Prime Contractor. Parts Management. Presented to DoD Parts Standardization and Management Committee Ronald Froman, Boeing Technical Fellow 1 Nov 2016

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1 Engineering, Test & Technology Boeing Research & Technology Prime Contractor Parts Management Presented to DoD Parts Standardization and Management Committee Ronald Froman, Boeing Technical Fellow 1 Nov 2016 Ronald Froman, 9/22/2017, PrimePM.ppt 1

2 Prime Contractor Parts Management Support End Customer Parts Management Statement of Work (SOW) or Performance Work Statement (PWS) Requirements Translate end customer requirements into affordable prime and subcontract supplier work statements Determine if more appropriate to flow customer requirement to subcontractor or retain at prime Control costs by promoting proven parts management plans, processes, and lessons learned Minimize re-inventing the wheel Match MIL-STD-3018 requirements to the scope, rigor, and requirements of the DoD customer program Ronald Froman, 9/22/2017, PrimePM.ppt 2

3 Subcontractor Parts Management Subcontract Supplier Parts Management Strategies Subcontractor Parts Management Plan developed with Prime Plan guidance Subcontractor greater autonomy and flexibility to meet requirements Subcontractor Parts Submittals to Prime for Review Supports smaller suppliers having limited personnel or functional expertise Parts Control Boards Scheduled structured reviews occurring over a period of time May work well with concurrent customer involvement / decision-making Supports programs with multiple subcontractors where a consistent approach and standardization across subcontractors is strongly encouraged Ronald Froman, 9/22/2017, PrimePM.ppt 3

4 Parts Management Primary Elements Parts Management Plan (MIL-STD-3018) DI-SDMP Parts Management Plan Part Selection & Standardization [Program Parts Lists and Corporate Baselines] Obsolescence Management (SD-22 and SAE STD-0016) DI-MGMT DMSMS Management Plan Counterfeit Prevention (DFARS and SAE AS5553) DI-MISC Counterfeit Prevention Plan Lead Free Controls (SAE GEIA STD-0005) DI-MGMT Lead Free Control Plan (LFCP) Ronald Froman, 9/22/2017, PrimePM.ppt 4

5 Parts Management Plan Review Parts Management Focal Assigned to Each Subcontracted Assembly Subcontractor requested to include or utilize a copy of the prime contractor checklist with their subcontractor Parts Management Plan submission Prime contractor focal performs preliminary review of the subcontractor parts management plan using checklist from prime contractor plan and any subcontractor submitted information After prime contractor focal review, the focal brings the Parts Management Plan submittal to a Boeing Parts Board review of Subject Matter Experts, along with drafted checklist dispositions Parts Board reviews the dispositions and adjudicates any areas of uncertainty or disagreement Parts Board plan disposition sent to the subcontractor providing either approval or requested changes Ronald Froman, 9/22/2017, PrimePM.ppt 5

6 Effective and Logical Parts Management An Effective Parts Manager Understands when it is appropriate to implement new or state of the art technologies to Provide a technical performance edge Reduce costs Improve reliability and maintenance Understands lessons learned from past programs Prevents a new program from repeating identified past mistakes Understands when times and circumstances have changed Evaluates manufacturer claims through data reviews and testing Determines if past component technology problems have been overcome by new manufacturing techniques or materials Ronald Froman, 9/22/2017, PrimePM.ppt 6

7 Parts Management Cost Avoidance Missing or poorly executed Parts Management is evident quickly and enduringly on DoD programs Limited standardization, poorly managed component part costs parts unavailable quickly leading to unsupportable designs Regular part related problems; total program cost impact difficult to quantify Well Executed Parts Management Cost avoidance through standardization and minimizing unique parts count Avoids creating unique infrastructure (tooling, drawings, design models, inventory bins, qualification tests, etc.) Streamlines and creates strategic supplier relationships Studies put cost savings due to new part creation avoidance at > $20K per part avoided Well Executed Obsolescence Management Is mandatory to manage life cycle mismatch between electronic commodities and DoD platform programs Is essential to avoid unexpected catastrophic program impacts Avoids or defers redesign or replacement costs 10X, 100X, 1000X magnitudes greater than the near term investments Ronald Froman, 9/22/2017, PrimePM.ppt 7

8 Customer Relationships Parts Management Engineer Gatekeepers for the program part requirements ensure the right parts requirements are addressed Consults regularly with his/her next level customer, as well as his subcontract team members Balances requirements between customer needs, his/her company s contractual performance, subcontract suppliers, and component part suppliers, parts management tool and service providers, policy and requirements DSPO, DLA, & PSMC! May travel as needed to visit any or all of the above work collaboratively as a team Cultivates relationships at all of the above levels Ronald Froman, 9/22/2017, PrimePM.ppt 8

9 Key Excerpts from MIL-STD-3018, Parts Management The comprehensive [Parts Management Plan] PMP is the total complex of organizations, processes, and other elements involved in the cradle-to-grave management of parts. It includes choosing, designing, acquiring, stocking, requisitioning, moving, managing, issuing, and using weapon system parts across DoD and industry. The selection and application of parts are the responsibility of the contractor whose primary requirement is to meet the performance objectives of the system or equipment. To minimize the proliferation of parts and the logistics spare parts sustainment cost for DoD, parts standardization and selection shall be considered a key objective in parts selection. The selection of parts that are readily available within the DoD system, have continued projected usage within DoD, and with a documented technical description available to the DoD and industry are preferred. The contractor shall select parts suitable to the design application Ronald Froman, 9/22/2017, PrimePM.ppt 9

10 Conclusion Boeing Research & Technology Component Engineering- Parts Management A Prime Contract Parts Management Engineer Applies technical knowledge of diverse component parts Understands unique aspects of various part commodities and the most important criteria for each commodity Promotes standardization Limits technical and performance risks of component parts Communicates parts management requirements and deliverables to others Works directly with end customer, subcontractors, and component part suppliers Produces large scale cost avoidances for the program supported Ronald Froman, 9/22/2017, PrimePM.ppt 10

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