Parts and DMSMS Management Interrelations Chronology: Implications for the Future

Transcription

1 Parts and DMSMS Management Interrelations Chronology: Implications for the Future Parts Standardization Management Committee Meeting October 31 November 2, 2017 IDA

2 What to Look for in the Chronologies Parts Management Engineering oriented Parts management borne out of standardization It has been identified as a standardization consideration in Defense Standardization Program [Policy and] Procedures Manuals throughout the chronology Effective in reducing life-cycle cost DMSMS Both engineering and logistics oriented Production and design is engineering Supply chain is logistics DMSMS has always existed Became more important as the Department of Defense (DOD) influence on the commercial electronics market decreased Effective in reducing life-cycle cost 2

3 Policy, Guidance, and Leadership Chronology (and Outline) (1 of 3) 1971: First Military Parts Control Advisory Group (MPCAG) designated 1976: DOD Directive (DODD) , Diminishing Manufacturing Sources and Material Shortages (DMSMS), Dec. 3, 1976 DOD Instruction (DODI) , DoD Parts Control Program, Dec. 16, : MIL-STD-965, Parts Control Program, issued Apr. 15, : SECDEF Spare Parts Acquisition Memo, Aug. 29, : DEPSECDEF DOD Parts Control Program Memo, Dec. 12, 1984 DODD revised, May 16, 1984 DODI revised, June 27, : DODI revised, Oct. 30, 1985 Legend for slides 3 5 DMSMS Both 3

4 Policy, Guidance, and Leadership Chronology (and Outline) (2 of 3) 1988: MIL-HDBK-402, Guidelines for the Implementation of the DOD Parts Control Program, June 29, : DASD(Logistics) Keynote at DMSMS Conference, Mar. 14, : DODD , Defense Acquisition, Feb. 23, 1991 DODI , Defense Acquisition Management Policy and Procedures, Feb. 23, : DODD R, DoD Material Management Regulation, Jan (and current incarnations) 1994: Perry Memo, June 29, : MIL-HDBK-965, Acquisition Practices for Parts Management, Sept. 26, : Logistics & Material Readiness (L&MR) passed DMSMS responsibility to the Defense MicroElectronics Agency (DMEA) 4

5 Policy, Guidance, and Leadership Chronology (and Outline) (3 of 3) 2000: MIL-HDBK-512, Parts Management, Oct. 4, : ADUSD(Logistics Plans & Programs) (re)assumed leadership role for DMSMS 2004: Parts Management Reengineering Working Group (PMRWG) kickoff, Mar. 18, : Standardization Document (SD)-22 forerunner, DMSMS Guidebook, Mar. 20, 2005 (first official SD-22 published Nov. 1, 2006) 2007: MIL-STD-3018, Parts Management, Oct. 15, : SD-19, Parts Management Guide, Sept : Defense Standardization Program Office (DSPO) transitioned from L&MR to Systems Engineering (SE) circa 2012: Defense Acquisition Guidebook (DAG) 5

6 1971: First MPCAG Designated 1960: Parts Specification Management Report 1968: USAF established a parts control board for F-111 aircraft and requested the Defense Electronics Supply Center (DESC) in Dayton, Ohio, for engineering support on parts selection Benefits in terms of reduced item proliferation recognized Pilot test at DESC initiated April 1971: DESC designated as first MPCAG Potential MPCAG functions (engineering functions being performed in logistics organization) Provide engineering data to assist design engineers in parts selection Develop and maintain procedures for exchanging parts documentation Support DOD acquisition activities parts approval processes No references to DMSMS found in the literature surrounding these events 6

7 1976: DODD Issued DMSMS Background on need In 1976, DOD s share of global semiconductor market was slightly greater than 10% Continued emphasis on buying commercial (studies date back to 1972) DMSMS policy DoD Components shall assure that timely actions are initiated when a development program or an end item production or support capability is endangered by the lack, or impending lack, of manufacturing sources for items and material Office of Primary Responsibility (OPR): ASD(I&L) What did it say about parts management? Components responsibilities included using engineering, standardization, and technical organizations to assure that the most current standard or preferred parts are used in systems design and development 7

