planning activity which is assigned to maintain the accuracy of the repair BOM.

• Electronic Technical Data — although technical data exists at many maintenance facilities in electronic form, it is often contained in silo-like systems used solely for lookup on the shop floor. The data is constantly under update as the configurations of assets undergo engineering changes. The opportunity is to integrate and link technical data into the BOMs utilizing Interactive Electronic Technical Manuals (IETMs) to help improve productivity and eliminate a silo.

• Reporting — monitoring shop floor operations and analyzing progress and results is largely done through a mix of legacy applications and departmental databases. Many systems were originally developed to track program costs or to track maintenance activities performed. They were designed for this sole purpose and therefore are limited to capturing data related to that purpose. With the advent of process improvement and quality methods such as Lean/Six Sigma and Theory of Constraints in the materiel commands across the services, the need to capture detailed data is greater than ever. Several sites Microsoft has worked with have developed 300 to 600 Excel and Access repositories derived from source system data to manage schedules and other processes. In order to manage the portfolio of maintenance activities within the military services, a more comprehensive approach needs to be adopted to provide leaders and strategic decision makers with increased visibility of maintenance to

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support budgeting and planning. This will, in turn, provide them with the ability to prioritize maintenance activities based on force generation needs. In addition, it will better support a “reporting infrastructure” where key performance metrics for a maintenance facility is sourced directly and seamlessly from system data, rather than manual manipulation through external spreadsheets and other data analysis programs.

• Complete Asset Life Cycle Management — Maintenance data is kept on assets, of course, but is not kept in all cases electronically or in an integrated system. Enabling the capture of repair activities not only provides a feedback loop to increase the accuracy of BOMs, but enables the military to reduce costs and increase equipment availability through predictive maintenance. Given how maintenance work on major end items is distributed across field and maintenance operations, developing the ability to track maintenance activity and link it to the parts that were used and particular suppliers is of major importance. Also, within the Life Cycle Management area is the requirement to provide tracking, management, and replacement of the limited life components in the asset. The historical maintenance data is used to project the effective life of those components that are limited by either time or exposure to events (e.g., some landing gear components are limited to a fixed number of take-offs and landings).

Key Areas of Improvement, continued

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Parts Ordering

Parts ordering is the process for placing orders for the parts required to complete a specific maintenance activity. The measure of success is that the right parts are present at the right workstation and at the right time. A complex source of supply can make this very challenging, forcing the production controller or item manager to act as a router, looking up parts against OEM contract lists, checking inventories from multiple spreadsheets or faxes, or checking parts against engineering updates.

As this plays out, the opportunity for errors is high resulting in the wrong parts being ordered, which is costly and unnecessarily increases the repair turnaround time. Updated information is not always available causing further delay. To address this systemic issue, a solution must simplify the act of placing a parts order so that the production controller can get back to managing their primary work.

A comprehensive solution needs to have a single screen for ordering. A solution we developed for Army depots provides:

• Single screen ordering solution with built-in business intelligence

• Data driven business rules running behind the scenes invisible to the requestor

• Validation of the quality of material data input (FedLog) resulting in increased accuracy of material ordered by minimizing the number of material rejects

• Manage excess stock at the depot by checking Work In Progress (WIP) inventory first

• Identify the material provider of choice

• Online integration with key suppliers has the potential for elimination of a key bottleneck — paper forms for processing orders

The parts ordering process can be further enhanced by integrating an interactive 3D model of the equipment. The 3D model can be used as a visual index to the parts, whereby the user can interact with the 3D model and visually select the parts that require ordering. This can further reduce the number of errors, and increase the speed of the parts ordering process.

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Bills of Material (BOMs)

Maintenance facilities typically use available replacement part data supplied by the OEM or data that’s been gathered historically by its own personnel. The gathered data for a specific asset is a complete list of replacement parts for a particular asset. Included in the file is a data element identifying the required quantity for each part item based upon historical consumption data. The maintenance facility maintains and adjusts the required needs for the replacement parts identified on the repair BOM.

Addressing inaccurate BOMs is a two-phased approach. First, you must migrate any repair BOM data files supplied by the OEM. Moving forward, the upfront data

cleansing process can be discontinued. This methodology is resource intensive and the effectiveness is difficult to measure.

