The Opportunities and Challenges of Product Lifecycle Management Within the Department of Defense

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1 The Opportunities and Challenges of Product Lifecycle Management Within the Department of Defense May 15, 2008 By Kevin Borek Department of Defense (OSD) Office of Business Transformation 1 kevin.borek.ctr@osd.mil x145

2 The Mission The Department of Defense is chartered with maintaining a state of military readiness the ability to mobilize and employ resources at a moments notice in response to emergency or national crisis anywhere around the globe on demand. DoD, at its root, is a service fulfillment organization, built upon a complex mix of engineered products, interrelated systems and relationships DoD isn t a manufacturer, but configures, maintains and remanufactures products within its inventory Organizational emphasis is on mission vs. financial efficiency, but cost obviously matters 2 Goal: Defense of the Nation at Best Cost

3 A Complex Organization The DoD is arguably the most complex enterprise in the world: Annual budget over $700B DLA spend alone over $70B annually, just in hard consumables! A very old enterprise, with many legacy processes Roughly 1.5M military service members, millions more in supporting roles Complex mix of weapons systems, supporting tools and equipment Extremely long asset lifecycle / high degree of technological dependence Complex organizational relationships and geographic separation All operating within in a Federated Bureaucracy under the direction of 500 CEOs in Washington! 3

4 With a Legacy Product Data Management Environment Legacy DoD Environment: Product data management solutions are generally loosely confederated - an artifact of older business processes and data formats Problem: Many discrete/decoupled legacy business applications Mix of legacy government formats and modern model data Legacy data is generally not linked with the associated product structure Model data is treated as an engineering (not an enterprise) asset 4

5 The Challenge Weapons systems are more dependent than ever upon commercially driven technologies and supporting business processes and so are competitors 5 Geographically and organizationally diverse sources of supply Sophisticated underlying technologies Complex, interdependent organizations & development techniques Rapid technology assimilation & shorter product half-lives And.very product data-centric Synthesis is the new competitive competency What needs to be done?

6 One Part of the Solution: Invest in PLM Product Lifecycle Management (PLM) is an evolving set of business principles, organizational constructs and information management systems used in the governance of modern, technically complex and globally distributed assets. PLM is more about how an organization manages it s people, processes and products than any specific technology investment. It s about how product information is managed across organizational boundaries and how people interact with this information throughout a product s lifecycle. As a business management technique, PLM is product (item) vs. organizationally-centric and emphasizes intellectual property management and protection across organizational boundaries in collaborative, arms-reach business engagements. 6

7 Why Emphasize PLM & Product Data? DoD adoption of PLM principles and alignment with the Industry PLM/ERP Value Chain will yield: 7 A faster technical response to evolving threats Lower-risk, more cost-effective supplier relationships Better integration with supply chain partners Lower inventory carrying costs Fewer work-around contracting and support strategies More efficient legacy product sustainment And lifecycle product data management is a critical component of PLM/ERP transformation efforts Provides single source of authoritative product data Facilitates enterprise linkages and communication Standardizes data management and exchange processes

8 Enterprise Catalog (FLIS) General information about item Specific information about variant Sourcing data: Acme, United, Federated, etc. General Spec. Filter XXX Source Info. Variant Info. XXX-1 Variant 3 Variant 2 As-Designed Vehicle Engine Block Carb Filter XXX-1 DoD Product Data Requirements (just like Industry!) Structured Product Information Variant 3 Variant 2 As-Manufactured Vehicle Engine Block Carb Glue Filter XXX-1 Variant 3 Variant 2 As-Maintained Vehicle Engine Filter XXX-1 Product A Data Emphasis: Piece Part Requirements. (DLA/ICP) Data Emphasis: Engineering Design (Contractor/DoD PMO) Data Emphasis: Manufacturing Processes (Contractor/Depots) Data Emphasis: Maintenance Functions (MRO/Field Support) Representative Tech. Data: Internal Specifications Qualification Data/Reports Vendor Data Sheets/Specs MSDS/Environmentals Representative Tech. Data: 3D CAD Models / 2D Drawings Simulation & Reliability Data Schematics Specifications & Documentation Engineering Parts Lists Software/Firmware Representative Tech. Data: Assembly Documentation Test Procedures Routers Tooling Drawings and Specs. Test Reports Manufacturing Materials Info/MSDS Representative Tech. Data: Technical Manuals/Operation Docs. IETMS/Procedures Performance Data/Reports Training Documents Configuration Records Maintenance Records Assoc. Business Processes Consumables Reprocurement Forecasts Inventory Mgmt/Control Cost Analysis/Improvement Vendor Analysis 8 Assoc. Business Processes: Design / NPI / Acquisition Engineering Analysis Engineering Change Mgmt. Configuration Mgmt. Failure Mode Analysis Reliability Studies Cost/Performance Studies Assoc. Business Processes: Production Management Mfg. Process Development Inventory Mgmt. & Control Quality Control/Improvements Forecasting Engineering Change Mgmt. Cost Improvement Common: Business Rules, User Authentication, Authoritative Sources, Data Views, Bills of Material, ECP/ECN Workflows Assoc. Business Processes: Maintenance Processes Configuration Management Reliability Studies Inventory Management/Control Forecasting Training