8 1976: DODI Issued Objective to conserve resources and to reduce life-cycle cost by reducing the varieties of component parts; promoting the application of established or multiuse items of known performance during the design, development, production, or modification of equipment and weapon systems; and applying techniques to assist system or equipment application managers and their contractors in the identification and selection of established or multiuse parts to enhance inter or intradepartmental system commonality, interchangeability, reliability, maintainability, standardization, and interoperability Policy An integrated parts control program using the support services of MPCAGs shall be implemented But no MIL-STD-965 existed OPR: USD(R&E) No references to DMSMS Note: The material in this slide is taken from the 1981 version of the DODI. Do not believe that there were substantive changes from the prior version regarding the facts on this slide. 8

9 1977: MIL-STD-965 Purpose Establish the guidelines and requirements for the implementation of a parts control program Describe procedures for the submission, review, and approval of program parts selection lists and changes thereto Parts control program objectives include the following: Reduce life-cycle costs Minimize the variety of parts used in design and therefore in inventory Promote the use of standard parts and parts with multiple applications Apply engineering techniques to assist acquisition activities in parts identification and selection Enhance interchangeability, reliability, and maintainability of military equipment and supplies No references to DMSMS 9

10 1983: SECDEF Spare Parts Acquisition Memo Near-Term Actions (within 90 days) Apply the DoD Parts Control Program to enhance competition. The optimum use of standard military parts or commercially available parts in development of new system:, will be mandatory 10

11 1984: DEPSECDEF DOD Parts Control Program Memo Military Departments and DLA requested to take the following actions: Ensure that the DoD Parts Control Program is applied on all applicable weapon systems, ships and equipment contracts as required by Secretary Weinberger's memorandum of 29 August 1983 and DODI Direct Program Managers to require that contractors implement the DLA Military Parts Control Advisory Groups (MPCAGs) recommendations unless a written waiver is obtained from the Program Manager for each contested recommendation Direct Program Managers to consult with the MPCAGs prior to rendering a decision on contested recommendations and also to provide the MPCAGs with feedback on implementation of their recommendations Prohibit Program Managers from reviewing contractors proposed parts already processed by.the MPCAGs unless there is a disagreement between the MPCAGs and the contractors 11

12 1984: DODD Revised DMSMS DMSMS policy It is DoD policy that DoD Components shall take timely action to minimize the impact on the acquisition and logistics system when a development program, end item production schedule, or spare part support capability is endangered by DMSMS. Accordingly, each DoD Component shall develop and ensure implementation, to the maximum extent feasible, of a method of identifying end item application for critical or system-essential items affected by DMSMS OPR: DUSD(Acquisition Management), under USD(R&E) What did it say about parts management? DOD Component procedures included impose the use of DoD parts control capabilities and the provisions of DoD Instruction (reference (f)) for screening parts going into new systems, equipment, spare assemblies, and subassemblies, thereby limiting the variety of part types and styles used in the design 12

13 1984: DODI Revised A substantive change was that the DoD Components [were required to apply MIL-STD-965] with appropriate data elements in contracts for advanced development, engineering development, production, and modification of weapon systems, subsystems, and equipment, including any engineering change proposals when the application of piece parts will be involved in which the acquiring DOD Component can foresee probable life-cycle cost savings Although MIL-STD-965 is referenced here, it was not referenced in the 1981 version of the DODI No references to DMSMS 13

14 1985: DODI revised OPR changed to ASD(P&L) What did it say about DMSMS? Mandatory application of the Parts Control Plan (PCP) shall be used To avoid the use of parts previously identified as Diminished Manufacturing Source (DMS) items where practical and feasible in accordance with DOD Directive (reference (g)) First time DMSMS referenced in parts management policy 14

