Quality for a Transforming Army

1. Quality for a Transforming Army Presented to: National Aeronautics and Space Administration Quality Leadership Forum Marc D. Saperstein U.S. Army Tank-automotive and Armaments Command – Armament Research, Development & Engineering Center 25 September 2002

2. Army Transformation Reliability Improvement Program (ATRIP) Objective Force Transformation Quality Roadmap Skilled Industrial Base Robust Designs & High-Quality Products RAM-D Systems Reduced Logistics Footprint Shortening the Acquisition Life Cycle Light Response w/ Heavy Lethality at Reduced Life Cycle Cost

3. “Quality” in Design: DoD 5000.2-R References System Analysis & Control Mfg & Production Chapter 5: Program Design • RiskManagement in: • Technologies • Manufacturing Capabilities • Industry Sources Producibility Shall be a Development Priority. • Early Activities • Design, Manufacturing Development & Test • Hardware & Software • Capable Processes • Control of Critical Processes • Performance Feedback • Corrective Action System RAM Quality Support to the Defense Acquisition Management Framework

4. Appraisal & Failure (Reactive) $Production & Maintenance Prevention (Proactive) $R&D Quality Cause & Effect Quality Engineering Quality Assurance Robustness Systems DFA/M Calibration DF Supply Chain Inspection & Test DMSMS Statistical Techniques Production Streamlining Funding Planning • Set & Achieve Realistic UPC Targets • Meet Fielding Targets • Minimize ECPs/ECOs • Assure Smooth, Timely Transition to Production …. Programs On-time & Within Budget!! Leadership Commitment Quality Management

5. AMC Membership GIQLP/JACG Advanced Quality (1996) • Emphasized Prevention vs. Detection & Correction • Design & Manufacturing • Tools & Attributes • Integrated Product/Process Development (IPPD) • ID & Control of Key Characteristics • Design to Process Capability • Design for Assembly/Manufacturing (DFA/M) • Robust Design • Geometric Dimensioning an Tolerancing (GD&T) • Process Variation Reduction (PVR) • Control of Variation in the Measurement System • Root Cause, Closed Loop Corrective Action • Continuous Improvement (Processes and Products) • Deployment to Subcontractors • Enabling Practices • Adequate, Up-front Funding • Contract Award/Incentive Fee “If DoD provides incentives for implementation of the advanced commercial practices, … we believe it can significantly improve quality, reduce costs of its acquisition programs and apply savings to future modernization efforts.”

6. Today’s Acquisition Realities • DoD Excellence • Performance Contracting • Supplier Empowerment • Use of COTS • Systems Contracting • Set-Asides and HUBZones • Monopolies/Oligopolies • Mergers & Acquisitions • Shrinking Market Shares • DMSMS

7. Army Quality Challenges • Risk-based/Business-based Implementation of Commercial Quality Practices • Sensitivity to “Acquisition Excellence” Principles • The Army needs to be an Educated Customer and Proactive Partner • Proficient in Related Competencies • Provide Detailed RFP/Contract Language Sections C (SOW/SOO), L (ITO) & M (Evaluation) • Basic Quality • Advanced Quality/Quality Engineering • Continuous Improvement Partnerships • Funding Profiles & Contract Incentives Consistent w/ Life Cycle Objectives

8. Status of Army Quality • Subset of Systems Engineering/Industrial Operations at HQ • Resources Limited • Increasing Reliance Upon Sub-Commands • De-Centralization in Several Commodity Areas • Strained (but Improving) Intra-Army Quality Communication • Some Quality Professionals Managed by PEOs/PMs • Functional Integrity/Core Competencies in Jeopardy • Acquisition Community is Reorganizing

9. Quality for Army Materiel (Army Acquisition Executive) Quality Engineering & Assurance Program Quality Management NOTE: THIS DEPICTION DOES NOT REFLECT ALL DA ORGANIZATIONS AND IS ONLY AN ESTIMATE OF CERTAIN ORGANIZATIONAL RELATIONSHIPS.

