I. Program Overview. Organization Name/Program Name: Program Leader Name/ Position/Contact information , Phone

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1 You must use the tabular format provided to submit your nomination form. Use 12 pt. Times Roman font to fill in the tables. Submit your document as a PDF file. Phase 2 is due June 30, 2014 to sruberry@comcast.net Submission and Questions Questions and submissions should be directed to Susan Ruberry Project Leader, Aviation Week Program Excellence Initiative sruberry@comcast.net I. Program Overview Organization Name/Program Name: Program Leader Name/ Position/Contact information , Phone Program Category Program Background: What is this program all about? (No more than one page). Describe: The overarching need for this program History of the program The product that is created by this program Scope of work original & updated Expected deliverables Current status of the program Northrop Grumman Corporation, Technical Services Sector, Unmanned Systems Integration Center (USIC) Hunter Unmanned Aircraft System (UAS) Program Robert J. Sova USIC Director / Hunter Program Manager 4067 Enterprise Way Sierra Vista, Arizona robert.sova@ngc.com (520) System Level Sustainment The need for Hunter can best be described by the words of our customer, the Warfighter. On February 8, 2012, COL Timothy Baxter, PM-UAS, presented Northrop Grumman s Hunter team with the Cribbins award at the AAAA Joseph P. Cribbins Aviation Product Symposium in Huntsville. This award is given to an industry, individual or company (hardware or services) that has been the most instrumental in assisting [the PM-UAS] an organization during the past year. In making the selection, COL Baxter cited Northrop Grumman s unwillingness to accept defeat and an overall 99.9% Hunter readiness rate since 1998, stating that Their attention to detail, willingness to go above and beyond the call of duty, never wavering in their support to the Warfighter by providing multi-sensor intelligence, surveillance and reconnaissance, and signals intelligence capabilities have led to the success of numerous operations while simultaneously protecting the lives of many soldiers. Hunter (RQ-5A) began its long and remarkable record as a program known for its superior reliability and quality performance by winning the Short Range Competition in The Army took delivery of a Low Rate Initial Production of seven systems (62 aircraft), in Hunter deployed to Kosovo from 1999 to 2002 and proved itself as an invaluable and highly reliable intelligence asset to commanders at all levels. While in 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 1

2 Kosovo it flew more hours than any other reconnaissance platform. Hunter was deployed to Iraq from the onset of operations, flying early collection missions out of Kuwait in It was a critical enabler during the first push into Iraq in March 2003, deploying Northrop Grumman embedded personnel alongside our Warfighters. Hunter remained operational in Iraq until U.S. combat forces were withdrawn late in It has also been deployed to Afghanistan since 2008 and currently conducts continuous 24/7 operations out of numerous locations. Since development, Hunter has flown over 150,000 hours, with more than 80% of those hours flown in support of combat operations. The Army indicates in its UAS strategic roadmap that the Hunter, in its current configuration, will continue service until II. VALUE CREATION = 20 POINTS Value: What is the value, competitive positioning, advantage, and return created by this program to your: Customers National interests, war fighter Company Strength, bottom line, and shareholders Scientific/technical value (particularly for R&D programs) Excellence and Uniqueness: What makes this program unique? Why should this program be awarded the Program Excellence Award? In 1995, the Hunter UAS was fielded to Alpha Company, 15 th Military Intelligence Battalion, Fort Hood, Texas, making it the first Army UAS fielding. In 1999, Hunter entered the battlefield in support of US and NATO operations in Kosovo, also making it the first UAS to enter combat. Since its initial entry into the Army, Hunter has continued to be a program of Army firsts; UAS weaponization, voice communications relay, integration of a Heavy Fuel Engine (HFE), incorporation of the Tactical Common Data Link (TCDL), and operations as a Signals Intelligence (SIGINT) UAS platform. We continue to support the Army s plan to keep the Hunter mission relevant. More than 40 complex payloads have been successfully integrated and flight tested on the Hunter system, making it one of the most versatile UAS test platforms flying today. Much of the Hunter payload testing and evaluation has resulted in the certification and incorporation of systems that are now commonly used on other Army UAS platforms, at a substantial cost savings. We continue to adapt and improve the Hunter system and its payloads by providing pioneering changes to the fleet that provides increased capabilities to the Warfighter. The program s ability to achieve these firsts and sustain a high level of performance is the result of customerfocused professionals that work tirelessly to provide superior Hunter lifecycle support. This has resulted in a legacy of excellence which has been recognized by our customer on numerous occasions, while at the same time benefitting all other Army UAS platforms AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2