15 1988: MIL-HDBK-402 Handbook prepared to assist DOD activities in properly implementing the PCP. Contains information necessary to conform to the PCP requirements of MIL-STD-965 What did it say about DMSMS? Parts from diminishing sources are deleted from Government Funded Baseline (GFB) parts lists to insure availability for the year period during which military systems requirement support Mandatory application of the DoD PCP shall be used to avoid the use of parts previously identified as Diminished Manufacturing Source (DMS) items where practical and feasible in accordance with DoD Directive (reference (g)) 15

16 1989: DASD(Logistics) Keynote at DMSMS Conference DMSMS Statement by the Deputy Assistant Secretary of Defense for Logistics I understand at your last symposium in Phoenix, Arizona, that there was a real concern about a lack of an Office of Assistant Secretary of Defense focal point for DMSMS. I want you to know that since that symposium I have volunteered to be that focal point Given as part of the keynote address of the Government/Industry Electronic Parts Nonavailability (DMSMS) Symposium, Williamsburg, Virginia, March 14,

17 1991: DODD DMSMS Canceled DODD revised, May 16, 1984 Indicated that the DMSMS content would be replaced by DODI , Defense Acquisition Management Policy and Procedures, February 23,

18 1991: DODI DMSMS Part 6, Section R, DoD Parts Control Program Canceled DODI Policy An effective parts control program shall be established in each acquisition program at the beginning of Phase II, Engineering and Manufacturing Development. It shall focus on reducing the variety of parts and associated documentation used in the system Procedures Directed the Defense Logistics Agency (DLA) to establish and maintain MPCAGs Directed program managers (PMs) to use MPCAGs and consider their evaluations Directed that each acquisition program establish a parts control program through tailored application of MIL-STD-965 o The program will focus on avoiding the use of parts previously identified as diminishing manufacturing source items when practical and feasible OPR DASD(PR)/SDM* changed to DASD(PR)/MM** in 1993 Almost no DMSMS material from the 1984 DODD was included * DASD(PR)/SDM = Director of Standardization and Data Management, Office of the Assistant Secretary of Defense for Production Logistics ** DASD(PR)/MM = Director for Manufacturing Modernization, Office of the Assistant Secretary of Defense for Production Logistics 18

19 1993: DODD R (1 of 3) DMSMS Established parts management procedures for material managers Materiel managers should participate with Military Parts Control Advisory Groups (MPCAGs) and Command Standardization Office representatives in the parts control program established in accordance with DoD Instruction (reference (b)) and MIL-STD-965 (reference (c)). Emphasis should be placed on review of the Program Parts Selection List (PPSL) and Non-Standard Part Approval Request at or prior to Preliminary Design Review (PDR) to ensure parts control and standardization is being adequately applied Established parts management cataloging policy The number of new, common items entering the FLIS [Federal Logistics Information System] shall be minimized through the use of standardization, parts control, and item entry control processes 19

20 1993: DODD R (2 of 3) DMSMS Contained three pages of DMSMS procedures No explicit mention of parts control in DMSMS procedures but included the following among DOD Component DMSMS procedures Ensuring, to the maximum extent practical through parts screening for potential technology obsolescence, that identified DMSMS items are not included in DoD systems during design, redesign, or production. This includes screening parts for current obsolescence, and for items that may be obsolete within the near future (1 5 years) and assessing the vulnerability of the parts to become obsolete. If an identified DMSMS item cannot be eliminated during these stages, it is the responsibility of the procuring activity to ensure that there is continuous part availability and post-production support 20

21 1993: DODD R (3 of 3) DMSMS Additional notes Current version (Department of Defense Manual (DODM) ) has similar parts management content In the current DODM , Defense Standardization Program (DSP) Procedures, September 24, 2014, the parts management language does not reference DODM Current version DMSMS procedures has similar implicit references to parts management 21

22 1994: Perry Memo DMSMS moving to greater use of performance and commercial specifications and standards is one of the most important actions that DoD must take Directed implementation of recommendations in the Report of the Process Action Team on Military Specifications and Standards Delete para 3C of Part 6, Section R, "DoD Parts Control Program" and substitute 3C Reprocurement : The parts control program will be applied to reprocurements of any repairable items which are defined by performance-based specifications. Multiple set repair parts for performance-based specifications should be avoided if an adverse impact upon logistics is demonstrated. The parts control program will be considered for application to any other type item for which the acquiring DoD component anticipates life-cycle cost savings 22