9 DoD PLM Data Vision Lifecycle Requirement Planning Product Concept Product Definition Product Development Product Introduction Product Support Disposal and Recycling Concept Refinement A B C Technology Development Systems Integration Systems Development And Demonstration Production and Deployment Operations & Support Full Rate Sustainment Disposal Pre-Systems Acquisition Systems Acquisition Sustainment The primary objective is to establish a single-source of authoritative product data through the product life cycle Engineering Provisioning Advanced Planning Supply Chain and Scheduling Management Maintenance / Repair and Overhaul Integrated Change Control Process Revision-Controlled Weapon System Documentation Engineering Drawings System Specifications Technical Orders Product Support Documentation Parts and Items Data Deficiency Reports Maintenance Plans Safety Data Operational Requirements Acquisition Documentation Air Worthiness Documentation OSS&E Documentation 9 Original Source: PTC

10 DoD PLM Deployment Challenges Alignment with industrial model based product data management initiatives is obviously desirable: Common data repositories & linkages to enterprise management systems Global product data standards & exchange formats (DoD and external) Contract terms, data rights Roles, responsibilities and rules of engagement However, there are some DoD-unique challenges which must be considered: Law, Policy & Instruction Enterprise definition Complex weapons lifecycles & legacy data management practices 10

11 Law, Policy and Instruction DoD operations decisions are intimately linked to Law, Policy and Instruction: US Code: Title 10 Armed Forces DoD Defense Acquisition System DoD Operation of the Defense Acquisition System DoD M Procedures for the Acquisition and Management of Technical Data FARs Federal Acquisition Regulation, Defense and Component Supplements Congressional Depot Caucus: 50/50 rules and many others, not always in agreement and with some unintentional outcomes 11

12 Influence of Law & Policy Law & Policy influence DoD PLM implementation: Asset ownership / management responsibility Systems acquisition contract rules Data rights & delivery Government-specific data formats (LSA, forms, 2D, etc) Congressionally driven maintenance & support requirements Service assignments / staff rotations This mix of guidance has had some unintended consequences! Acquisition programs are generally uniquely managed PM s emphasize systems performance over sustainment Funding emphasizes hardware over data rights/management Limited focus on enterprise-level PLM strategy post-acquisition 12 Bottom line: Many DoD business processes currently don t support the migration to commercial model/simulation based product management

13 The Product Data Pyramid Available Product Data Contracting Agency Top Level Outline Dwgs, Tech. Spec., Installation Manual/Dwgs, Training Documentation, High-Level Boms, Reliability, Test and Quality Data, etc. Tier 1 (Prime) Tier 2 (Sub) Tier 3/4/5 13 Ships, Planes, Spacecraft, Vehicles, etc Systems Integrator Radar, ECMs, Weapons, Hydraulics, Propulsion, Transmissions, Control Systems, etc. Subsystems Suppliers Radomes, Displays, Electronics (box/boards), Gears, Fans, Power Supplies, Antennas, etc. Component Piece Part Suppliers Feeder Materials Electronic Components, Paints, Coatings, Adhesives, Metals, etc. Outline Drawings, Detailed Drawings, Systems Specifications, Systems Engineering Data, Systems Software, BOMs, Schematics, Subsystems Specifications, Interface Dwgs, Subsystems Documentation, Software Interface Specs, Models, Simulation Data, Component Piece Parts, Reliability Test and Quality Data, etc. Subsystems Specifications / BOMs, Outline Dwgs, Subsystem Interface Specs, Subsystem SW/Firmware, Schematics, Mechanical Models/Detail Dwgs, Simulations, Component Piece Parts, Mfg / Test, Reliability Test and Quality Data Component Specifications, BOMs, Detail Dwgs., Models, Simulation Data, Vendor Data, Reliability, Test and Quality Data Problem: Generally - Limited data rights between suppliers Few data interchange formats Limited electronic media at lower tier Paper is still source at lower tiers

14 Product Data Requirements Product data requirements are determined by business process Often, data needed for weapons support is buried within the contract pyramid! 14