3 III. ORGANIZATIONAL PROCESSES/BEST PRACTICES: (HOW DO YOU DO THINGS) = 30 POINTS Strategic: Affordability Management Describe how your program has addressed affordability from a solution, operational, business process, sustainment, strategic or other perspective. Strategic: Opportunity Management - Describe how your program has identified its operational and business opportunity, and manages this opportunity throughout the program s life cycle. Strategic: Strategic Supply Chain Integration and Cost Effectiveness Management: - Describe how your program is integrating its supply chain to assure visibility and adapting long-term cost effectiveness up and down the supply chain. Each year the Hunter program team is asked to reduce costs and keep the program affordable. Northrop Grumman and our Army customer Hunter team work to define opportunities for lowering costs costs of operations, sustainment, management and oversight. One solution has been to keep cost at the forefront of every program decision, so that it is a weighted factor in everything we do on the program and this has led to some innovative thinking not only by managers but by employees and soldiers at all levels, streamlining processes and improving efficiency without sacrificing performance or quality. Another is the implementation of the Earned Value Management System (EVMS) in FY2013. Both measures have helped to further reduce contract costs as well as Army program operating costs. Northrop Grumman and our Army customer have used the Hunter contract s Quick Reaction Capability (QRC) options to integrate and field new payloads and communications systems. In addition, we have anticipated obsolescence, upgraded electronics, and converted to an HFE. Our customer has developed a unique teaming approach where we not only provide Contractor Logistics Support (CLS), but also provide operational support for the Hunter system. This puts us in the best position to immediately identify technical/operational improvement opportunities. Frequent program management reviews, both internally and with the customer, and weekly management Integrated Product Team (IPT) meetings, create the environment where opportunities such as increased endurance, interoperability and improved engine performance are identified and tracked to execution. As a result, Hunter continues to be relevant and viable farther into the future. Hunter Global Supply Chain (GSC) manages over 35,000 different parts and 150 vendors and subcontractors. Utilizing forecasting tools, GSC reviews demand history and past material performance to determine which parts will be required to support the Hunter Operational Tempo (OPTEMPO), and lead times required. With this information, the GSC works closely with key suppliers to determine how Hunter s material demands can best be met relative to cost and schedule. GSC conducts weekly status 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3

4 Strategic: Operational Integration and Systems Engineering Describe the challenges faced by your program in terms of integrating the system into its operational environment and its impact on systems engineering planning and management. Operational: Planning, Monitoring, and Controlling - Describe your planning and resource allocation processes. How do meetings with vendors and shares performance data. The Hunter team continually looks for opportunities to lower long term cost through supplier innovations. For example, a replacement engine was identified with better performance, which significantly decreased costs. Due to the many available mission profiles and Hunter capabilities, the system is always in high demand by commanders in the field. As a result, the Hunter team is often faced with very demanding Systems Engineering (SE), integration and test, and deployment cycle constraints. Schedules are always tight because of the high OPTEMO in-theater. Limited assets prevent simple cycling of platforms while a system is being modified or upgraded at the depot. Consequently, the systems integration effort must be accomplished efficiently, and with minimal impact to deployed units. Our personnel support Government Owned, Contractor Operated (GOCO) systems throughout different theaters of operation. The greatest challenge is our ability to respond to field failures in locations where support is limited, and/or in extreme, harsh environments. Systems integration also becomes more challenging because of the shrinking aircraft and ground equipment real estate available, including weight limits. Consequently, integration planning must be thorough and detailed from the start. Close examination of requirements must be measured against available assets, weight and space. This is particularly important where weight and balance, and aerodynamic characteristics are especially critical. Engine performance, mission