Scott s first assignment at Boeing was working as a Production Operations Procurement Cost Analyst for the F/A-18F to E/A-18G conversion.

Transcription

1 Phase I Submission Name of Program: Boeing C-40A Program Submission category: Sub-System Sustainment Name of Program Leader: Scott M. Dieckhaus Phone Number: (W), (C) Scott.M.Dieckhaus2@Boeing.com Postage Address: P.O. Box 3707 MC 4A-02 Seattle, WA Name of Customer Representative: CDR Warren Crouch Phone Number: jimmie.crouch@navy.mil Bio for program leader: Scott Dieckhaus is the C-40A Program Manager responsible for profit and loss, as well as Boeing s lifecycle support of the Navy s fleet of C-40As. This includes aircraft production, sustaining engineering, and contractor logistics support contracts. Dieckhaus has deep experience with Boeing; prior to this assignment, he was a project manager on Boeing s P-8 program. In this role, Scott was the lead negotiator on the Low-Rate Initial Production 3 Contract ($1.9B value) and project manager for major production structural modifications (Harpoon Weapons and AAS Radar Production Integration). Prior to that role, he was a part of the Boeing Commercial Airplanes (BCA) Sales and Marketing organization, assisting airlines with purchases of new airplanes. Previous assignments include a role as Contracts Administrator for Boeing in the Rotorcraft Division of Global Services and Support (GS&S) and Phantom Works. Scott's primary duty was negotiating contracts with NASA and the U.S. Army. He also worked as a Contracts Administrator on the F/A-18 E/F and E/A-18G, and was the contracts lead on the development portion of the exportable Active Electronic Scanned Array (AESA) F/A-18 Radar contract, serving a dual role as contracts administrator and liaison to procurement. Scott s first assignment at Boeing was working as a Production Operations Procurement Cost Analyst for the F/A-18F to E/A-18G conversion. Prior to Boeing, Scott was a Brand Manager for a video production company. He holds a Master's in Business Administration and Bachelors of Science in Marketing from Maryville University in St. Louis. He enjoys hunting, fishing, hiking, and is an avid runner. He also enjoys volunteering for Habitat for Humanity AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 1

2 Phase I Program Narrative - 1 Program Overview: Boeing manages three Federal Acquisition Regulations (FAR) Part 12 commercial contracts for the C-40A Program, providing aircraft production, modifications, and upgrades; sustaining engineering; and contractor logistics support. The C-40A is flown by the Navy Reserve s Fleet Logistics Support Wing (FLSW), which provides 100 percent of the Navy s organic airlift capability. The Navy has five squadrons operating 14 C-40A aircraft at five CONUS locations and three primary OCONUS detachment locations. The 15 th aircraft will deliver in November Working with its C-40A Navy customer, Boeing has developed a program that leverages the 737 Next Generation (NG) commercial infrastructure, saving the government hundreds of millions of dollars in development, production, and sustainment costs - all while achieving 95 percent aircraft availability. The C-40A is fully FAA-certified, and is operated and maintained to Federal Aviation Regulation (FAR) Parts 121 and 145. The Navy purchased a minimum level of spare parts. The majority of repairable parts are contractor-supplied. Based on a Boeing-developed Post- Delivery Support Plan, Boeing assisted the Navy with obtaining FAA approval to exchange parts with commercial airplane parts pools. The Boeing C-40A Program has provided sustaining engineering services to the Navy since the delivery of the first aircraft in Sustaining engineering services include configuration management, service engineering, maintenance planning, technical manual revisions, engineering evaluations, engineering studies, and Operational Performance Tool (OPT) administration. Essentially, Boeing provides the Navy services that are normally performed by an airline s engineering department. The Boeing C-40A Program provided Interim Contractor Support (ICS) from 2001 through 2004 and Contractor Logistics Support (CLS) from 2010 to-date. As the original equipment manufacturer (OEM) and integrator of the C-40A, Boeing provides extensive domain knowledge that extends beyond the C-40A to the commercial 737NG from which the C-40A is derived. Value Creation: From inception, the C-40A Program focused on delivering value and affordability to our Navy customers. The aircraft was commercially developed at Boeing s cost, and fully FAA certified, allowing Naval Air Systems Command (NAVAIR) to avoid significant engineering and test and evaluation development costs. The program started in 1997 with funds in the National Guard and Reserve Equipment Account (NGREA) sufficient to purchase two commercial off-the-shelf narrow-bodied aircraft to replace the Navy s aging C-9 medium-lift aircraft. NAVAIR competitively selected the 737NG. As such, the Navy became the first customer for the C (Convertible) aircraft, with Boeing Commercial Airplanes (BCA) fully funding the development and FAA certification of this major derivative of the 737 aircraft. To gain approval of this certification approach, 20 NAVAIR engineers worked closely with BCA Engineering to gain an understanding of the commercial certification processes including design, data collection, analyses, and test and evaluation. Boeing Integrated Defense Systems (now Boeing Defense, Space and Security, or BDS) funded the development of the FAA-certified Combi supplemental type certificate (STC) to provide the Navy the required capability to simultaneously carry passengers and cargo on the main deck of 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2

