Product Data Management Initiative Overview Joint Aviation Conference

1. Product Data Management Initiative OverviewJoint Aviation Conference

2. Agenda • PDMI Program Overview • Product Lifecycle Management Capabilities • PDMI Solution Discussion • Improvement Opportunities

3. Program Overview • Business Systems Modernization - BSM - End-to-end ERP • Order Fulfillment, Planning, Procurement, Financial • Integrated Data Environment – IDE • Esynchronizes DLA’s Internal Processes • Provides DOD-wide Log Data Exchange & Interoperability • Customer Relationship Management – CRM - Processes, Tools and People to Move from Transaction-based to Partner Relationships • Product Data Management Initiative (PDMI) • Will Deliver a DLA-wide Product Data/Product Lifecycle • Management and Collaboration System • Distribution Planning Management System - DPMS - Robust Material Positioning & Warehouse Optimization - Global Decision Making & Management for 25 Depots • BSM Energy - Commercial Software, Deploying Now • Reutilization & Modernization Program • Enhancing/Modernizing the DRMS • Common Food Management System - CFMS - Combines retail functionality with wholesale functionality of Subsistence Total Order and Receipt Electronic System

4. Program Overview • DLA's overall transformation strategy requires all DLA business operations to upgrade their IT capabilities, including Technical and Quality functions • BSM Release 2.0 functional blueprinting identified the need for technical document management and workflow management • As a result, DLA has begun an Agency-wide Product Data Management Initiative (PDMI) whose objectives are to: • Increase the accuracy and accessibility of product data needed to make informed engineering and procurement actions • Provide a single enterprise application that supports one location and access of product data for authorized users • Link to the SAP application being developed and implemented where required to support ongoing business processes • PDMI Program Office Established in Oct 2004

5. IDE Program Definition The PDMI is the DLA’s strategy for transforming the Agency’s Technical and Quality business processes and capabilities. The Technical and Quality business process is one of the five core business processes comprising DLA’s BSM strategy. The PDMI will provide part of the Technical and Quality business process solution • PDMI • Bidset preparation • Document maintenance/version • management • Document repository (JEDMICS) • Collaboration with customers • & suppliers • ECP/ECN management Services Data Environment (Army PLM plus) • BSM • Tech review of PRs • Match PR with specs & QAP • Tech/Quality history • Vendor performance management • Product quality complaint mgmt • Bills of Material • Packaging data • FLIS/CRS • National Stock Number items • New item introduction • Item descriptions • Establishment & Maintenance • of NSN relationships • Reference data

6. Consolidate DLA Technical Data From: Multiple JEDMICS Shared drives Personal computers Desk drawers Provide Data Accessibility & Visibility to: Product specialists TQ community Customers Suppliers Create Bid Sets Replace DBI, ABI, CAPERS Link to Existing Databases: ASSIST MEDALS Allow Collaboration on: Engineering support Specification preparation Establish Capability for Future Links to: Service data repositories OEM data repositories PDMI Capabilities Take advantage of current product lifecycle management capabilities

7. Vision/Strategy PDMI Objective Automated Capabilities for the Management and Use of Product Data Supporting DLA Business Processes Increment 1 Integration with BSM Increment 2 • Technical data repository • Bidset preparation • Interface to ASSIST & MEDALS • Replace ESA and JEDMICS Automation of Tech Businesses Increment 3 • Technical programs • Specification authoring • GEM program Integration with Design Activities • • Collaboration with Design Activities • Links to Services Engineering Data • Links to Vendor Drawings

8. 01/09 CDR 09/08 Go Live 08/08 DRR 04/10 TRR 10/25 SRR Test Pass 2 Mock 4 Mock 3 Test Pass 1 Mock 2 Mock 1 Test Pass 3 12/08 PDR 05/08 IPR 02/08 IPR 06/08 IPR 03/08 IPR OTRR Monthly Status Reports Milestone Progress Checkpoint Increment I High Level Schedule BPR Design Develop Test D e p l o y Legacy Support System Stabilization / OT&E Migration Design Mock Migrations Cut-over Training Design, Development, Test, TTT Organizational Design Communications

9. PDMI Application View

10. Agenda • PDMI Program Overview • Product Lifecycle Management Capabilities • PDMI Solution Discussion • Improvement Opportunities

11. Start of production End of production First idea Obsolescence Product Design and Launch Production and Distribution Aftermarket Service / Product Withdrawal Customer Relationship Management Supply Chain Management • Profitability target • Volume • Price Product Lifecycle Management PLM Scope PLM makes all product and project specific information available throughout the organization and also with customers and partners across enterprise boundaries.