requirements and endurance are key elements that must be taken into account from the very start. Pre-planning is critical to the overall systems integration strategy and must involve applicable organizations including; Engineering, Flight Operations, Depot Maintenance, Quality Assurance (QA), Program Management, and all other government representatives, as required. Our core process approach includes sustained interaction with the PM, SE, IPTs, product users, customers, and vendors. It is a significant joint effort requiring close coordination and cooperation. Through our comprehensive SE process, challenges are overcome and successful systems integration is accomplished. Detailed planning is performed down to the control account level. Resources are planned and time-phased in accordance with the detailed baseline schedule and each element of cost (e.g. labor, material, Other Direct Costs, 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4

5 you monitor and review your program s progress and make corrections to keep the program on track? How have you worked with your customer to assure quality and communication without creating non-value reviews and audits that do not fit your program effort? Operational: Supply Chain and Logistics Management -- What processes, tools and relationship-building methods have you used to develop, refine and improve supply chain and stakeholder integration? Please indicate methods used to analyze/factfind regarding supplier proposals. This is one of the most critical needs of our industry please provide specific details and data that assisted you in gauging the effectiveness. Operational: System Integration, Testing & Reviews - Describe the activities and processes used to succeed in your system integration, and testing. How subcontract) is identified. The planned resources reflect sufficient budget necessary to perform the correlating activities in the detailed schedule. Once complete, the time-phased budget is baselined. Program cost and schedule performance are measured monthly. This measurement process involves reporting the status of control accounts consistent with the established earned value methods. As work is accomplished, value is earned and the applicable schedules and estimates at completion are reviewed, revised and updated as appropriate. Any cost, schedule and at-completion variances are addressed, explaining the cause of the variances, the impact to the project, and corrective actions necessary to mitigate the impact. These variances are generally addressed during monthly internal program management reviews, regularly scheduled customer meetings/reviews, and/or in customer reports as required. Northrop Grumman GSC continuously coordinates with our key suppliers, program engineers, program management, and executive management to discuss and evaluate solutions to solve and satisfy customer needs. Performance metrics allow Supply Chain Management to provide essential feedback to internal program and sector managers to ensure supplier product integrity. Supplier program reviews, conducted by an IPT of Supply Chain, Program and Quality management representatives build strong relationships and support open communication. Supply Chain relies on utilization of subject matter experts (SMEs) to focus on evaluation and analysis of supplier proposals. The technical evaluations and Price/Cost analyses that are provided form the basis of fact-finding to ensure that all proposal elements are adequately addressed, ultimately resulting in successful negotiations. Monthly cost savings reports are generated to track results and measure effectiveness. Suppliers are given a request for proposal (RFP) and a Statement of Work (SOW) that contain precise performance criteria. Once accepted, the subcontract is definitized and performance metrics are used to ensure that the supplier is performing within acceptable parameters. Once the contract is awarded, engineering creates a system integration and test plan that includes formalized baseline schedules and earned value planning packages. The overall systems integration and test engineering plan and effort includes prototype builds, fit checks, test plans, 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5

6 did you conduct system design and technical reviews? What innovations in processes or tools were used to further evolve this capability? Operational: Risk/Issue/ Opportunity Management - Describe the processes used to identify both risks and opportunity and to assure potential for both is addressed effectively. Please indicate any forward-leaning processes to support. Team Leadership: Team Culture and Motivation - Describe how you created your team spirit and culture, and accomplished entire team integration and individual team member motivation. Given the economic engineering testing, ground testing, flight testing, test reports, and both preliminary and final Engineering Change Proposals (ECPs). The internal Change Review Board (CRB) and Joint Configuration Control Board (JCCB) ensure that all documentation is complete, reviewed, accurate and maintained in Configuration Management. The JCCB is conducted