presented to: american metal market aerospace materials ... · aerospace materials conference . ......

Date: 24 April 2012

Defense Sector Downturn: An Army Aviation and Missile

Perspective of Budget Cuts on the Raw Material Sector

Presented by:

Robert Olson Aviation Industrial Base Team Lead

U.S. Army Aviation and Missile Research, Development, and Engineering Center

Presented to:

American Metal Market Aerospace Materials Conference

Approved for public release; distribution unlimited. Review completed by the AMRDEC Public Affairs Office 20 Apr 2012; FN5799.

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Defense Sector Downturn: An Army AVN and MSL Perspective

AMCOM’s Aviation and Missile Industrial Base is managed under a TRIBE Philosophy

SMDC/DLA

JIBWG

AR700-90

JACG

Inter Service Support

Agreements

NATIBOAgreements

IndustrialCapability

Assessments

Spare Part Sustainment

Manufacturing Technology

Defense Production Act

Title III

Defense Priorities & Allocation System

Supply Chain Analysis

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AMRDEC GOAL: Sustain the war fighter by ensuring the integrity of the products we buy, backed by a viable industrial base while maximizing life

cycle cost effectiveness.

Right Part – Right Cost – Reliable Source

Increased Competition

Rapid Prototyping

Parts Conformance

New Source Approvals

Technical Data Rights

Reliability Improvements

Obsolescence Mitigation

Cost Reduction Programs

Lead Time Reduction Initiatives

Improved Spares Support


Spare Part Sustainment

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Javelin

PATRIOT

GMLRS

Gray Eagle

Aviation and Missile Command Weapon Systems


Lakota

Chinook

Apache

Blackhawk

K i o w a

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Bell

Boeing

Sikorsky

McDonnell Douglas(Hughes Helicopter (1984))

Sikorsky

Boeing

Bell

AmericanEurocopter

AmericanEurocopter

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

LUH Contract Award

Aviation and Missile Sectors Pre-1993 to Present

Are our Primes Right Sized or Balanced for future Aviation and Missile Requirements?


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Few New Rotorcraft Programs on Horizon

Current EstimatesPlatform First Flight for Phase Out DateChinook CH-47 1961 2040Kiowa OH-58 1966 2025Blackhawk UH-60 1974 2050 (M Model)Apache AH-64 1975 2030-2040 (Block III)Light Utility UH72 2006 2036

Army Aviation Program Status Materiel Solution Analysis

Technology Development

Engineering & Manufacturing Development

Production & Deployment Operations & Support

-Armed Aerial Scout (AAS) –Pre-MDAP

-Improved Turbine Eng Program (ITEP) – Pre-MDD

-Medium Range Multi-Purpose (MRMP) VTOL UAS AOA

-Multi Role Helicopter Program

-Kiowa Warrior CASUP (OH-58F) -UH-60 Black Hawk -AH-64 Apache Block 3 -MQ-1C Gray Eagle -CH-47F Improved Cargo Helicopter -UH-72A Lakota Utility Helicopter

-AH-64D Longbow Apache-CH-47D Helicopter-UH-60A/L Recap-OH-58D Kiowa Warrior-OH-58A/C Kiowa Warrior-UH-1 Huey- UAS Hunter (MQ-5B)- UAS Gray Eagle, Block 0--UAS Shadow (RQ-7B)- SUAS Raven (RQ-11B)

SustainmentA B C FRP

AoAPreliminaryDesignReview

CriticalDesignReview LRIP

IOT&E IOC

MDD

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“Defense companies that survived broad

cuts in the Pentagon’s fiscal 2013 proposal are likely to see their

programs continue over the next five years, baring any

additional reductions (i.e. sequestration).”

- Defense News 12 March 2012

0

1

2

3

4

5

6

7

8

9

2011 2012 2013 2014 2015 2016 2017

Curr

ent$

in B

illio

ns

Army - Aircraft and Missile Procurement (Budget Authority)

Army - Aircraft Procurement Army - Missile Procurement

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016 2017

Curr

ent$

in B

illio

ns

DoD Topline (Budget Authority)

DoD Base DoD OCO

Source: DCMA – Industrial Analysis Center, DOD FY13 Green Book

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Value stream analysis produced 16 areas for improvements & action teams are addressing each of these areas

– On-hand inventory reduction – Depot inventory reduction – Repair program analysis – Invalid due-ins – Back order reduction – Unliquidated obligations – Administrative lead time reduction – Production/repair lead time reduction – Repair cycle time reduction – Acquisition strategy & sourcing – Metrics – Strategic communication – Forecast accuracy – Training – Product verification audit – Demil process

Partnering with Army Materiel Command on supply chain transformation initiatives

– Supplier relationship management – Forecasting – Sales & operations planning – Strategic sourcing – Metrics – Human capital

Supply Chain Initiatives

BOEING CH-47 Blade R&O

Process

Receive Damaged Blades

C/T 2 hoursW/T 2 hoursP/T 4 hours

Employees1st shift – 2 2nd shift3rd shift

-Receive blades in can-Remove blades form can- Ready blade for weight

Shipping & Receiving

DCMA

C/T 1 hourW/T 4 hoursP/T 5 hours

Employees1st shift – 12nd shift3rd shift

-Perform receipt insp- ID missing components- Weigh blade- Process paperwork*ID asbestos (if asbestos is found blade will be sent off site to MARCOR 2-4 weeks

Weight Station


Employees1st shift - 22nd shift3rd shift

- Remove end cap- Remove weights

* Some weights are corroded and can take 1-2 days for removal. * On occasion weights are so badly corroded that they must be removed at a machining center, taking 1-2 weeks.