Our solution enables a shop floor maintenance planning feedback capability. The BOM designer is shown in the picture. This feedback capability allows the shop floor to report identified discrepancies with replacement parts to a maintenance planning production support group. The planning support group, using the feedback, will modify/update the repair BOM event template library. This is a continuously evolving resolution mechanism to improve repair BOM accuracy. The maintenance facility may experience impact initially due to the number of existing accuracy errors, however, efficiencies will be quickly realized when job tickets are completed and maintenance planning feedback is incorporated.

• Master repair BOMs can be captured in a “library fashion” similar to the maintenance event template. Repair BOM templates will incorporate existing depot historical consumption data via the available Overhaul Factor

• Repair BOMs are linked to the maintenance library event template and carried over to the actual Job Ticket (i.e. repair BOM assigned to asset Job Ticket) for shop floor personnel reference

• Feedback is incorporated to maintain accuracy of the repair BOMs. Maintaining the accuracy of the repair BOMs will ensure the correct parts are ordered by the shop floor for a specific asset. In the event discrepancies result, a direct shop floor/maintenance planning feedback process will be used to incorporate feedback into the library repair BOM event template, removing a reoccurrence of the same discrepancy for similar future work activities. Business rules will also be associated with BOMs to ensure the shop floor is only ordering authorized materials and quantities. This functionality prevents shop floor material excess, reduces the number of transactions on the supply chain, and most importantly, reduces the overall program cost.

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Task Resource Requirements

Task or work resource requirements are a listing of requirements (materials, tools, and resources) necessary to perform a specific maintenance task at a specific step in the assembly process. Today, these needed resources are continuously evolving.

Problems like material lead time exceeding the maintenance work schedule challenge the ability of the maintenance facility to satisfy completely the task requirements. There are many reasons for material availability issues, i.e. material manufactured defects, poor workmanship, incorrect use of tools/incorrect tools for the task, or individual training issues.

Task or work resource requirements are a listing of elements (materials, tools, and resources) necessary to perform a specific maintenance task at a specific step in the assembly process. Today, these needed resources are dynamically changing, including:

• Skills required — a procedure requires that it be done by a worker with a certain certification. She is out sick today.

• Parts required — parts arrive at the work station but have defects and a long lead time for replacement.

• Tools required — a lathe required for the procedure is taken out of service for a maintenance overhaul.

Ideally, the philosophy of this function is based on making all materials required to perform a maintenance task available at the area on the shop floor where the work is to be performed. For it to work effectively, dynamic events such as those listed above must be accounted for in the integrated schedule and managed.

Moving from mass induction mode to a “one in, one out” mentality is the challenge. The single objective is to deliver all required parts to the assembly area before assembly can begin. The maintenance event templates can again be used to identify required task materials by an enclosed material checklist on the Job Ticket and by visual inspection of pre-staged material kits.

The Dynamics AX MRO solution uses Event Planning Templates to bring together all requirements. These in turn feed an integrated schedule.

Once the event templates are in place, a job card can be generated from them at the point of work being done. This is done in the shop floor control system, Velocity. This tool brings together job card information for the worker and enables him to capture as-built information as he goes through the job. This includes sign-offs, parts used, and tools measurement data.

If additional parts above and beyond the task are required, then facility management intervention is required to understand why there is an issue on the line. Task resource requirements can be incorporated into the Maintenance Event Planning templates that generate the Job Ticket. The shop floor feedback loop will enable a maintenance planning activity to incorporate changes to task resource requirements. The continuous improvement from using this corrective feedback loop based on task resource requirements will establish the confidence that all the required resources are available to execute against the schedule.

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Integrated Scheduling

An integrated schedule can be used to manage resources (People/Tools/Facility Equipment), maintenance, production and determine a facility’s operating capacity level.

Program: The entire program scope (Work Orders and Job Tickets) can be transformed into an integrated work schedule based upon planned work durations to perform the maintenance tasks.

Work Execution: Actual “work performed” duration can be compared to “planned/estimated” duration for performance monitoring/trending.

Resource Loading: Personnel resource loading is performed via Job Ticket requirements in conjunction with the schedule (available resource man hours to actual required work man hours).

Equipment and Scheduling: Common facility equipment and special tools (typically bottlenecks) can be scheduled and integrated with the overall maintenance facility’s schedule. (i.e. cleaning, inspection, plating, machine press, etc.)

Capacity Planning/Modeling: A maintenance facility can determine operating capacity based upon a comparison of the size of the workforce and available machinery/tools to customer demand. Capacity planning/modeling enables the maintenance facility to respond to conditions of work shrink or surge.