23 1996: MIL-HDBK-965 MIL-STD-965 was canceled 26 September 1996 and superseded by MIL-HDBK-965 MIL-STD-965 has been identified as a big problem by industry The process of the prime transmitting a parts list to the program office who in turn transmit it to the MPCAGs and then back again was very slow and done by mail In effect, the design was complete before parts approval was made Vocabulary changed from parts control to parts management Included tailorable options for defining parts management levels to provide guidance for programs that had been using MIL-STD-965 Downturn in MPCAG workforce ensued While DMSMS was mentioned numerous time, all of the options left the requirement for DMSMS management solely to the discretion of the acquisition authority No where did it explicitly state how parts management can impact DMSMS 23

24 1997: DMSMS Leadership Change DMSMS Supply chain integration (SCI) predecessor organization steps aside (because of other priorities) and assigns the Defense Microelectronics Activity (DMEA) as Executive Agent for DoD integrated circuit (IC) DMSMS activities 24

25 2000: MIL-HDBK-512 (1 of 2) Canceled MIL-HDBK-965 Took a performance-based approach to parts management Objective included Minimizing diminishing source impacts and parts obsolescence Parts management definition recognized its contribution to DMSMS management The practice of considering the application, standardization, technology (new and aging), system reliability, supportability and cost in selecting parts and addressing availability, logistics support, DMS, and legacy issues in supporting them throughout the life of the system DMSMS considered a parts management element Procedures for obsolescence management should be addressed which include proactive obsolescence forecasting for applicable part types (e.g., microcircuits) and plans for reacting and achieving solutions to obsolescence impacts as they occur and affect the program 25

26 2000: MIL-HDBK-512 (2 of 2) Detailed guidance, tools included the following: There are tools available to assist acquisition activities in mitigating the impact of part obsolescence. There are several commercial companies that supply services that identify obsolete parts and/or diminishing manufacturing sources and gives predicted life expectancy of parts. Other sources include GIDEP [Government/Industry Data Exchange Program] and the MPCAGs, which perform parts DMSMS obsolescence screening, data gathering and dissemination for the DoD and their contractors. One or more of these services should be an active part of the DMSMS and obsolescence program for every organization involved in the design and production of electrical and mechanical products 26

27 2002: DMSMS Leadership Change DMSMS DMEA Responsibilities Transition to ADUSD (Logistics Plans & Programs), predecessor organization to MR [Material Readiness], with Political Schedule C as Functional Lead 27

28 2004: PMRWG (1 of 2) July 2003: HQ DLA requested relief from the parts management program MPCAG workload was small Limited parts management efforts in the government ADUSD (Logistics Plans & Programs) directed DSPO to reengineer the parts management program DSPO established PMRWG [Parts Management Reengineering Working Group] (February 3, 2004) Defense Standardization Council (DSC) expanded scope of PMRWG to address parts management throughout the system life cycle (February 20, 2004) PMRWG kickoff (March 18, 2004, Lansdowne, Virginia) 28

29 2004: PMRWG (2 of 2) Major recommendations Make parts management a policy and contractual requirement Revitalize parts management within the systems engineering discipline Create a life-cycle part and component Center of Excellence (CoE) Develop improved parts management tools and metrics Improve DOD s parts management organization Educate, train, and create new communication (marketing) products Build key partnerships and relationships Better understand parts management s contribution to performancebased logistics objectives Led to the development of MIL-STD-3018, a major revision of the SD-19, and a Defense Acquisition University (DAU) course, among other things 29

30 2005: SD-22 Forerunner DMSMS No mention of parts management DAU courses developed soon thereafter Current version Parts management is a design strategy for standardization and reuse that can enhance the reliability of the system and mitigate obsolescence due to DMSMS. An up-front assessment of the risk of obsolescence should influence parts selection during the design process 30

