Creating Ammunition Enterprise Excellence

1. Creating Ammunition Enterprise Excellence 39th Annual Gun & Ammunition/Missiles & Rockets Conference Mr. Kevin Fahey Deputy Program Executive Officer for Ammunition (973) 724-7102 Kevin.Fahey@us.army.mil

2. Key Points • Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management. • Instilling discipline/System Engineering mentality in the way we look at every aspect of the ammunition enterprise • Still have major work to do in working with and communicating with our customers/external interfaces • The Ammunition Enterprise has Addressed Critical Needs and is Poised to Focus on Long Term Strategic Challenges

3. Ammunition Enterprise Responsibilities (As briefed to the AAE and CG AMC on 6 December 2002) MISSION LEAD SUPPORT ACQUISITION RDT & E PEO-AMMO JMC Acquisition Strategy PEO-AMMO JMC Hardware Production PEO-AMMO JMC Components for Renovation (Maint Spt) PEO-AMMO JMC APE (Maint Spt) PEO-AMMO JMC PAA Program / Budget / Receive Funding PEO-AMMO JMC Industrial Base Co-Lead LOGISTICS / SUSTAINMENT Receipt / Issue JMC PEO-AMMO Storage / Distribution Management JMC PEO-AMMO Inventory / Accountability JMC PEO-AMMO Safety / Security JMC PEO-AMMO Quality Assurance (ASRP / Surveillance) JMC PEO-AMMO Maintenance JMC PEO-AMMO Demilitarization/ Disposal PEO AMMO JMC Transportation JMC PEO-AMMO OMA Program / Budget / Receive Funding JMC PEO-AMMO KEY TO ENTERPRISE: INTEGRATION AND SYNCHRONIZATION

4. Ammunition Enterprise Definition • The Ammunition Enterprise is the integration of people, infra-structure and processes required for ammunition life cycle management to support the warfighter.

5. Enterprise Management Philosophy • Promote Best Value Acquisitions • Utilize Disciplined Processes • Deploy Six Sigma and Lean Design/Production • Promote Continuous Process Improvement and Technology Insertion • Promote Commonality and Interoperability • Promote Spiral or Evolutionary System Development • Ensure customers voice in the process Put Eyeballs On – “Trust, but Verify”

6. Executive Black Belt Program • Initiated VSE facilitated monthly sessions at PEO Ammo with Sr. PEO, JMC, ARDEC Leaders on Jun 03 • Learning Lean Six Sigma tools through lectures and three project teams working on: • Procurement of ammunition • Supplier assessment process • Engineering support process • Mapped ammo enterprise and prioritized processes improvement opportunities

7. Expected Payback • Acquisition management consistency • Fact-based decision • Better prioritization and application of resources • All aspects of the enterprise taken into consideration during process • Complete, consistent and comprehensive acquisition strategies • Streamlined processes • Baseline for our decisions • Better understanding and management of risks • Manage Ammunition as a major acquisition program across the enterprise and not a commodity • Reliable and effective products for the war fighter

8. Enterprise Excellence Effectiveness Quality Management System Voice of the Customer Six-Sigma Project Selection Six-Sigma Process Control Six-Sigma Process Improvement s Efficiency Process Optimization Process Metrics Lean Workload Balancing Lean Metrics Lean Process Deployment Model A disciplined, structured approach for process and product optimization that is focused on the effectiveness' and efficiency bottom line of the organization.

9. Funding Ammunition Enterprise Map No DP Develop Ammunition 2 Acquisition Of Ammunition Yes 3 1 Technology Development s Requirements Generation Process - AAO Requirements Document Funded Program • Program Management/Planning/Control • Contracting • System Engineering • Test and Evaluation • PPBES • Milestone Review Process • Technical Definition • Milestone C • Industrial Base Strategy Funding Contract • S and T • Systems Engineering • Modeling and Simulation • Technology Transfer • Configuration Management • Acquisition Strategy / Planning • Contracting • Program Management/Planning/Control • Review/Certification if TDP if Applicable • PPBES • Pre-production Engineering • Price & Availability • IM Strategy (legacy systems) • New Technologies • Developing Technologies Stockpile Management 5 4 Production Of Ammunition 6/7 Serviceable Obsolete Unserviceable Funded Program Technical definition Ammunition/Components Surveillance Requirement Contingency/Out-loading Requirements • Program Management/Planning/Control • Surveillance Program / QDR Suspensions • Inventory Control/Accountability • Receipt and Issue • Distribution and Requisitioning • Out loading • Retrograde • Transportation • Maintenance of Storage Facilities • Safety/Security • Pre-positioning • Malfunction Investigation • PPBES • Production/Systems Engineering (if Applicable) • Design and Process Improvement • Production Testing • Production Monitoring • Configuration Management • Acceptance • Program Management/Planning/Control • Manufacturing • Quality Assurance • First Destination Shipping • Contract Modification • Safety and Environmental

10. Ammunition Enterprise Map Expended ? 8 Demilitarization Of Ammunition No • Program Management/Planning/Control • Commercial Sale • Develop Demil Technologies and Procedures • R3 • Contracting • Disposal • Recode to Stock 4/5 Maintenance Required No 5 E • Unserviceable • Recap • Modernization Sales 7 Yes • FMS • Presidential Drawdown • Direct Sales • GFM Maintenance of Stockpile 6 5 Expended ? Organic Issue • Program Management/Planning/Control • Maintenance Planning • Parts Procurement • Contracting • Acceptance • Safety security environmental • Execute Program • Management Control • Requisition • Training • Combat • Testing No 5

11. Enabling Initiatives • PEO Ammo/JMC MOU • Operating in a Joint Services environment • Industrial Base Strategic Planning • Demilitarization Strategic Planning • Munitions Readiness Reporting • Collaborative Systems Environment

12. Summary – The Ammunition Enterprise is … • An integrated organization that sees the “big picture” and hears the “voice of the customer” • Making fact based decisions • Continuously improving effectiveness and efficiency • Championing innovation at all levels Supporting the Joint warfighter in every way possible

13. Discussion

14. Ammunition Enterprise • Mission: • Single Manager for Conventional Ammunition • Life Cycle Acquisition Management of Ammunition • Key Objectives: • Unify and Integrate Ammunition Management Under One Single Chain of Command – Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management • Develop a Unified Munitions Acquisition Strategy • Identify and Optimize Key Business Processes • Develop an Overarching Industrial Base Strategy (Organic and Commercial) • Provide Integrated Supply Chain Management of the Ammunition Production Base

15. Enterprise Excellence • Create an agile organization capable of quickly addressing problems, changing budgets, changing requirements, changing technology, changing industrial base etc. • Culture based on fact-based decision making • Maximize value though quality management-voice of customer-effectiveness-efficiency Value is the timely delivery of effective quality ammunition that is safe and provides our warfighters an overmatch capability-readiness