Dynamics AX MRO would be used to draft “the Maintenance Facility Plan.” Each maintenance work center can be held accountable to support the schedule/facility plan. A properly orchestrated and managed schedule plan will reduce dependence on overtime to compensate for process inefficiency, reducing overall program costs. Today, maintenance facilities have enough historical data to establish event template baseline work durations.

A properly orchestrated and managed schedule plan will reduce dependence on overtime to compensate for process inefficiency, reducing overall program costs. Today, maintenance facilities have enough historical data to establish event template baseline work durations.

For example, Gantt charts can be used to layout, view, and print the program schedule. Reporting tools can be used to monitor and report actual work execution performance in accordance with the schedule/plan. Maintenance facility operating capacity can be determined based upon actual work execution performance. Capacity planning/modeling can be performed for each shop production line matching the workforce with actual demand. Known operating capacity allows the maintenance facility to introduce new work giving them the flexibility to respond to overall customer demand during periods of drawdown or ramp up.

The Integrated Scheduling Tool provides the following key benefits:

• Forecasting (30, 60, 90 days to 1 year) to control induction of assets

• Shop Floor Work Execution (Start/Stop Statusing)

• Coordination of schedule with material lead times

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Electronic Technical Data

Many maintenance facilities today have technical manuals or data at hand — some in paper format, some electronic copies of scanned or converted documents. This is a testament to the age of many of the platforms in use today. At a minimum, a shop floor work control system should be able to pull up any electronic documents available from a job card. This makes the interface easier to use — the maintainer is already looking at the job card and one click brings up the right technical document with information relating to the procedure to be performed based on the job card.

Some defense departments have started to incorporate Interactive Electronic Technical Manuals (IETMs) into the work control system. IETMS further accelerate the benefits of providing maintainers with access to technical data. The IETMs typically include text and 2D

images, but can also include interactive 3D models developed for key components and ultimately entire platforms with less investment than one might think.

The 3D models are not simply 3D ‘pictures’ of a component — they are fully interactive 3D simulations of the equipment. The tool we offer allows for scripted ‘demonstration’ of a repair procedure using 3D animations to support “just in time” training on the procedure, or to refresh the maintainer’s knowledge at the point of performance. The animations capture and demonstrate the knowledge of how to perform the repair by showing the part movements and repair activities for each step in the task, and incorporating audio narration. The tool we provide allows defense department maintainers and Subject Matter Experts to create, modify and update the 3D simulation content themselves. When you consider the aging workforce and the skill sets that will retire with them, the ability to capture their knowledge and embed it inside 3D equipment simulations will become a critical part of operations. The use of 3D equipment simulations has been demonstrated to enable workers to learn new procedures 60% faster and to reduce equipment repair turnaround times by 30%.

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Some of the key business metrics that a maintenance facility may need to report on are:

• Cycle time

• Repair Facility Maintenance Cost (Actual vs. Planned)

• Schedule Performance (Actual vs. Planned)

• Variance

• Material Cost

• Inventory Levels

• Retrograde (Forecast incoming assets)

• Asset Availability

Reporting

Efficient and effective product flow (or movement) hinges on the elimination of events that interrupt that flow. A mechanism that can provide alternative solutions/options, and the ability to know what those options are, is an invaluable tool. Exception management is a robust reporting tool that helps military leaders monitor transactions and respond more dynamically to events through alerting dashboards and insightful performance indicators. These indicators capture the data required to provide detailed analysis of shop floor activity and conduct scenario planning.

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Complete Asset Lifecycle Management

Maintenance, Repair and Overhaul (MRO) is the common industry term for a variety of software suites designed to manage maintenance processes. A maintenance facility may see a helicopter, tank, or aircraft dozens of times over its useful life. Additionally, over that lifetime, the configuration of the asset will have been updated many times. MRO software is designed to track assets that ‘come back’ versus manufacturing oriented software designed to manage assembly from materials. MRO software coupled with a shop floor work control system — something that can manage the work flow on the floor efficiently — provides a comprehensive solution.

Microsoft DynamicsTM AX MRO is a functionally rich system that offers management of operational and maintenance functions as well as control of your assets.

Asset Visibility lets you view and manage all activities related to assets, asset maintenance, and MRO inventory. Item Managers, Production Controllers, Project Leaders, and Maintenance Supervisors can use Dynamics AX MRO to manage physical assets, determine asset expenditures, forecast and schedule assets for maintenance, and retire assets at end of life. Inventory Managers use Dynamics AX MRO to manage purchase advices and inventory levels.