3 Phase I Program Narrative - 2 the aircraft. The development, installation, and tests and certification of the Combi STC was accomplished at Boeing s Wichita, Kansas Modification Center. In conjunction with the aircraft, Boeing developed a Post-Delivery Support Plan that maximizes the use of the 737 commercial infrastructures for technical data, scheduled maintenance planning, configuration management, service engineering, training, spares, and support equipment. Significant costs were avoided by using: Commercial operations and maintenance manuals in place of unique Naval Air Training and Operating Procedures Standardization (NATOPS) and Navy Tech Pubs Commercial low-utilization schedule maintenance program in place of a typical Navy Phased-Maintenance program Commercial scheduled maintenance task cards in place of Navy Maintenance Requirement Cards (MRCs) Commercial aircraft spare parts pools in place of the Navy purchasing spare parts Commercial depots in place of Government depots for scheduled maintenance Commercial flight crew and maintenance training courses and material in place of Navy Training Detachment classes Obtaining agreement from NAVAIR, Commander, Naval Air Forces Reserve, the C-40A Type Commander, and the FLSW leadership with the strategies listed above took several years; they were validated and approved through operational experience once the aircraft were delivered and began operating. Hundreds of millions of dollars of cost to the customer were avoided by following these strategies. Through the Boeing team s diligence, the Navy continues to reap the savings benefits of development costs spread across the commercial 737 fleet. Together, Boeing and the NAVAIR team keep the C-40A updated with the latest operational, safety, and reliability enhancements, most of which were accomplished by incorporating commercial service bulletins. This is a practice we continue today, resulting in reduced cycle time and improved operational efficiency. This approach required an effective solution to protecting Boeing s and suppliers intellectual property and giving the USN adequate data to operate and maintain and train. We have negotiated our latest aircraft production and sustaining engineering contracts by clearly defining what data rights would be delivered. For CLS, Boeing has teamed with best-in-industry partners Delta TechOps (DTO), the largest airline FAR Part 121/145 maintenance, repair, overhaul (MRO) provider in North America, which provides commercial common parts and all depot-level maintenance; JK Hill and Associates (JKH), a leading field support provider that delivers efficient world-class service providing inventory management and field service representatives at the main operating bases; and Aviall, a wholly-owned subsidiary of The Boeing Company and the world's largest provider of new aviation parts providing spare parts not supported by DTO. Additionally, we have transitioned from using Boeing depot facilities to DTO, which installs the same or similar service bulletins on more than s in its fleet and their MRO customers 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3