12. BrandOwner Components Supplier ContractEngineer Services Supplier OEM PLM Evolution Two clear trends have emerged in PLM: Inclusion and Collaboration. • Solution for the engineering function • Store and manage engineering drawings and related CAD files. • Additional capabilities such as change orders, configuration management and visualization • Information silos • Sequential information flow • Lack of tracking Convert sequential processes into collaborative networks with all partners involved —component suppliers, contract manufacturers, customers, third party design partners. Enterprise Data Management Cooperation Between Enterprises Collaborative Businesses Client Client Delivery / Service Marketing Engineering Production

13. Process Integration PLM enables a level of process and organization integration which was not previously achievable. Functional Integration Levels Teams Integration Levels

14. Shop Floor Execution ERP Computer Aided Design Customer Support Application CRM Application Integrated Product Environment • CAD • Items • BOMs • Drawings • Shop Floor • BOMs / Routings • Visual Aids / Mfg Instructions • ERP • Items • BOMs • ECs • CRM Application • Customer Needs / Requirements • Order Configurations • Customer Support • As-Maintained Product Data • Repair / Warranty Data Illustrative PLM Application

15. Business Benefits Benefit How Achieved Reduce Time to Market Increase Revenues Reduce Costs Improve Product Quality Increase Customer Satisfaction • Better coordination between development and manufacturing • Sharing accurate content across the organization • Quicker and more accurate decision-making during development • Reduce time to volume through manufacturing/development coordination • Requirements management process integrated with marketing • Improved resource allocation for development projects • Improved change management processes and communication • Better equipment and plant performance through improved maintenance and utilization • Integrated quality management across development, production, and maintenance • Improved service offerings • Responsive product development

16. Agenda • PDMI Program Overview • Product Lifecycle Management Capabilities • PDMI Solution Discussion • Improvement Opportunities

17. SAP Enterprise Portals Employees SAP HR Customers Suppliers SAPSCM SAPFinancials Life-Cycle Data Management Document Management Product Structure Management Recipe Management Integration Change & Configuration Management SAP E-Procurement SAPCRM Industry Solutions Asset Life-Cycle Management Technical Assets Management Preventive and Predictive Maintenance Maintenance Execution Work Clearance Management SAP PLM SAPBI Stakeholders Program & Project Management Project Planning Project Execution Interfaces Program Management Partners Company Life-Cycle Collaboration and Analytics Design Collaboration Collaborative Project Management Quality Collaboration Analytics Enterprise Portal Content SAP Exchange Quality Management Audit Management Quality Improvement Quality Control Basic Data and Tools Product Safety Hazardous Substance Management Dangerous Goods Management Waste Management Industrial Hygiene and Safety Occupational Health Environment, Health & Safety Introduction to SAP PLM The SAP PLM solution supports all the processes related to customer requirements, product specification, product engineering and project management.

18. Lifecycle Data Management provides integrated engineering capabilities for managing requirements, bills of materials, routing and resource data, recipes, CAD models, and related technical documents. Lifecycle Data Management Document Management • Manage specifications, bills of material, routing data, project structures, recipes and related technical documents Product Structure Management Integration • Fully supported out-of-the-box integration to different computer aided design (CAD) systems Change and Configuration Management • Manage the conceptual and early design phase with product designer capability to maintain maximum flexibility for adding and deleting documents, drawings and materials

19. Asset Lifecycle Management assists in equipment planning, operation, maintenance, and replacement process and enables greater control and accuracy Asset Lifecycle Management Technical assets management • Equipment structures, documentation Business partner collaboration • Purchasing of services and parts Preventive maintenance Work clearance management Work order cycle (asset planning, routeplanning, shutdown planning)

20. Program & Project Management provides capabilities to plan, manage, and control product portfolios and the complete product development process Program and Project Management Strategic Program Management Life Cycle Profitability Analysis • Perform Earned-Value and profitability analysis by consolidating earnings and profitability over the entire life cycle Project Management • Plan and manage project schedules and resources

21. Life Cycle Collaboration integrates development partners, customers and suppliers and allows them to communicate information across virtual teams. Lifecycle Collaboration Design Collaboration Collaborative Project Management Quality Collaboration Supplier Collaboration Enterprise Portal Content PLM Analytics

22. Quality Management enables continuous process improvement through collaboration and sustained quality control. Quality Management Quality engineering • Engineering workbench, audit managementvendor evaluation, stability study Quality control • Inspectors workplace, mobile inspectionsstatistical process control (SPC) Quality improvement • QM manual, notifications, Internetservice requests, solution database Quality collaboration

