Future of Defense Supply Chain: Innovation Checklist & Assistance

1. Mission: To advance economic prosperity, health and quality of life in Indiana and beyond.

2. future state of THEdefense supply chain • Innovation Checklist, Seven Steps to Compete and Win! • Download paper at: • http://mep.purdue.edu

3. AeroSpaceDayton Development Coalition 2013

4. Industry drivers • Today we are in the fourth industrial revolution period – digital mfg & IIOTs • Services industry experiencing its “industrial revolution” eg. Uber, Airbnb • US manufacturing 17% of GDP • Global competition: Indiana production to Mexico at $20/hr vs $3/hr • DoD budget cuts and uncertainty • Federal labs and agencies facing cuts • Defense Innovation Initiative – outsource to the supply chain

5. Defense Innovation Initiative • The DoD is: • pushing innovation out to the primes and their supply chains and • compressing delivery cycles from 12 months to 9 or even 6 months • Therefore: • Today’s supply chain, over the next five to ten years, will evolve to be more dynamic, innovative and agile • Will your company be ready?

6. PRIMES TO SUPPLIERS • Driving capabilities and requirements: • Provide price, quality, delivery and now also INNOVATION • Adopt DIGITAL MANUFACTURING – for compressed cycle times and quality • Both go hand-in-hand.

7. Supply chain – current state

8. supply chain – future state

9. Your innovation goals • Where will your company be in five to ten years? • Innovation program • R & D or specialization • Digital manufacturing capabilities • – electronic design model data flows through work processes: • engineering review • estimating and quotations • machine/tooling set-up • quality; GD&T to CNC CMM • – and your supplier inputs returned/shared via the model package

10. Supplier Assistance • What assistance is available to you? • Innovation Seven-Step Checklist - for Ideas and Resources • Universities Offices of Engagement • State Agencies (PTAC, IEDC) • Crane Indiana, and Airforce Research Labs (Dayton) • Purdue MEP – Onsite Assistance • Purdue Federal and State Grants (e.g. Defense Manufacturers Assistance Program, IN-MaC, Technical Assistance Program)

11. Purdue impact • Purdue MEP provides high-value solutions that help • Indiana businesses maximize their success • by increasing profits, reducing costs, and implementing growth and innovation engineering systems. Our organization serves more than 500 companies annually by implementing continuous improvement principles in the areas of productivity, growth and technology. Purdue MEP has helped our clients collectively achieve over $1 billion of economic impact in Indiana since 2005.

12. Lifetime economic impact • Description Totals • Jobs Created and Retained 10,365 • Sales Created and Retained $1.006 Billion • Cost Savings $115 Million • Investment $254 Million • Total Impact $1.375 Billion • *July 1, 2005 to June 30, 2015

13. Annual economic impact • Description Totals • Jobs Created and Retained 453 • Sales Created and Retained $107,100,650 • Cost Savings $9,961,050 • Investment $17,014,405 • Total Impact $134,076,105 • *October 1, 2014 to September 30, 2015

14. Profitability • Increasing companies’ profitability through: • Objective assessments that identify priority-improvement targets in workforce, manufacturing, plant, engineering, and office processes. • Integrated project implementation and management–– your team and ours working toward the same goal. • Customized Purdue training curriculum for associates, engineers, and management.

15. Manufacturing Extension Partnership Providing high-value solutions to help Indiana manufacturers maximize their success by increasing profits, reducing costs, and implementing growth and innovation engineering systems. • Manufacturing Services: • Lean Manufacturing • Leadership & Supervision • Innovation & Product Development • Lean Office • Quality (ISO) & Environmental Improvement • Six Sigma Certification • Training Within Industry (TWI)

16. Manufacturing Extension Partnership “Myers Spring Co. has had fantastic success through our collaboration with Purdue MEP. We've increased sales and profit each of the last 3 years by implementing lean improvements using Kaizen events. Our facilitator comes in monthly and keeps us on track with follow ups, action items, and confirmation of productivity gains! The program has paid back 2x's the cost via ongoing savings, and we will continue to contract through the Purdue MEP program.” — Jim Parsons, Vice President, Myers Spring Co.

17. Defense Manufacturing Assistance program The Defense Manufacturing Assistance Program (DMAP) provides cash grant assistance to identify and fund projects that address critical needs and areas of improvement for communities and companies to help strengthen and diversify defense contractors by leveraging Manufacturing Extension Partnership services and subject matter experts. • Eligible companies: • Small to medium size enterprises – under 1000 employees • 5% reduction in sales, production or employment within past • 24 months (or imminent threat of reduction in the next 24 months) • Defense Contractor or tier 1,2,3,4, etc. supplier to defense industry • Management team dedicated to improving and growing their business

18. Defense Manufacturing Assistance program • Defense Industry Manufacturer’s Innovation Checklist • Seven steps to initiate and plan innovation projects to become a more successful defense supplier • Understand your position in the supply chain • Seek guiding requirements • Collaborate with cluster partners • Implement innovation best practices • Enhance your public profile • Consult your local Indiana Procurement Technical Assistance Center (Indiana PTAC) • Explore research and development contract and grant opportunities

19. Campus Resources – Faculty Projects • Confidential consulting on a full range of business and technical issues, including: • Business Services • Information Technology • Manufacturing • Materials • Product Design and Development • Productivity and Process Optimization • Quality Assurance • Technology Leadership and Innovation

20. Campus Resources – Faculty Projects “Hiring a large engineering company was going to be expensive. And we couldn’t afford to spend that kind of money if it wasn’t going to work. The experts at Purdue helped us analyze the hurdles we would have to clear as a small company before launching into this product.” — Rex Alton, President, Founder and Owner, Midwest F.A.S.T. Structures

21. IN-Mac The Indiana Next Generation Manufacturing Competitiveness Center, IN-MaC, is accepting inquiries for technology adoption partnership projects. Partnership objective: Adoption of technologies that will strengthen competitiveness and add or preserve jobs in Indiana • Technology Adoption focus areas: • Digital engineering for production design, including finite element methods, materials characterization and computational fluid dynamics • Product lifecycle management, including model-based engineering, supply chain integration and the supporting technologies such as 3D modeling • Production systems modeling and design, including factory flow optimization and layouts, data intelligence, line simulations and warehouse systems.

22. IN-Mac “We are beyond pleased with the outcome of our IN-MaC experience. Purdue has drastically expanded the capabilities of our engineering department, and we are now able to provide some of the most sophisticated engineering services of any bellows manufacturer. The technical expertise and quality of the Purdue faculty is among the best in the nation, and I would recommend their services to any Indiana business in need of technical assistance.” — Nate Schaefer, Application Engineer

23. For more information John Blignaut Product and Market Growth Consultant Purdue Manufacturing Extension Partnership 765-494-2131 johnblignaut@purdue.edu