SMCA Industrial Base Strategic Plan (IBSP) Presentation to ICAP 3 February 2009

1. SMCA Industrial Base Strategic Plan (IBSP)Presentation to ICAP3 February 2009 COL Andre Kirnes Project Director Joint Services PEO Ammunition Picatinny Arsenal, NJ 07806-5000 973-724-5257 andre.kirnes@us.army.mil

2. SMCA IBSP Purpose To provide strategic guidance and establish a management framework to posture the ammunitionproduction and logistics supply chain to effectively and efficiently respond to the Joint Warfighter’s current and future conventional ammunition requirements

3. Background • Requirement • DOD 5160.65/68, SMCA (Directive/Instruction) • Lead in the development and publication of an overarching conventional ammunition industrial base strategic plan that supports the Military Services' conventional ammunition requirements • IBSP Versions • Original signed Nov 2003 signed by BG Izzo and MG McManus • Nov 2004 update signed by BG Izzo and BG Radin • 2009 IBSP revision vetted by IB Stakeholders • OUSD, ASA(ALT), AMC, PMs, Depot/Plant CDRs, SMCA IB IPT, JMC, PEO, MIBTF/Industry, ARDEC and the other Services

4. Facts NTIB the Preferred Supplier of Critical Ammo End-items/Components BRAC 2005 Army Campaign Plan Imperatives (Prepare, Sustain, Reset, Transform) Increased Insensitive Munitions Requirements Ammunition Sourcing & Industrial Base Study 2008 GOCO Facility Use Contract Competitions Operating as Life Cycle Management Command Increased Organic Industrial Base Modernization Resourcing FY09 National Defense Authorization Act, Senate Report 110-335, p. 320 Assumptions Plan for Long Conflict (NMS) Continued High Training Optempo Transformation of the Industrial Base will Continue (Organic & Commercial) Uncertainty in Commodity Costs Tightening Environmental Requirements Facts and Assumptions(Framework for Efficient/Effective Support to the Warfighter) Includes Ammo Sourcing and Industrial Base Study Findings Incorporates BRAC 2005 Law References other Ind Base related SMCA Strategic Plans (Log, ARDEC, Demil, Log R&D Need to Re-Assess IB Goals, Objectives, Strategies, Content

5. SCMA IBSP Document Outline Section 1.0 Emphasis on Strategic Intent: Purpose, Vision, Mission & Business Tenets Section 2.0 Improving IB Mission Execution: Goals, Objectives, Supporting Strategies and Metrics Section 3.0 Organic Plants and Depots: Strategies to Support Operational Excellence Section 4.0 Commercially-Owned, Commercially-Operated (COCO) Supplier Base Section 5.0 General Acquisition Contracting Approach Section 6.0 FY09-13 Funding Profile (PBS, MCA, CIP, RDT&E LCPP) To Establish a Management Framework for a Responsive IB

6. SMCA IBSPVision & Mission Statement VISION Advance a world-class industrial base that delivers war-winning conventional ammunition to the Joint Warfighter • MISSION • To meet the Joint Warfighter’s munition requirements at the right time, right place, right cost and right quality. It is accomplished through advancements in: • Technology (product and process) • Acquisition Strategies • Supply Chain Management and • Collaboration & Planning with Industrial Base Stakeholders

7. SMCA IBSP Business TenetsThe SUPER SEVEN • Acquisitions and investments will be synchronized to ensure that required manufacturing and logistics competencies and capabilities remain available and viable. • Industrial base considerations will be factored into the acquisition process. Product will bear fully burdened cost, to maximum extent practicable. • The industrial base infrastructure will be sized to maximize operating efficiencies and to reflect strategic guidance and economic realities. • Private industry, as the principal ammunition supplier, will be provided incentives for investing in and sustaining the production base. • Systems acquisition will be utilized to the maximum extent practicable. • Opportunities will be identified and implemented for greater joint Service activities. • The culture of continuous improvement will influence all SMCA and industrial base-related strategies and subsequent activities.

8. SMCA IBSP Development Process A World Class Conventional Ammo Industrial Base Vision Mission BSC Perspectives Goal Meets Joint Warfighter’s Requirements (Right Time – Right Place – Right Cost – Right Quality) Business Tenets Commu- nication, Innovation & Workforce Perspective Finance & Resource Planning Perspective Joint Warfighter Perspective Process Perspective Optimize Production Base Readiness Optimize Depot Logistics Readiness Reduce Life Cycle Costs for all Ammunition (Organic & Commercial) Modernize Industrial Base Capabilities Improve Munitions Supply Chain Respon- siveness Recruit, Train, Retain The Best Workforce Promote Collabor’n, Commo throughout the IB Community Supporting Objectives and Strategies LSS Environment

9. Implementation Plan • Purpose: • Establish priority of work • Establish ownership and accountability within command structure • Gauge progress against performance measures • Track progress • Key steps • Identify action office for each objective (14) • Define objectives, select measures/targets, strategies • Plan operations • Monitor & learn • Report progress to industrial base stakeholders • SMCA leadership to annually review document to assess impact and changes in strategic direction Link Between Strategy and Operations is Critical

10. SMCA Industrial Base Strategic Plan Access Information • To obtain a copy of the Industrial Base Strategic Plan log onto: • http://peoammo.army.mil/PMJointServices/ • Point of Contact is: MAJ Mark Brodhage; 973-724- 9772, mark.brodhage@us.army.mil , or Mr. • David Turrisi Chung; 973-724-7100, • david.turrisichung@us.army.mil

11. Backup

12. Difference Between 2004 and 2009 SMCA IBSP Revisions • Re-affirms Purpose, Revises Vision and Mission, Re-affirms Business Tenets • Tenets called Overarching Strategies in 2004 rev • 7 goals and 14 objectives vs. 5 goals and 16 objectives • Executable objectives clearly related to goals’ intent • Identifies commercial sector need for viable business environment • Incorporates BRAC 2005 Law • Updates GOCO and GOGO plans for FY09-16+ • References other IB related Strategic Plans (Log, ARDEC, Demil, Log R&D) • Includes Ammo Sourcing and Industrial Base Study Findings • Army Campaign Plan and ARFORGEN Reqts • Facility Competitions • Uses Balanced Scorecard Approach in LSS IPT environment