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Manufacturing Readiness Assessments

Manufacturing Readiness Assessments. Why is Manufacturing Readiness I mportant? The availability, quality, and performance of the systems, equipment and supplies we need to maintain national security are directly tied to the manufacturing capability. National security also may require:

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Manufacturing Readiness Assessments

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  1. Manufacturing Readiness Assessments Version 1.0, 8-1-2012

  2. Why is Manufacturing Readiness Important? • The availability, quality, and performance of the systems, equipment and supplies we need to maintain national security are directly tied to the manufacturing capability. • National security also may require: • Manufacturing surge capability • The ability to develop, manufacture, and deploy/support a new system solution in a timely and cost effective manner • Even Items produced for years can suddenly have manufacturing and support problems.  DoD even set up a “little schoolhouse” called the Industrial College of the Armed Forces (ICAF) to focus on these types of issues Version 1.0, 8-1-2012

  3. Title 10, Subtitle A, Part IV, “The Secretary of Defense shall establish a Manufacturing Technology Program to further the national security objectives of section 2501(a) of this title through the development and application of advanced manufacturing technologies and processes that will reduce the acquisition and supportability costs of defense weapon systems and reduce manufacturing and repair cycle times across the life cycles of such systems." Chapter 148 Version 1.0, 8-1-2012

  4. DoDI 5000.02 • MFG maturity emphasized during MS A and B reviews. • Post-CDR Assessment continues the EMD Phase into System Capability and Manufacturing Process Demonstration. • Production & Deployment Phase Entrance Criteria Include: • No significant manufacturing risks; • Manufacturing processes under control (if MS C is FRP) • LRIP “is intended to result in completion of manufacturing developmentin order to ensure adequate and efficient manufacturing capability.” • FRP Criteria includes: “demonstrated control of the manufacturing process and acceptable reliability.” Version 1.0, 8-1-2012

  5. Highlights of GAO-10-439 BEST PRACTICES: DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed • Billions of dollars in cost growth occur as programs transition from development to production, and unit-cost increases are common after production begins…. • Essentially, programs …. • Did not identify and resolve manufacturing risks early in development, • Carried risks into production where they emerged as significant problems. Version 1.0, 8-1-2012

  6. Highlights of GAO-10-439 BEST PRACTICES:DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed • DOD’s History of Manufacturing Problem areas include: • Unstable designs and poor process controls • Poor transition to production leading to quality problems • Quality problems lead to: • Cost overruns • Schedule delays, and • Reduced weapon-system availability • The lack of production maturity contributing to cost growth, schedule delays, and performance problems. Version 1.0, 8-1-2012

  7. Contributing factors include: • Inattention to MFG during planning and design • Over 50% of current programs in production have encountered some form of delay after the production decision, when manufacturing processes should be in control. • Poor supplier management • Supplier quality was inconsistent, resulting in unnecessary rework and uncovering problems late in production. • A lack of a knowledgeable manufacturing workforce • In many cases, the programs lacked manufacturing expertise early in development, which hindered the program’s ability to later manage manufacturing risks. Highlights of GAO-10-439, a report to congressional requesters , BEST PRACTICES: DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed Version 1.0, 8-1-2012

  8. Manufacturing Readiness Levels MRL definitions create a measurement scale for assessing manufacturing maturity and risk. Using the MRL definitions, an assessment of manufacturing readiness is a structured evaluation of a technology, component, manufacturing process, weapon system or subsystem. It is performed to: • Define current level of manufacturing maturity • Identify maturity shortfalls and associated costs and risks • Provide the basis for manufacturing maturation and risk management Version 1.0, 8-1-2012

  9. MRLs…. How do we “Assess” them? A MFG Cost Drivers Identified MSA Phase MRLs 1-3 MRL 4 MFG feasibility assessed. Concepts defined & developed Capability to produce technology in a lab environment. MFG risks identified MDD B Detailed Cost Analysis Complete Cost Model Constructed TD Phase MRL 5 MRL 6 Capability to produce system / subsystem prototypes C Capability to produce prototype components Cost Model Updated to system level Unit Cost reduction efforts underway Engineering Cost Model Validated EMD Phase MRL 7 MRL 8 Capability to produce systems, subsystems, or components in a production representative environment IOC Post CDRA Pilot line capability demo & ready for LRIP MRL 10 MRL 9 Production & Deployment Phase LRIP Cost Goals Met Learning Curve Validated FRP Unit Cost Goals Met Full Rate Production demonstrated. Lean production practices in place Low Rate Production demonstrated. Capability In place for FRP FRPDR Version 1.0, 8-1-2012

  10. MRLS and Technical Reviews……disconnects • MRLs address many of the manufacturing issues not covered in technical reviews….particularly those reviews conducted in the early phases……..BUT….. • Standard technical review checklists often do not address manufacturing in the areas of: • program management • systems engineering, • requirements management • Core manufacturing disciplines often are not adequately addressed in the specific areas of: • management metrics • manufacturing planning • risk management • program schedule. • requirements management • system verification Highlights of GAO-10-439, a report to congressional requesters : BEST PRACTICES:DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed Version 1.0, 8-1-2012

