4 March 2008

1. UNCLASSIFIED Presented to: 16th Annual Conference on Quality in the Space and Defense Industries Quality Roles in Operations and Sustainment Approved for public release; distribution unlimited. Review completed by AMRDEC Public Affairs Office (3/3/08 FN# 3466) Presented by: Ms. Patti Martin Director, Engineering Directorate Aviation and Missile Research, Development, and Engineering Center RDECOM 4 March 2008 UNCLASSIFIED

2. Our World Challenges to Sustainment Life of Aviation & Missile Weapon Systems AVIATION MISSILE • Legacy Systems (30+ years) • Harsh Operating Environment • Maintenance Intensive • Analog to Digital • Obsolescence • Critical Safety Items • Downsized Industrial Base Stressed • Reliability Issues in a High Optempo World • Maintaining Quality of Items Produced • Short Design Life-10 year range • Long Actual Life-20 year range • Harsh Storage Conditions • High Optempo • Electronics Intensive • Exotic materials • Stockpile Life • Disposal • Electronics Obsolescence • Maintaining a Warm Industrial Base • Maintaining Quality of Items Produced Strong Sustainment Elevates Operational Readiness

3. Engineering DirectorateCore Functions Acquisition Management Systems Engineering Management Test and Evaluation Management Production Engineering Product Assurance • Technical Data • Supportability Engineering • Technology Development and Management • Hardware Development, Fabrication, and Integration • Business Management Serving Warfighter Needs Through World Class Life Cycle Engineering and Technical Expertise

4. Lest we forget… Be Decisive! Improve Our Support to the Soldier Every Day 2

5. Quality Issues Missile Nonconformance Test failures Around 34% Quality Metrics Increased Dependence on Supplier Base Industrial Base Capacity Prime not flowing Down requirements To sub tiers Dependence on Prime (Loss of Controls) Technical Data Insufficient Process Audits Source Approval Process Issues Ineffective Incentives for Quality Late Deliveries, Long Lead Times – Soldier Directly Impacted !

6. Importance of StrongSupply Chain IMMC/CCAD Tier 1A Tier 1B Tier 2A Tier 2B Prime 2 Prime 1 Raw Material Providers Tier 2D Tier 2C Tier 1C Tier 1E Tier 1D Prime 4 Prime 3

7. Ineffective use of the Systems Engineering Process “Trust Me” approach to quality Government oversight functions reduced if not eliminated Inadequate incentives to drive quality Lack of detailed requirements in performance specifications Inadequate verification of Quality Systems as a function of time. Ineffective Quality Metrics Ineffective Corrective Action Systems Lack of focused Continuous Improvement Programs First Article Tests Comprehensive/Effective Audits CSI Standards Design in Sustainment processes and procedures during design development. Proactive Quality and Supply Chain Management Leverage lessons learned and best practices observed Commit ourselves to measurable and enforceable results. Exercise the leadership required to develop, influence, and enforce manufacturing systems that adhere to the fundamentals of sound quality assurance “Real-Time” metrics and Information Sharing Information collaboration across the community. The Changing Faces of Quality As the pendulum swings… Lessons Learned Pre War Philosophy RED-RED-RED Items: 234 at Beginning of War; Now 46

8. The Goal: Strengthen the Enterprise Transform Integrated Collaborative Supply Network Raw Material Suppliers The Sequential Enterprise Second Tier Suppliers Distribution Points Orders First Tier Suppliers Raw Material Suppliers Command Prime 1st , 2nd And 3rd Tier Suppliers Depots Prime Manufacturers Depots Command Legacy Systems Example “Over-the-wall” Communication Transparent Communication

9. Price Emphasis Functional Silos Short-Term Buying High Levels of Safety Stock Expediting Due to Problems Historical Information Short Shipments Inefficient Use of Capacity Withhold Information Weakens our ability to support the warfighter Lowest Total System Cost Cross-Functional Teams Long-Term Commitments Compressed Cycle Times and Reduced Inventories Anticipating Future Capabilities “Real-Time” Information Reliability and Customer Service Focus Run Strategy & Synchronization Sharing Information Strong warfighter support through strong community commitment and focus The Collaborative Partnership The partnership process shifts the way we view our specific relationships Collaborative Partnership Arms Length Relationship

10. What Are We Doing About It? • Enhancing Strong Collaboration and Communication • Joint Army, Navy, Air Force Quality Group to Address Common Concerns • Host Annual Quality Summit – Government and Industry Collaboration • Follow up Focus Group April 2008 • 2008 Summit late August • Product Assurance Reviews between Program Offices • Reinforcing Strong Life Cycle Quality Programs • Standardized Quality Language for Contracts based upon Lessons Learned • Product Assurance Readiness Levels (PARLs) • Formed a Cross-Functional Supply Chain IPT for a Factory to Foxhole View • Continued Mapping of Critical Supply Chain Links • Stronger Link from Quality Results to Procurement Processes • Proactive First Article Management Pilot Case • Developing Strong Leadership and Technical Expertise • Performed Gap Analysis of Technical Expertise • Quality and Reliability Intern Program • Leadership Training!!!

11. Strengthening The Business of Quality Vision Proactive Understanding QUALITY LEADERSHIP Professional Commitment Discipline Communication World Class Quality is a Question of Leadership

12. Challenge I Challenge You to be Quality-Minded Leaders; to Influence People by Providing Purpose, Direction, and Motivation; and to Strengthen the Organization by Focusing on Quality and Continuous Improvement,Throughout the Life Cycle - Especially in Operations and Sustainment. Make a Difference – the Warfighter is Relying on Us!!! You cannot manage people to be quality-minded,you have to LEAD them to be quality-minded.

13. Questions?