bi-weekly to keep up with program demand and is facilitated to provide the customer with the most updated system design, while maintaining cost and schedule. For changes involving software, the use of the agile methodology for code development, thorough peer reviews, iterative and successive levels of testing and integrated configuration management have worked well on our program. Hunter s system integration success lies in fostering communication within the IPT with structured meetings, feedback and recognition. Our IPTs create an atmosphere where each member understands they are an integral part of the identification and solution process for each systems integration activity. Identifying operational risks and opportunities is part of the Hunter Preventive/Corrective Action Board (PCAB) process that incorporates test readiness and failure review information along with unit operational data. Risk and opportunity assessments are made using a standardized risk assessment matrix to establish the level of assessed risk posed to the program. Working through the Risk Management Council, the degree of mitigation needed to return the risk to a program acceptable level is determined and actions required, along with responsible parties assigned. The status of risk mitigation is monitored through the PCAB, program management review, and engineering test process with the overall risk being managed by the Hunter program leadership. Hunter risks are mitigated early on by developing a comprehensive Failure Modes Effects Analysis (FMEA) report which identifies potential failures with the highest consequences. This allows management to prioritize the most critical risks, and ensure they are addressed immediately, thereby reducing the overall cost per flight hour. USIC maintains a highly qualified staff with advanced degrees and certifications in a myriad of operational positions to include: Pilots/Air Vehicle Operators, Maintainers, QA, Engineers, Admin Professionals, Depot Technicians, Managers, Reliability and Maintainability (RAM)/logistics supportability and finance/contracts 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 6

7 environment and changes in the global marketplace, how did you assure your team changed swiftly and with agility? Team Leadership: Lessons Learned and Knowledge Management - Describe how you collect lessons learned and best practices, and how they are shared with your team and company to improve performance. Also how are you capturing expertise and knowledge to assure availability over the life of the program? Team Leadership: Leadership Development - How do you develop your team s skills and prepare/ develop future leaders? Best (& Next) Practices: Identify your program s specific Best Practices that you believe are unique, and could be shared with others professionals. We maintain a diverse staff of dedicated personnel that are experienced in deployments, rapid integration and test, training, and operations. Our personnel focus on customer support and satisfaction, which results in increased confidence and trust in our ability to meet or exceed their expectations. We also focus on individual and team recognition through innovative leadership, resulting in a very high retention rate while significantly reducing customer costs. Hunter personnel take pride in standing shoulder-to-shoulder with our military wherever and whenever they deploy. Centralized reporting of all audit results, corrective actions, inspection findings, failure review board and mishap prevention program reports ensure all information is included in the monthly PCAB review meeting. Attended by all levels of management, this is a forum for discussion, collaboration and problem solving based on continuous observation of program performance. Closedloop root cause corrective actions required by our Corrective and Preventive Action System (CPAS) are presented to the board to identify the susceptibility to failures across the organization. By addressing the lessons learned as part of the corrective action process, we ensure cross-functional and company-wide improvement. A program initiative focused on developing advanced training curriculum using experienced members of the Hunter team has been underway at the Dugway Proving Ground (DPG) training facility. Using the most experienced members of the hunter team to develop the curriculum serves two purposes: first, to document the expertise and in-depth knowledge of those veteran members of the Hunter team and second, to balance the curriculum with current guidance to improve materials. Through our Performance Management Process (PMP), employees work with managers annually to provide an assessment of their strengths and development needs. Individual goals are set to provide personal growth, and are reviewed and updated throughout the year. Year-end assessments are discussed between managers and employees to determine achievement of goals. Based on employee performance, managers identify potential candidates for future career opportunities. Program priorities are broken down into deliverable or reportable tasks. Daily IPT meetings provide exchange of information among supervisors and the customer to ensure priority tasks are accomplished while routine requirements 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 7