Weight Removal

Boeing CH-47 Rotor Blade Repair Process

C/T 6 hoursW/T 24 hours P/T 30 hours

Employees1st shift - 82nd shift3rd shift – 5

- Remove liner & potting from root end * Only performed on 3rd shift

Repair & Overhaul


Employees1st shift - 3.52nd shift - 13rd shift - 1

- Take 9 x-rays shots for root end evaluation

* WIP can wait as long as 5-7 days

X-Ray



- QC performs initial inspection- QC writes up and enters assessment into MER. (4 hours)

NDT performs UT inspections- upper skin- lower skin- shank- lag damper windings(4 hours)

Inspection Bay



- Receives MER assessment from QC.- Performs physical touch inspection.- performs x-ray review. (2 hours)

* secondary process: approx 80% of blades receive incremental assessment / disposition (approx 6 hours)

Engineer Assesment



-Admin & work loading

Planning

C/T 140 HoursW/T 120 hoursP/T 360 HoursFPY – 75%


30 potential repair tasks / 16 tasks will requires UT inspection prior to moving on to next repair. See page 2 for break down of repair tasks.

Repair & Overhaul

C/T 10.5 hoursW/T 24 hoursP/T 34.5 hoursFPY – 98%

Employees1st shift 2nd shift - 13rd shift – 1

Lag Damper- prep & load winder- Wind- Cure

Trim Tab – clean & prep- apply adhesive- apply to blade- tape to hold in position- apply heater- cooler

Trim Tab & Lag Damper

C/T 12 hoursW/T 12 hoursP/T 24 hoursFPY – 98%

Employees1st shift - 22nd shift - 13rd shift

- Prime- Paint- Stencil- Cure- Prep for transport to whirl tower

Paint

C/T 168 hoursW/T 48 hoursP/T 216 hoursFPY - 85%


- Teeter- Whirl - Repair- Teeter- Whirl- can & prep for shipment

Whirl Tower

4

1

0

10

12

0

0

29

0

6

1720 in-process9 waiting

3 In-process3 waiting

2 hours

2 hours

4 hours

1 hourVA - C/T

NVA - W/T 24 hours

6 hours

48 hours

4 hours

4 hours

4 hours

24 hours

8 hours

0 hours

8 hours

0 hours

4 hours

120 hours

140 hours

24 hours

10.5 hours

12 hours

12 hours

48 hours

168 hours

C/T= 367.5 Hrs

W/T = 298 Hrs

P/T= 665.5 Hrs (27.72 work days)

C/T 14 hours per day x 10 days (2 weeks)W/T 24 hours per day x 5 days (1week)

Boeing Reported Time 450 calendar days

318 work days

WIP

Assumption that long repair time blades are what we saw waiting in the inspection area during our Nov 2010 trip. This could also account for the significant time difference between process map and what Boeing Reported.

C/T – Cycle (touch) Time W/T – Wait TimeP/T – Process Time


Goal: 30%

Inventory Reduction

Budget Savings Obtained Through Improved Processes

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Supply Chain Process Improvement Activities


Blade BuildHeel Process Kaizen

Blade OverhaulPrimeVSM

Whirl TowerVSM

Blade ShippingKaizen

Blade AdminVSM

Ti Cap VSM

In WorkIn Planning CompleteTBD

NCAD

Blades from LARS

CommercialOverhaul

New BladeEnterpriseMapping Activity

Depot Overhaul

Ti SupplierVSM

Ti SupplierKaizen

ShippingKaizen 2

• Supply Chain Mapping

• Lean Six Sigma

• Buffer Inventories

• Vendor Managed Inventories

• Material Substitution

• Shared forecasts

• Vendor Roundtables

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What does this mean to Raw Material Suppliers? • Rotorcraft production programs are fully funded with fleet size

increasing slightly through 2017.

• Army Aviation and Missile ALT and PLT Process Improvement efforts will shrink the spare part inventory, but not demand requirements.

• Current weapon systems are mostly based upon old material specifications with limited sources of supply.

• As new systems are developed, industry must assist in promoting newer material insertion.


Raw material demand is expected to be Impacted

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Summary Aging platforms and few new start programs on horizon.

Extended lifetimes for current rotorcraft programs.

High OpTempo (especially Rotorcraft sector) is expected to continue and is leading to faster aging.

Demand for spare parts and overhaul is high and likely to continue for an extended period of time.

AMCOM is pursuing efforts to reduce inventory investment cost by focusing on lead-time reduction – not by buying fewer parts.


Communication Throughout The Supply Chain Is Needed

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Special Thanks To:

AMCOM Office of Continuous Improvement

AMCOM Integrated Materiel Management Center

AMRDEC Engineering Directorate

Defense Contract Management Agency – Industrial Analysis Center

University of Alabama in Huntsville, Office of Enterprise Innovation and Sustainability

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Industrial Capability

is the Key to National Defense

- Adam Smith, The Wealth of Nations


presented to: american metal market aerospace materials ... · aerospace materials conference . ......

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