  11. MRLS and Technical Reviews GAO analysis showed….. • Current PDR checklists - only 27 of 759 total questions deal with core manufacturing-related questions • The MRL 6 assessment checklist for this juncture has 169 core manufacturing questions. • CDR checklists - only 22 of 824 total questions deal with core manufacturing questions • The MRL 7 assessment checklist for this juncture has • 162 core questions. • PRR checklists - only 194 of 613 total questions that deal with core manufacturing questions. Highlights of GAO-10-439, a report to congressional requesters : BEST PRACTICES:DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed Version 1.0, 8-1-2012

  12. Knowledge-Based Decision Making is Key to Successful Program Outcomes Attainment of Product / MFG Knowledge Production Design & Technology Maturity Knowledge Gaps = RISK Gap Desired Knowledge Design & Technology Maturity Gap One might also say that “attained” is too often Simply “assumed.” Attained Knowledge Technology Maturity Gap Attained Knowledge Knowledge Point 1 Knowledge Point 2 Knowledge Point 3 The Gap Between the “Desired” MFG Maturity and Actual Maturity = RISK Historically in DoD, this Gap becomes a MFG “Issue” Version 1.0, 8-1-2012

  13. Manufacturing Readiness …. • Is tied to the Design and to the “Producibility” of the design…… • The more complex the design, the harder it will be to fabricate, assemble, test and maintain. • Producibility ……. a design accomplishment • Defined as “The measure of the relative ease of manufacturing.” • That is, “is it easy to make?” • Results from a coordinated effort by design team to create a design that optimizes the ease and economy of fabrication, assembly, inspection, test, and acceptance without sacrificing function, performance or quality. • A basic principle = Focus on the simplicity of design. • Simple designs are more “elegant” and take more effort to achieve than complex designs and include dictates such as: • Use economical materials. • Standardize materials and components. • Minimize parts count. • Eliminate or minimize special • tooling and testing. Version 1.0, 8-1-2012

  14. Producibility / Manufacturing Considerations Version 1.0, 8-1-2012

  15. F/A-18 Bailout Bottle Holder. This immature, complex design was simplified using Design for Manufacturing and Assembly (DFMA). DFMA asks three questions for each part: • During operation, does this part move relative to the part it is connected to ? • Does this part need to be made from a different material than the part to which it is connected? • Does this part need to be removed? A “NO” answer to each means that the part is a candidate for re-design. • The Simpler Design • Has fewer parts and fewer connectors.  • Is easier to fabricate and assemble • Improves reliability • Improves maintainability. Version 1.0, 8-1-2012

  16. Assessing Manufacturing Readiness … Threads & Sub-threads to be assessed Successful manufacturing has many dimensions. MRL threads have been defined to organize these dimensions into nine manufacturing risk areas. MRL Assessments…. 1. Ask a series of questions derived from the MRL definitions and threads to guide the assessment process and determine the MRL (NOTE: “Tailorable” questions can be found at http://www.dodmrl.com) 2. Should include the actions necessary to bring readiness up to the target level in time to transition a technology or support a milestone decision with manageable risk. Manufacturing Readiness Level (MRL) Deskbook, Version 2.01, July, 2011 Version 1.0, 8-1-2012

  17. Assessing Manufacturing Readiness … Threads & Sub-threads to be assessed • Technology and the Industrial Base: • Is the industrial base mature? • Is there enough capacity? • Could industry surge if necessary? • Is there any room for competition? • Is the source foreign or domestic? • 2. Design: • Is the design mature (percent complete)? • Is the design producible? • What design tools are being used? • What is the use and maturity of the IPPD Team? • How is configuration managed? Manufacturing Readiness Level (MRL) Deskbook, Version 2.01, July, 2011 Version 1.0, 8-1-2012

  18. MRL Threads • 3. Materials: • What is the availability of materials? • Are there any environmental concerns? • What are the lead times? • Have long-lead items been identified? • What is the Make/Buy Plan? • What are the material costs? • 4. Cost and Funding: • Have all costs been identified? • Is the budget established? • Is the program fully funded? • Does funding include maturing the manufacturing processes? • Have you established Design-to-Cost goals? • 5. Process Control and Capability: • Have Key Product and Process Characteristics been • identified? • Is there an established Variability Reduction Program? Manufacturing Readiness Level (MRL) Deskbook, Version 2.01, July, 2011 Version 1.0, 8-1-2012

  19. MRL Threads • 6. Quality Management: • Is there an established Quality Program? • Is DCMA engaged? • Does the contract include incentives for high quality? • Is the quality program based on ISO or an Advanced Quality System? • 7. Manufacturing Personnel: • Are the manufacturing personnel adequately trained? • Are Tooling and Industrial Engineers involved early in the program? • Are process owners and operators involved upfront and early? • Are your manufacturing personnel involved in all reviews and audits? Manufacturing Readiness Level (MRL) Deskbook, Version 2.01, July, 2011 Version 1.0, 8-1-2012