8 and become industry s Next Practices. are satisfied. For nearly 20 years, Training Management has supported UAS training across the globe. Automated tracking tools are used when possible and the Integrated Master Schedule (IMS), EVMS, and Change/Risk Management tools assist in the implementation of our management approach. Our depot serves as the Army Inventory Control Point (ICP) for the Hunter UAS, supporting CONUS and OCONUS theater locations. We use the Army s supply database, coupled with our own enterprise resource planning system for spares management. This database allows customer visibility of system assets and spares tracking. It also provides criteria for minimum stock levels, as well as supplying fielded sites with spares needed to exceed a 90% Fully Mission Capable (FMC) readiness rate. The Hunter system maintains an overall 99% readiness rate. IV. ADAPTING TO INNOVATION AND COMPLEXITY: (HOW DO YOU DEAL WITH YOUR PROGRAM S UNIQUE COMPLEXITIES) = 20 POINTS Identify the Program s Market Uncertainty level How new is your product to your market and users, based on the definitions below. Then describe how you deal and address this specific uncertainty: - Derivative an improvement of an existing product/system. - Platform a new generation in an existing product line. - New to the Market a product or system adopted from another market - New to the World - breakthrough product, never seen before Identify the Program s Technological Uncertainty using the definitions below. Then describe how you deal and address this uncertainty: - Low-tech: application of We have consistently demonstrated adapting to complexity, transitioning Hunter from one phase to multiple phases, one of which was a major platform upgrade from the RQ-5A to the MQ-5B configuration. The avionics suite was replaced, along with a transition from gas to HFE engines. This major configuration change was virtually seamless, due to mature processes and planning. It prepared us for other transitions, all executed without loss of support to the Warfighter. We also developed an Automatic Takeoff and Landing System (ATLS) to reduce/mitigate the risks associated with takeoff and landing. Hunter UAS Interoperability was a major breakthrough. The goal of this Army-wide PM-UAS initiative includes the use of common ground control stations and data links for all major Army UAS platforms. To create a flight control system compatible with the common NATO Standardization Agreement (STANAG) 4586 formatted data link messages, we inserted an interpreter/translator called the Hunter Aircraft Vehicle Specific Module (HAVSM) which converts messages from the STANAG 4586 to Hunter flight computer format. Overcoming this challenge successfully keeps the Hunter viable for the foreseeable future. The Hunter system incorporates technology ranging from low-tech power systems and HFE engines, through mediumtech subsystems consisting of existing technology, such as the flight computer and electronic sub-assemblies, to high-tech advanced payloads, optical cameras and sensitive SIGINT equipment. The challenge with the well-established 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 8

9 mature, well-established technology - Medium Technology: existing technology modified to meet new design requirements - High-Technology: recently developed new technology - Super High- Technology: nonexisting technology that needs to be developed during the program. Identify the level of your System Complexity using the definitions below. Then explain how you are dealing with this level of complexity: - An Assembly performing a single function. - A Sub-system fitting within a larger system. - A System a collection of subsystems performing multiple functions. - An Array a System of Systems ; a widely dispersed collection of systems serving a common mission. Identify the Pace and Urgency of your team s effort using the definitions below. Then describe how you deal with the program s pace requirements: - Regular timing no specific time pressures. Fast/Competitive time to market is important for competitiveness. - Time Critical there is an absolute and criticalto-success deadline. - Blitz there is a crisis element driving the need for immediate response Other Complexities & Uncertainties - Describe other technology is the risk of obsolescence which Hunter has encountered and managed. Obsolete equipment is often repairable by the OEM; however, it is not uncommon to require replacement technology that can be integrated into the system. Obsolescence is monitored to avoid impact on operational missions and delays in fielding new or upgraded systems. On the other end of the spectrum, Hunter contains some leading edge technology. Some of the most advanced payloads available provide the mission commander with an incredible array of tactical information on the battlefield. Hunter is a composite of systems/subsystems, and assemblies integrated into a larger, deceptively complex array, consisting of multiple aircraft systems, ground station