15 The DoD PLM Enterprise Evolving missions, technologies and threats are driving greater demand for joint Service engagement and improved process efficiencies But, how does one define a PLM-serviced Enterprise within DoD? By Service Component like a corporate division? By product vertical (aircraft, ground vehicles, turbines, etc?) By support organization (DLA, AMC, ALC, Depot, etc.?) By geographic region? All of DoD like a corporation? Include supply chain partners? What about foreign Gov. partners? Fortunately, the product data management enterprise is somewhat independent of the service fulfillment enterprise, allowing for some flexibility. 15

16 DoD Product Data Enterprise View Product Data is Both Generated and Consumed Over Lifecycle Enterprise Data Operations Functions F/A Reliability Acquisition Supply Chain Functions Maintenance Functions Modeling and simulation files Specifications Drawings and CAD output files Software (firmware/hardware) Schematics Bills of Material Serialized configurations Operating instructions Maintenance instructions Work instructions Documents Information exchange requirements define the product data enterprise 16

17 A Complex Lifecycle Average life-expectancies of complex weapons systems are easily 15 years plus. In some cases (aircraft, vehicles) it isn t uncommon for assets to be 25 or 30 years old, with all attendant problems. PLM Challenges: New and old inventory with mixed data, maintenance and deployment strategies Configurations to support mission-specific tasks Geographic separation Ownership of data management responsibility shifts with asset age New inventory product data management Remanufactured product data management Need to support rapid technology insertion 17

18 New Products.. DoD Requirements Dev. Contract Concept and Assessment (SDD) Demonstration and Manufacture (LRIP/FRP) In Service and Disposal Supply Chain Pyramid Need to maintain alignment between product revisions & configurations over long periods As Designed Configuration Feedback As Planned Configuration As Manufactured Configuration Feedback Prime Contractor As Maintained Configuration DoD 18 Many Impacts on Systems Availability

19 Eventually Become Legacy Products! DoD Requirements Existing product inventory: New & legacy data availability & formats Configuration availability/accuracy Information in many different places As Originally Designed As Re-manufactured In Service and Disposal As Designed Configuration As Planned Configuration As Manufactured Configuration Feedback As Maintained Configuration Feedback Prime DoD 19 Supply chain pyramid direct-to-dod sales

20 With Government Unique Data Formats Even with PLM, modern OEM design techniques ECP OEM Design change made in 3D CAD Design configuration controlled within PDM PLM As designed configuration 2D CAD drawings developed Drawings & BOM copied to CD s /FTP/Snail mail Drawing BOM structure created manually PDF files generated 20 Technician manually loads data into PLM Drawings only no 3D Loss of configuration with OEM Create product structure Fill in metadata Load drawings Validate load PLM Need to adopt modern design and mfg. data requirements in CDRLs can lead to stranded legacy DoD data!

21 Data Federation?. Could be Complex! Requires coordination between multiple suppliers, Primes, Subs & DoD & established PLM/PDM infrastructure 21 Source: TARDEC

22 And New & Old Need to Co-habitate: Hybrid Data Management Model Modern OEM Design/Data Mgmt. Techniques New Products OEM Modeled Designs Design configuration controlled within PLM OEM PLM Model-driven data management Legacy Products Old 2D CAD Old Config. Records Digital Paper Old Docs Technician manually loads legacy product data into PLM Design Modularity Federated Data Exch. Contract-Driven Data standards Create product structure Fill in metadata Load drawings Validate load DoD PLM Combined Products Hybrid data management solution 22 Legacy Design/Data Mgmt. Techniques

23 23 Conclusion: PLM is a DoD Priority! Think like an extended enterprise! DoD PLM investment is an organizational priority Ever-more complex development & support environment Rapidly evolving technologies and threats Higher dependence upon fast-moving commercial technologies For DoD - No Silver Bullets Standards have a place, but are only part of the solution Organizational vs. purely technological challenge A little strategy and a lot of organizational coordination, blocking, and tackling Teamwork and extended enterprise focus is key Treating suppliers as an extension of the DoD enterprise is important PLM needs to be linked to ERP deployments and other tool investments Data rights, management, and obligations need to be clearly understood DoD (AT&L) has embarked on a multi-year effort to address these challenges

24 DoD AT&L PLM Initiative A multi-year AT&L-sponsored program to modernize the business processes associated with DoD Product Lifecycle Management. Including: Evaluate the strengths and weaknesses of current DoD processes. Identify the best commercial data management strategies/practices. Establish/Manage a comprehensive program for process modernization across the Department in conjunction with Component and Support organizational leadership. 24 Measure outcomes from improvements in technology insertion, organizational business processes, and increased efficiencies within the Acquisition, Procurement, and Logistics enterprises.

25 Thank You! 25 7/8/