Company Overview July 2013

1. Company Overview July 2013 Pennant Australasia Pty Ltd Melbourne|Wagga Wagga

2. The Australian experience Transforming LSAR to whole of life management. David Stephan

3. Overview • A history of Australia’s adoption of ILS/LSA • In-service case studies • Evolving trends and concepts • Industry use to support acquisition • Industry internal usage • Evolution to in-service CSDB

4. Australia’s adoption of ILS/LSA • Similar to other nations • Late 80’s early adoption • 90’s rapid growth for acquisition programs • Influenced in-part by Foreign Military Sales • Adopted US MIL-STD-1388-2B • Tri-service use varied • Army – Keen to adopt for acquisition & modelling • Air Force – Keen to adopt as part of Airworthiness • Navy – Required for Airworthiness compatibility, but with a CM & Pubs focus

5. Initial Adoption • Traditional 1388-2B approach • Acquisition of data • Desire to use for in-service support • Standardised datasets • Seen as more cost effective • Omega products • Adopted widely but initially used in isolation • RAAF – adopted for major acquisitions • ARMY – Focus on spares planning for deployments • NAVY – FMS acquisitions • No corporate mandate

6. First Evolution • Airworthiness extensions added to LSAR • Based on RAAF airworthiness policies • Naval extensions added to support CM & Docs focus • AAP5102.003 publication produced for Tri-Service • Although aerospace driven Tri-Service adopted • Some perception of LSAR = aerospace • Omega implements 5102.003 • Becomes the corporately supported tool • Wide industry adoption • CSDB recognised

7. Second Evolution • DEF(AUST)5692 replaced AAP5102.003 • 2002 • True Tri-Service • Revised airworthiness • Compatible with 1388 2B data sources* • Flexible for non-aerospace programs (1388 or 5692) • Provided a schema enabling further in-service integration • OmegaPS • ‘ADO mode’ developed alongside with DEF(AUST)5692 • ADO approved compliancy • Corporately supported by ADO

8. Current Evolution • DEF(AUST)5692 • Document Sponsorship moved to MRD • Maintenance Requirements Determination Centre of Excellence (MRD CoE) • MRD processes to support airworthiness requirements • Outputs approved Maintenance Policy • Scope for further adoption across all services

9. Current Evolution (cont) • MRD CoE updates 5692 to ‘Issue 2’ • Due for release • Improves and expands on MRD functionalities • Segments ADO specific data • Eases integration with in-house applications • Adopts a revised RCM approach based on MSG-3 • Adopts “M Servicings” to support in-house CMMS • Adds Work Area Assessments

10. OmegaPS ADO Mode • OmegaPS is ADO’s corporately supported LSAR product • ‘ADO Mode’ compliant to Issue 1 • OmegaPS to support Issue 2 • Pending publication release • Development underway • Issue 1 & 2 to be available separately • Upwardly compatible

11. Defence Use • Major Capital Procurements • Naval • Vessels • Weapon Systems • Land • Vehicle programs • Weapon Systems • Air • Platforms • Weapon Systems • Ground Support • Life Support

12. Defence Examples • Acquisition Projects • In-Service Activities • Note that some details have been intentionally obscured

13. Defence Acquistions • AUS DEFCON – Australian Defence Contracting • Standard templates • Tailorable • Includes ILS deliveries • Approaches to market • RFQ & RFT’s • Preliminary deliveries with bid • Models of proposed solutions • Formal evaluation • Acquisition – continuous improvements • Acquisition deliverables before in-service • In-service demands may drive acquisition

14. Hawk LIF program • First major acquisition utilizing ‘5692 • LSAR planned for through life utilization • Preliminary acquisition and modelling data • Delivery with modelling data • Vendor sustainment expected • OmegaPS • Analyzer – LCC • Successes • Validated LSAR delivered • Savings (unreported) • Vendor modelling/monitoring • Drove Analyzer improvements

15. LAND 121 • Multi-phase vehicle replacement program • 12500 vehicle replaced over several phases • Range from trailers to armoured transports • Phase 4 - RFQ/RFT requested LCC data in spreadsheet form • Simplified vehicle breakdown • Imported to Analyzer for initial evaluation • 40 plus vehicle variants/configurations analyzed • Sensitivities identified for further analysis • OEM ILS/LSA requirements – with MSA Option • LSAR anticipated as requirement for final selection • OEMs performing ILS/LSA now

16. Army Aviation • Supports Army Rotary wing assets • MRD team responsibilities • Functional Analysis • Maintenance Determination • Maintenance Task Analysis • Level of Repair Analysis • Weapon System Database • Promulgation of Policy • Performance Monitoring • Failure Analysis

17. Army Aviation • OmegaPS - Weapon System Database (WSDB) • Central point for Maintenance Policy and updates • Synchronised with CMMS tool • Live policy vs Approved policy • Feedback and review • Produces approved policy documents • Hardcopy or electronic from OmegaPS

18. Army Aviation Case Study • Relatively small numbers of platform types • Some aging platforms • Platform ‘X’ • Current capability being met • ROE constrained by DLM • DLM nearing capacity • Desired alignment of maintenance policy with other operators • Specific targets to achieve • Improved DLM turnaround

19. Army Aviation Process • Data collected from numerous sources • Existing LSAR • Existing Policy • Historical records (CMMS) • Other users • OEM guidance • Maintenance policy review • Review, rationalise, and totally rewrite • Validated policy • Implement without disrupting current policy • Spend minimal money • Limited timeframe to achieve

20. OmegaPS Analysis • Systematic Analysis of each policy element • RCM applied to each task • Facilitated restructuring of tasks • Allowed Draft policy proofing • Traceability of all decisions • Purified & Re-validated older LSAR data • Completed ahead of original schedule

21. Results • New maintenance policy • Aligns with other users & OEM • Eliminated taskings not relevant to end-use • Significant ROE improvement • Equivalent to additional airframes! • No requirement to expand DLM facilities • Minimal additional costs for DLM, offset at other levels • Continuous deployment supported • Turnaround reduced • No need to return to Australia

22. Industry Examples • AIR87 – Armed Recon Helicopter • LSAR originally developed to AAP5102.003 • Converted to DEF(AUST)5692 pre-final delivery • Vendor data management • Vendor product management • Customer (ADO) in-service support • Wedgetail • Co-developed LSAR for two major customers • Supporting both 1388 and 5692 • Integrated Product Teaming • Supporting customer KPI’s

23. Acquisition through Life • ILS/LSA Benefits recognised • Contributing to Strategic Reform Program • Moving to CSDB approach to acquisition • Better integration with in-service systems • Acquisition now aligning with in-service requirements • No more ‘Dead cats over the fence’ • Better modelling of tender data leads to better selections • Industry and Defence collaboration • Deliveries focused on sustainment • Vendor support aligned with capability requirements • In-service data feedback mechanisms

24. Company Overview July 2013 Pennant Australasia Pty Ltd Melbourne|Wagga Wagga