31 2007: MIL-STD-3018 Superseded MIL-HDBK-512 DMSMS content similar to that which was in MIL-STD-512 In the objective In the definition of parts management In the use of DMSMS tools DMSMS remained as a parts management element and became a requirement for the parts management plan In order to manage the selection and use of parts, the contractor shall address the following elements in its proposal and parts management plan: Obsolescence management. Procedures for obsolescence management which include proactive obsolescence forecasting for applicable part types (e.g., microcircuits) and plans for reacting and achieving solutions to obsolescence impacts as they occur and affect the program. SD-22 provides guidance in the area DMSMS was an explicitly identified factor in selecting parts 31

32 2009: SD-19 Guidance on the implementation of MIL-STD-3018 DMSMS content expands upon the material in MIL-STD

33 2010: DSPO Begins Reporting to Systems Engineering DMSMS Transitioned from L&MR 33

34 Circa 2012: DAG changes Parts management had been an independent systems engineering design consideration, separate from standardization Parts management was incorporated into the material for standardization as a systems engineering design consideration 34

35 Conclusions (Some Basics) Parts Management Engineering oriented MPCAGs staffed with engineers Parts management born out of standardization Effective in reducing life- cycle cost DMSMS Both engineering and logistics oriented Production and design is engineering Supply chain is logistics DMSMS has always existed Became more important as DOD influence on the commercial electronics market decreased Effective in reducing life- cycle cost They are interrelated 35

36 Conclusions (Interrelationships) Parts management and DMSMS cross references in OSD guidance documents Prior to 1985 Parts management material generally did not refer to DMSMS DMSMS material discussed the importance of parts selection Subsequent to 1985 Steady improvement on both sides since early 2000s o Parts management MIL-HDBK-512 began a visionary change PMRWG led to MIL-STD-3018, SD-19, and DAU course o DMSMS Establishment of a full-time OSD position for DMSMS led to significant increase in interest and SD-22, DAU courses, and strategic objectives Consolidated program should help even more The communities still have concerns over senior leadership, inclusion in policy, general awareness, and effectiveness in programs 36

37 Conclusions (Senior Leadership on Paper) Parts Management OPR 1976: Engineering 1985: Logistics 2010: Engineering DMSMS OPR 1977: Logistics 1984: Engineering 1989: Logistics 1997: Engineering (sort of) 2002: Logistics 2010: Engineering Significant inconsistency 37

38 Conclusions (Policy and Awareness) Inclusion in policy Acquisition reform impacts Parts management processes stopped Top-level policy eliminated for parts/dmsms management in the early 1990s Awareness DMSMS Although skepticism has been voiced concerning the magnitude of the problem, awareness does not seem to be an issue Parts management There are instances where OSD leadership does not have a full understanding There are instances where program management does not have a full understanding DMSMS management teams in program offices are generally unaware of parts management activities Parts management training is not presented at systems engineering annual conference Improvements needed in policy and awareness 38

39 Conclusions (Program Office Effectiveness) DMSMS Estimate proactive government DMSMS management in about half of DOD programs Clear case can be made for increased cost avoidance with greater proactivity Hard to quantify the potential Parts management Less clear because of limited government involvement While there is significant analytical rigor understanding the costs of parts proliferation, there are no known multi-platform studies of how effectively proliferation is controlled today Consequently, it is difficult to make a case concerning the need for increased emphasis on parts management There is uncertainty about the extent to which effectiveness can be improved 39

40 Recommendations Continue improvements in parts/dmsms management guidance and continue to emphasize their interrelationships Establish and reinforce parts/dmsms management leadership roles and responsibilities in DODIs, DODMs, and guidance For example, supply chain, standardization, DAG, Life-cycle Sustainment Plans (LCSPs), Systems Engineering Plans (SEPs), and new DMSMS issuances Develop and execute plans for increasing the awareness of parts/dmsms management and their interrelationships Conduct case studies to demonstrate the need for additional emphasis on parts/dmsms management 40