Sovereign Industrial Capability Assessment Framework Update
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1 Svereign Industrial Capability Assessment Framewrk Update Matt Ramage, Assistant Secretary Defence Industry 10 Octber 2017
2 Svereign Industrial Capability Assessment Framewrk Guidance Defence will evlve the Pririty and Strategic Industrial Capability plicy t imprve the identificatin and management f svereign industrial capabilities that develp and supprt ur Defence capabilities The Framewrk will imprve identificatin and management f the svereign industrial capabilities at the strategic level thrugh an imprved identificatin and management plan fr svereign industrial capabilities; and at a prject level Thse capabilities that are s imprtant t Australian Defence missins that they must be develped r supprted by Australian industry because verseas surces d nt prvide the required security r assurances we need Clearly supprt Defence preparedness and peratins, be technically and cmmercially feasible and affrdable fr Australian industry t maintain Six assessment criteria: Prtectin f Intent; Independence f Actin; Interperability Limits and Benefits; Assurance f Supply; Essential Skills Retentin; and Leverage Cmparative Advantage
3 Svereign Industrial Capability Hierarchy Svereign Defence Capabilities (e.g. JORN) that Defence must maintain an independent capability t perate and sustain Svereign Industrial Capabilities that are particular surce f strategic advantage, r where their absence pses an acceptable risk t Defence s ability t achieve its missin Svereign Industrial Enablers (e.g. the Naval Shipbuilding Industry) are elements f the industrial base that directly supprt Defence preparedness and peratinal requirements Industrial Base Svereignty (e.g. Advanced Manufacturing and Heavy Engineering) that delivers enablers and allws Australia t quickly mbilise industrial resurces during crisis
4 Svereign Industrial Capability Principles The initial Svereign Industrial Capabilities must be: Realistic will cntinue t rely n internatinal partners fr many f ur majr platfrms and systems with limits t svereignty Abslute pririties t achieve the Defence missin where Australia must have an independent industry capability. Small subset f defence industry plicy and pprtunities Clear and actinable nt s brad as t be unmanageable, but nt s narrw that they are fixed in current cmpanies r technlgies Managed acrss strategy, frce design, capability, and industry planning understand them prperly and cnnect t decisins Prvide the means t test the plicy and its implementatin
5 Svereign Industrial Capability Determinatin Used a cmprehensive prcess t identify and refine the prpsed Svereign Industrial Capabilities flwing frm: Strategic guidance Defence White Paper and Defence Planning Guidance Applicatin f the assessment criteria and supprting questins acrss the Integrated Investment Prgram capability prgrams Refinement with strategy, frce design, capability and prgram managers f abslute pririties fr Australian industry svereignty Finalisatin f the scpe, scale, and descriptin f the initial pririty Svereign Industrial Capabilities Finalisatin f the implementatin plan, timings, and resurces
6 Pssible Svereign Industrial Capability Implementatin Apprach Svereign Industrial Capability Management System Capability Life Cycle Identify and review Svereign Industrial Capabilities Frce Design Guidance Prgram/ Prject Definitin IIP Prgramming/ Prcurement Australian Industry Capability Requirements Sustain and adapt in-service Dispsal Svereign Industrial Capability Industrial Health Assessment and Supprt Strategic management by Defence Industry Plicy Divisin Capability life cycle cnsideratin Defence Innvatin Hub/Next Generatin Technlgies Fund Centre fr Defence Industry Capability business assistance, skilling, and grants Exprt Oversight Cntrl and Supprt Technlgy radmaps and regular health assessment
7 Questins?
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