23. Environmental Health and Safety ensures regulatory compliance, helps to maintain a positive public image and safe working environment. Environmental Health and Safety Product safety • Specification management/phrase management Dangerous goods management • Dangerous goods regulation data Industrial hygiene and safety • Safety site inspections, risk assessment Waste management • Disposal processing Occupational health • Health surveillance protocols, medical service

24. User Experience

25. Agenda • PDMI Program Overview • Product Lifecycle Management Capabilities • PDMI Solution Discussion • Improvement Opportunities

26. PDMI Process Model During blueprinting we defined 4 overall process areas and associated processes that define PDMI. 7 of those processes are in scope for Increment 1 Item Definition Item Introduction End of Life Analysis & Prioritize Doc Develop Doc Control Data Dissemination EOL Analysis Collab Disposition Item Screening Create Item & Store Docs Item Master Data Mgmt Component Management (out of scope for Increment I)

27. During blueprinting, we identified process improvements throughout the 7 in-scope processes. Major changes fall into three categories: Item Introduction – Create Items and Store Documents Document Management Document Control Document Development Dissemination Disposition Solicitation Support Analysis and Prioritization Item Master Data Management Dissemination Process Improvements

28. DLIS catalogers have access to technical data to fully describe new items All LR technical data passes through DLIS, complementing the BSM R2.2 LR solution DLIS catalogers scan and store documentation during cataloging DLIS catalogers and DLA product specialists can collaborate using SAP cFolders Technical data established in SAP DMS at time of item creation (LR or SSR) Item Definition Item Introduction End of Life Analysis & Prioritize Doc Develop Doc Control Data Dissemination EOL Analysis Collab Disposition Item Screening Create Item & Store Docs Item Charact Mgmt Component Management (out of scope for Increment I) Process ImprovementsItem Introduction

29. Consolidated processes for managing all document types (drawings, specifications, etc.) Proactively acquire correct versions and revisions of technical data Up-front creation of document structures to streamline dissemination Reuse of document structures across multiple NSNs Item Definition Item Introduction End of Life Analysis & Prioritize Doc Develop Doc Control Data Dissemination EOL Analysis Collab Disposition Item Screening Create Item & Store Docs Item Charact Mgmt Component Management (out of scope for Increment I) Process ImprovementsDocument Management

30. Technical reviews based on planned buys, reducing TQ contribution to ALT Single, enterprise-wide solution for document distribution Integration of engineering support requests into primary product specialist application (SAP) Multiple NSNs on single engineering support request, when applicable Item Definition Item Introduction End of Life Analysis & Prioritize Doc Develop Doc Control Data Dissemination EOL Analysis Collab Disposition Item Screening Create Item & Store Docs Item Charact Mgmt Component Management (out of scope for Increment I) Process ImprovementsSolicitation Support

31. BrandOwner Components Supplier ContractEngineer Services Supplier OEM Beyond Increment I Increment I Focus Post-Increment I Focus • Solution for the engineering function • Store and manage engineering drawings and related CAD files. • Additional capabilities such as change orders, configuration management and visualization • Information silos • Sequential information flow • Lack of tracking Convert sequential processes into collaborative networks with all partners involved — component suppliers, contract manufacturers, customers, third party design partners. Enterprise Data Management Cooperation Between Enterprises Collaborative Businesses Delivery / Service Marketing Engineering Production

32. Collaboration Leading Practices • Work with supply chain partners to proactively identify end-of-life parts and execute EOL plan • Work with suppliers on quality issues • Share supplier technical performance statistics with the purchasing organization and the supplier • Deploy cross-functional teams to work with suppliers who are having quality issues • Maintain a single master • Avoid translations, copies, and redundant storage of data • Use views and access privileges instead of different versions • Applies to BOMs, engineering models, documentation, and material records • Deploy collaborative capabilities – people will use them • Integrations to third part viewers allow non-engineers to view CAD files • Workflows, redlines, and projects create non-real time collaborative capability • Virtual meetings with real-time internet redlines

33. Collaboration Leading Practices • Eliminate latency in change order execution • Get a “heads-up” to pending changes before they are released • If possible, become a member of the design authority’s change control board • Automate the extraction, translation, and import of change data • Understand and communicate the cost impact of design decisions • Inventory obsolescence, increased lead times and component costs should be traced back to the change responsible • Optimize the number of “touches” and manual steps in loading engineering content • Generally, fewer touches is better (results in cleaner data), but... • Validate key data prior to finalizing in the PDM system • Provide feedback • Suggest changes which save money or improve quality • Inform the design authority of the operational impact of their proposed changes

34. Questions