systems, ground data link systems, and support equipment subsystems and vehicles. The aircraft system could also be considered an array, since it includes multiple advanced communications systems, precise inertial navigation systems, a flight control system with sensors and servo actuators, and payload systems ranging from state-of-the-art cameras to modern suites of advanced SIGINT equipment. The aircraft is a platform to carry payloads that are selected based on specific mission requirements. Payload configurations are designed to change with evolving customer needs, depending on the role the aircraft will play in the next mission. Hunter missions typically use three or four different payload systems simultaneously. Our flexibility and utility enables us to provide unparalleled support to our Warfighters. Our dedicated support to everchanging Warfighter requirements has kept the program between a blitz and a time-critical state for well over 10 years. We have demonstrated the unique capability to rapidly field time-critical payloads and upgrades in-theater with very little development time. This has ensured battlefield success, but has also provided a cost effective real-time solution to Intelligence, Surveillance and Reconnaissance (ISR) needs in a field environment. Over 40 payloads have been developed, tested, and fielded over the course of Hunter s impressive support to the Army UAS mission. PM-UAS has recognized the Hunter team as a leader in quick reaction capability. Multiple platform Radio Frequency (RF) capabilities and data link communications are supported, along with multiple payloads to meet the Warfighter s mission. Various system configurations require the use of an Asset Tracking Database, 2014 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 9

10 complexities and unknown factors faced by this program and how you addressed them. which we provide to our customer on a weekly basis. We also utilize an ECP Matrix to ensure all systems/subsystems have been upgraded to the latest approved configuration. V. METRICS (HOW DO YOU MEASURE PROGRAM S PERFORMANCE) = 30 POINTS (Note: We are not looking for $ results, but the relative percentage achieved. In particular indicate what specific metrics and data you are using that drive the program beyond standard measures of schedule, budget, and performance, and which have contributed to your program s focus and its success.) Customer - How do you measure the impact of your program on your customer and your customer s satisfaction? Include a description of your metrics, as well as numerical evidence. Performance - How do you measure your program s performance in traditional terms such as schedule, budget, requirements, and business results? Preparing the Future - How do you measure and assess the long-term contribution of your program to the corporation/organization? Team - How do you measure and assess the impact of your program on your team development and employee satisfaction? Unique Metrics - Describe any unique metrics you are using to measure your program s progress and how do you focus it for outstanding success. The unique partnership we have with our customer provides real-time feedback on how well we are meeting their needs. Our customer completes surveys that rate program satisfaction in 10 key areas including: performance, management, responsiveness and value. We are scored quarterly using the Contractor Performance Assessment Reporting System (CPARS), and are consistently rated above 98% in all areas. Daily reports from all units allow for rapid failure analysis, quick identification of trends, and development of proactive solutions. A budget baseline is established within 45 days of contract award. Based on the statement of work, budgets are spread and forecasted according to the Basis of Estimates (BOE s) which are prepared for the proposal. A cost performance report is prepared on a monthly basis to track the progress of actuals and earned value against the budget and is delivered to the customer. Earned Value methods are utilized in the monthly reporting process to track the progress of work performed. Variance analysis reports are provided to the customer for all monthly variances that break established schedule and cost variance thresholds. The success and strategic value of the Hunter program is measured by our program cost and schedule performance to plan, our past performance as measured by our customers, and our customer intimacy. These are leveraged in terms of achieving business growth and strategic partnering goals. Annual Gallup surveys determine employee assessment of Northrop Grumman, and measure the level of satisfaction with the company. In response to these surveys, managers ensure resulting actions are addressed and completed through the Employee Engagement process. The effectiveness of our CPAS process is measured by how well we manage change. By reducing the repeat of costly errors we improve our ability to successfully implement change. The PCAB is the catalyst for improvement, utilizing root cause and corrective action analysis as its core process AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 10