Dynamics AX MRO keeps a complete record of actual repair work done — materials used, people involved, etc. It also allows for the recording of incident and accident data. Field inspections and incident data are best captured in an “MRO Portal” that can be incorporated into existing portals or applications to provide a web-accessible method of reviewing historical data. Alternatively, any data from existing systems can be integrated with the solution to capture all maintenance activity for an asset.

Having a complete record of what has been done to an asset is critical, especially when a mishap occurs or when preparing a major overhaul. Using these capabilities over time to manage assets can reduce costs, increase equipment availability, and provide important capabilities. A good example of this would be the following scenario:

An investigation into the mishap may show that a part such as a rotor cuff is defective. Since maintenance has been tracked for assets and is linked in an integrated system to parts orders and repair programs, it would be simple to identify the defective lot from which the part came and ground only the affected aircraft. The query to ascertain the affected aircraft would take only minutes.

Even better, is the ability to perform increasingly accurate condition-based maintenance. Simply stated, this is when you are able to detect patterns in usage of an asset through maintenance records and/or environmental data and predict when a component is likely to fail, enabling you to plan maintenance rather than deal with the problem reactively. This will directly improve readiness and increase safety.

In short, the module delivers the tools needed to manage complex aircraft, vehicle or other asset struc-tures, and the interdependencies between assets integrated with maintenance management and history.

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Complete Asset Lifecycle Management, continued

The Maintenance cycle for any asset begins with the completion of the last maintenance action. This includes:

• Maintenance actions deferred from the previous maintenance cycle

• Items identified from in-service use (in aviation these are referred to as ‘Pilot Squawks’)

• The collection of mandatory service actions

• Available Asset approved alterations

• Regularly scheduled maintenance actions

• Battle damage repairs

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Service Oriented Architecture

Over the years, military commands have developed a variety of technology solutions to resolve problems and increase the security of their nation. While problem-solving is vital and a fluid process, solutions must also remain in a state of continuous analysis and betterment. For example, the sea of ‘disconnected’ legacy systems that has been developed over time has become costly and unwieldy to manage, and more importantly makes it difficult for leaders to get a true picture of the organization. To help military leaders develop more effectively and improve efficiency, the IT community has answered the call with a concept of system interoperability called Service-Oriented Architecture or SOA. Standards have been set and continue to be developed and refined in this area. One thing is certain: new technologies deployed must be able to ‘talk’ SOA from the earliest implementation — in sync, straight “out of the box” should be the constant goal. Right now, while COTS solutions may have a SOA interface, few are built from the ground up in this fashion. The Dynamics AX technology is an exception — an exceptional exception — in which each module interacts with others using a SOA approach. It is essentially built internally using a SOA model. There is no separate interface development tool that must be learned in order to develop interfaces to other systems that use SOA.

While it’s accurate to say Microsoft Dynamics technology is SOA-compliant, it’s more fitting to convey that Dynamics AX was built for SOA from the ground up. In fact, Dynamics AX leverages other Microsoft technologies using SOA that many customers already own for things like legacy integration (to non-SOA systems), reporting (using SQL Server Reporting Services), Portal (using SharePoint®) and Security (using Active Directory®). None of these are add-on products that only serve the Dynamics AX product, they are the tools our military customers already use. This has three main advantages:

• It vastly reduces cost compared to traditional COTS tools — customers are only paying for the value they derive from the modules and not having to underwrite development of an entire vertically integrated stack of software from end-user security through reporting tools.

• It dramatically simplifies administration by keeping functionality needed within Dynamics AX and leaving other services (reporting, security, etc.) to the other technologies. For example, there is no need to replicate an end-user security model within the application.

• It reduces development time and maintenance complexity by leveraging skills set associated with the other commonly used tools.

Multiple Depot Scenario

AX-MRO is a solution with core strengths in manufacturing and e-commerce, and strong functionality for the wholesale and services industries. It has been deployed in a number of scenarios where there is a preexisting ERP system or a need to a “regional” or division level distribution of functionality. These scenarios map directly to the structure of many military maintenance depots around the world.