  20. MRL Threads • 8. Facilities: • Where is the facility (foreign or domestic)? • Will the product be produced on a new or existing line? • Is that line dedicated or shared? • Is the facility mostly commercial or defense oriented? • What is the status of Labor Unions and agreements? • Are there any local laws and considerations? • 9. Manufacturing Management: • What is the MFG Strategy? • How mature is the MFG Plan? • What is the level of involvement of manufacturing in the design? • How will the Supply Chain be managed? • Is SCM integrated into your Manufacturing Plans? • Is there a scheduling tool for monitoring production status? Manufacturing Readiness Level (MRL) Deskbook, Version 2.01, July, 2011 Version 1.0, 8-1-2012

  21. On-site Manufacturing Readiness Evaluations • The type and depth of the assessment is determined by the risk level of the element. On-site evaluations are typically done at facilities where one or more of the following apply: • The highest percentage of manufacturing cost is incurred • Final assembly and test is conducted • The most sensitive manufacturing tasks are accomplished • The materials, components or subsystems that are the least technologically mature are produced or availability issues exist • Known significant problems or risks (low yields, high costs, immature manufacturing processes, etc.) exist • The PMO normally leads assessments at the prime. • The prime will lead the assessments for its suppliers. Version 1.0, 8-1-2012

  22. On-site Manufacturing Readiness Evaluations • The PMO is responsible for forming the team • Team members should be experienced and knowledgeable in the areas of: • manufacturing engineering, • industrial base, • quality, • supply chain, • The goals are to identify: • potential manufacturing constraints, • risks, and • the capability of the technology and • industrial base to execute the manufacturing efforts. • design, • systems engineering, and • production Version 1.0, 8-1-2012

  23. MRL Assessment Report • Nota simple “go/no-go” gauge. • Assigning a single MRL to an entire technology or weapon system may have little value. • it is likelythe MRL will vary widely from component to component and perhaps even manufacturing process by manufacturing process for a specific component. The report should contain a bottom-up assessment of the relative manufacturing readiness at the system, subsystem and component level. Version 1.0, 8-1-2012

  24. MRL Assessments Report • Forms the basis for managing MFG risk. • Highlights MFG issues or risks early in development • When they are easier to resolve; • Before significant investments are made, and • When solutions can be addressed more affordably • Compares “actual” MRLs to the “target” MRLs • The difference between the two: • Identifies the risks and • Forms the basis for assisting managers to develop a Manufacturing Maturation Plan (MMP) • Provides information for MDA determination of whether the level of MFG risk supports Milestone approval Version 1.0, 8-1-2012

  25. The Manufacturing Maturation Plan (MMP) & Risk Management • The MMP… • Provides a mitigation plan for each risk area throughout the duration of the program/project, including part/component supplier and sub-tier supplier risk management shortfalls • Every manufacturing readiness assessment should have an associated MMP for those areas where the MRL has not achieved its target level Version 1.0, 8-1-2012

  26. MRL Maturity Assessment Tools • Provide an MRL score for the product “as is,” which • is then compared to the MRL score desired to exit • the phase. • The important information obtained is not necessarily what MRL level the item is at currently, but rather the robustness of the gap-closure plan to get to the desired level for the next gate. • The application of the MRL tool helps • identify what these key gaps are and • what steps are required to close them. Version 1.0, 8-1-2012

  27. Maturity Assessment Tool – Example: AF MRAT Version 1.0, 8-1-2012

  28. Maturity Assessment Tool – Example: AF MRAT Version 1.0, 8-1-2012

  29. Leading Commercial Firms . . . . • Emphasize MFG criteria early in development and use stringent MFG readiness criteria similar to DOD’s MRLs • Require that MFG processes be in control prior to low-rate production. DOD’s MRL criteria do not require control of the manufacturing processas early. • Emphasize relationships with critical suppliers. • Recognize the value of having a knowledgeable, well-trained, and skilled MFG engineering workforce involved in these multidisciplinary teams from the beginning and throughout the process. Highlights of GAO-10-439, a report to congressional requesters: BEST PRACTICES: DOD Can Achieve Better Outcomes by Standardizing the Way Manufacturing Risks Are Managed Version 1.0, 8-1-2012

  30. Manufacturing Risk Management Best Practices (5 Areas) • 1. Recognize the importance of MFG and mitigating MFG risk to the success of a program/project • Make MRLs and MFG risk management part of source selection • 2. Manage MFG risk on par with all risk areas • Incorporate the management of MFG readiness, risk, and cost into the basic fabric of managing the program/project • 3. Monitor the status and progress of MFG risk mitigations • Know the MRL of every technology being considered for application in the program/project • 4. Use the MFG expertise of others to help mitigate MFG risk • Includes MFG expertise available on product center staffs and within the service/agency MFG technology programs to supplement staff • 5. Develop workforce skills in identifying and mitigating MFG risk • Review the manufacturing readiness information and tools available on http://www.dodmrl.com/ • Support manufacturing training for program/project staff Version 1.0, 8-1-2012

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