4 Phase I Program Narrative - 3 schedule for, and cost of, the service bulletin installations. The most recent of these modifications was the installation of winglets and Nitrogen Generation Systems on the C-40A fleet over the last three years. Organization Processes and Team Leadership: The majority of our lean C-40A organization has more than 10 years of experience on Boeing s C-40 programs. This enables the Boeing/Navy team to continue the effective partnership we have established across all procurement, aircraft modification and upgrades, sustaining engineering, and CLS contracts. By staying closely aligned, our team is familiar with all relevant aspects of the Navy strategy and mission, and can focus on proactively addressing support needs while incorporating changes in production, capability, upgrades, and other program changes. Boeing s C-40A Program is headquartered in Seattle and is the prime contractor and single point of contact for the Navy. Scott Dieckhaus is the C-40A Program manager, responsible for all contractual and operational requirements, as well as overall integrated management and performance of the Performance Work Statements of all three contracts. When needed, the full depth and breadth of the C-40A production and sustaining engineering personnel are available for technical assistance to solve service engineering or CLS issues ensuring high levels of C-40A mission readiness. Consistent Communication: We have established communication across all management and operational levels of our Navy customer. From our daily status report, bi-weekly meetings, quarterly Technical Interchange Meetings (TIMs) and an annual Program Management Review (PMR), we engage our Navy customers on a consistent schedule to discuss current and future work as well as specific issues and concerns. As a key management tool, Mr. Dieckhaus uses the Boeing ReMICS system (Reporting Management Information for Cost and Schedule), ensuring that Earned Value Management (EVM) is managed and reported accurately. It is a Web-based EVM metric generation tool used for assessing program health. In addition, the status of schedule performance, technical performance measures, risk management, action items, help needed, and supplier performance metrics are updated monthly. Additionally, Boeing provides the Navy with access to program information via a C-40A Web-based Information System (WIS). Customer- and supplieraccessible data include Contract Data Requirements List (CDRLs), parts repair cycle data, spares usage, service-provided, and FAA Forms. Our dedicated CLS organization, with CLS management located with the Fleet Logistic Support Wing at Naval Air Station (NAS) Joint Reserve Base (JRB) Fort Worth, together with experienced on-site support personnel at all five main operating bases, have enabled rapid response to fleet concerns and maximized aircraft availability. Adapting to Complexity through Innovation: As Boeing and NAVAIR were negotiating a new contract for C-40A aircraft number 13 and 14 in 2012, Boeing announced its intent to close the BDS modification center in Wichita, Kansas and plans to move its existing Wichita business to its Oklahoma City and San Antonio sites. The Wichita site was responsible for the C-40A Combi STC engineering, certification, and installation on the first 12 C-40As. With the closure 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4

5 Phase I Program Narrative - 4 of the Wichita facility, the responsibility for C-40A Combi STC engineering and certification moved to Oklahoma City, while the installation of the STC moved to Boeing s San Antonio modification facility. The existing Combi STC certification was predicated on the installation being accomplished by Boeing Wichita using Wichita manufacturing planning and Combi STC installation drawings. Wichita planning essentially called for Combi hardware to be installed per drawing. When the work transitioned, detailed installation instructions were not provided. San Antonio uses a different manufacturing planning system than Wichita used. Therefore, in addition to necessary design changes driven by BCA production revisions, the planning had to be rewritten for San Antonio s installation. The Oklahoma City engineering design team was virtually new. Fortunately, Boeing transferred key Wichita manufacturing planning and FAA Organizational Designation Authority (ODA) personnel to Oklahoma City. A detailed certification plan was developed and executed. Engineering personnel from Seattle and Oklahoma City were present in San Antonio throughout the installation to quickly solve any design and installation issues. Despite being a First-of-Model (FOM) installation for San Antonio, the modification went extremely well and the aircraft was delivered to the Navy one month ahead of schedule. Metrics, Measuring Performance: Over the 17-year life of the program, we have had five separate aircraft production contracts, three sustaining engineering contracts, and two logistics support contracts. The Boeing C-40A Program has met or exceeded nearly all contractual requirements. Thirteen of 14 aircraft were delivered on or ahead of schedule. Our sustaining engineering data deliveries have been on schedule. For our current CLS contract, Boeing has significantly reduced the cost-per-flight-hour for the C-40A fleet by teaming with best-ofindustry, high-performance, cost-effective suppliers DTO and JKH. We have delivered 97 percent of Non-Mission-Capable Supply (NMCS) and Partial-Mission-Capable Supply (PMCS) spare parts to the aircraft worldwide within the time required by our current contract. All scheduled and unscheduled depot maintenance has been completed by DTO ahead of schedule. Aircraft have been returned to service from C-checks an average of 26 days ahead of the contracted period of performance. In recognition of our performance across all of our contracts, our NAVAIR Contractor Performance Assessment Reports (CPARs) have contained positive comments and performance ratings of Very Good. Summary: The Boeing/Navy C-40A Program s approach to leveraging the commercial 737 infrastructure throughout the life of the program has resulted in reduced development cycle time for the production aircraft and upgrades. We continue to focus on reducing the cost for our Navy customer. We have worked closely with NAVAIR to develop creative solutions to provide the products and services that meet the needs of our C-40A customers. We have tailored our sustaining engineering contracts to provide core services within the Navy s budget. In addition to reducing cost, our on-time delivery of parts and early completion of all depot maintenance has increased the C-40A fleet availability for scheduling, saving the Navy millions of dollars of alternative DoD and commercial airlift costs AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5