For example, it can be integrated as departmental “spokes” to extend an existing enterprise “hub” system. These scenarios are common when companies need to bring new offices or departments on-line quickly, but are handcuffed by massive investments in their existing ERP infrastructure. These existing systems are often difficult, time-consuming, and expensive to customize or extend, or might simply be out of capacity.

AX-MRO also serves well as the hub in hub and spoke deployments. In geographically dispersed companies, for example, these deployments are often motivated by challenges with network bandwidth or reliability, time zones, language, or other considerations.

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Parts Ordering • Ability to manage simple or complex source of supply issues for parts ordering

• Integration with legacy applications

Integrated Scheduling • Reduced cycle time through scheduling that incorporates resources, parts, tools and master plans

BOM Management • Easy-to-use tool encourages routine updating of BOMs, which improves parts ordering and scheduling

• Allows for ongoing ‘data cleansing’

Electronic Technical Data • Simple access to technical manuals and data from the job card

• Capture of process knowledge to support transitioning of the workforce without losing productivity

Reporting • Better visibility into what is occurring on the floor

• Tools to support Lean/Six Sigma initiatives

Asset Life Cycle Management • Builds a complete picture of asset maintenance history

• Allows for predictive maintenance planning

• Provides smarter ‘mishap’ management (e.g. targeted maintenance groundings)

Services Oriented Architecture • Built with SOA from the ground up

• Agile system, allows for incorporation of data and functionality from other systems without lengthy integration projects

Conclusion

Technology alone will not reduce manufacturing execution repair cycle time and production costs. At best, technology improves processes, and enables individuals to have a better view into managing operations and decision making. With that in mind, Microsoft and our partners have developed solutions to address key pain points currently limiting many military maintenance operations. Here is a brief summary of those solutions:

Few benefits can be derived from software that is difficult for workers to use, difficult or time consuming to implement, and that does not align well with key problem areas.

Microsoft and our partners have solutions to offer based on our understanding of specific defense department needs. Beyond addressing business needs, we have always focused on ease of use and streamlined implementations as a way of reducing the cost of getting to the benefit of using software.

This summary of capabilities is intended to bring some awareness or a new perspective to issues you may face in your operation. We look forward to discussing any of our findings with you in detail and how they might apply to your organization.

For more information, please visit us online at www.microsoft.com/dod/logistics.

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Microsoft and its extensive network of partners provides the levels of technology agencies need to conduct their business, no matter what that business is, or how it might change. Every day, military organizations entrust their essential functions to Microsoft solutions. We’re helping those agencies and commands enhance their effectiveness — while cutting complexity, cost and risk — by doing more with what they already own. From headquarters to the front lines, if it’s vital to the military, it’s mission critical to Microsoft. www.microsoft.com/dod/logistics

Tectura is a leading Microsoft Dynamics partner and provider of Microsoft-based ERP, CRM, and technology solutions to mid-market companies, larger enterprises and their divisions. Tectura provides software, consulting, and IT implementation services to more than 5,000 clients in the distribution, manufacturing, healthcare, and service-based industries. Through these services, Tectura delivers business process improvements, greater efficiency, and a clear competitive edge to clients in over 60 countries. Customers benefit from unmatched experience and a solid commitment from more than 1,750 dedicated Tectura employees with 70+ offices throughout 21 countries across the Americas, Europe, the Middle East, and Asia Pacific. www.tectura.com

As a leader in the development and application of predictive analysis and process execution systems, Intercim has an extensive track record of helping discrete manufacturers improve their bottom line. With nearly 25 years experience in process engineering, software development and Aerospace and Defense manufacturing, the company is uniquely positioned to assist component fabricators, avionics, sub- and large-scale assembly and procedural test and control customers. Velocity by Intercim® is a commercial off-the-shelf solution used to meet regulatory requirements, harness Lean principles, manage quality processes and bridge process execution between design and production for a closed-loop product lifecycle management system. www.intercim.com

NGRAIN transforms the sustainment of complex equipment with 3D performance support solutions for the military, defense manufacturing, commercial aviation, and energy industries. NGRAIN increases equipment readiness by accelerating learning on complex equipment, enabling first-time-right performance, and reducing maintenance cycle time. NGRAIN is optimized for web deployment and portable devices. With NGRAIN, anyone can rapidly incorporate interactive 3D equipment simulations into sustainment applications, including courseware and technical manuals. Customers include all branches of the United States military, the Canadian Forces, and leading defense manufacturers and system integrators, including Lockheed Martin, Northrop Grumman, and CAE. www.ngrain.com

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