10. AMC Quality Federation (AQF) • What is it? • A seamless, integrated, virtual structure that leverages quality resources from all AMC organizations to support the Transformation of the Army • Why was it formed? • Provide AMC with a strong, cohesive and comprehensive quality voice • Posture the quality function to meet rigorous needs of Army Transformation • Create a business environment to share best practices and maintain core competencies • Leverage scarce quality resources • Similar to NASA Quality Leadership Forum

11. ? ? To focus on the development and execution of best quality practices in support of our customers and industry partners Tank, Automotive & Armament Systems Communications & Electronics Ammunition Simulators & Training Devices Soldier Systems Missiles & Aviation Biological & Chemical Systems AMC Quality Federation

12. INDEPENDENCE Q PROCESS OWNERSHIP CORE COMPETENCIES Product Verification Acquisition Quality Assurance Fielded Systems Quality Assurance Quality/Reliability Engineering Software Quality Engineering Standardization System Safety Starting Point: The Quality “Trident” • Independence • Materiel Release • Safety • Test Readiness • Process Improvement • Performance Management • OSD Tri-Service Assessment • Chair SC7/WG13 – ISO 15939 (Practical Software Measurement) • “Risk Facilitators” • Process Ownership • Quality in Contract Development, Award & Administration • Life Cycle Quality for Materiel Acquisition • Quality Information/Data Exchange • Core Competencies • Training • Performance Standards • Breeding Ground for “Q Think”

13. Q21 AQF Roadmap Solution Set #1: Internal Quality Management (Improve Ourselves) - Core Competencies - Quality SPIs - IDEs Constraint: Transformation R A P relevance agility pace • Solution Set #2: • Quality Supplier Management • (Improve our Suppliers) • - (CP)2 Integration • Gov’t & Commercial Partnerships • Use of Past Performance Info • Promote & Incentivize World-class Practices ISO/AS/QS CMMI SIX SIGMA LEAN

14. Corps Quality Corps ACTEDS Funding • Uses the Acquisition Corps Model • Intense Focus on Life Cycle Quality • AQF Competencies include: • Acquisition Quality Assurance • Reliability/Quality Engineering • Software Quality Assurance • Product Verification • System Safety • Fielded Systems Quality Assurance • Standardization Professional Certifications (Pub Law 107-107)

15. Quality Improvement: It’s Like Building a House • ISO/AS: Quality Management Framework • Architectural Plans & Building Permits • Design for Six Sigma: Manufacturing Variability during Development • Builders Influence on Architectural Design • Six Sigma: System Assuring Requirements • Tools & Skilled Methodologies • Lean: System Assuring Efficiency • Sequence & Coordination Management Commitment Fact-Based Decisions Continuous Improvement Customer Focus Concepts from paper by VSE Corp.

16. CMMi Capability Maturity Model-Integrated • Framework to Aid in Enterprise-wide Process Improvement • Developed by Software Engineering Institute & Sponsored by DoD • Integrates Discipline-specific Models for Systems Engineering, Software Engineering & Acquisition • Software CMM has been used Extensively in the World-wide Commercial Software Sector for a Decade • Benefits Include: • Higher Quality Processes & Products • Greater Customer Satisfaction • CMMI within AMC: • TACOM Software Elements CMMI/SW-CMM Level 3 (Site Specific) • AMCOM Software Center SW-CMM Level 4 • Investigating Status of Other Sub-Commands • Embraced by the Secretary of the Army

17. Continuous Process Improvement 2 Managed CMMI-SE/SW/A Model Level Process Areas Focus Quality Productivity 5 Optimizing Organizational Innovation and Deployment Causal Analysis and Resolution Quantitative Management Organizational Process Performance Quantitative Project Management Quantitative Supplier Management 4 Quantitatively Managed Requirements Development Technical Solution Product Integration Verification Validation Organizational Process Focus Organizational Process Definition Organizational Training Integrated Project Management Risk Management Decision Analysis and Resolution Integrated Supplier Management Process Standardization 3 Defined Requirements Management Project Planning Project Monitoring and Control Supplier Selection and Monitoring Measurement and Analysis Process and Product Quality Assurance Configuration Management Basic Project Management Risk Rework 1 Initial

18. 6s Six Sigma • Started by Motorola & GE in Early 80’s • Structured Approach for Continuous Improvement • Employs Proven Analytical Tools • Focused on Business Bottom Line: Q$SR • Embraced by Industry as a Process Improvement Tool • The Army has begun Six Sigma Implementation • TACOM (Including Depots) Implementing • Other Sub-Commands Gaining Interest • Many Suppliers have Embraced the Methodology – We are Teaming for Success! • Raytheon • General Dynamics • United Defense • Embraced by the Secretary of the Army

19. Typical Six Sigma Benefits • PAX-2A Explosive Production (Army-wide) • $290M Cost Avoidance (Based on Lab Testing – Not POM’d) • $30/Pound vs. $65/Pound • ~100% Yield vs. 30% • Large Scale Ramp-Up by 4QFY02 • XM982 Excalibur/TCM Procurement Administrative Lead Time (PALT) • $12.1M Program Cost Avoidance • Combined & Compressed Army and International Procurements • 11-Month PALT vs. 24-Month PALT • 155MM, Projectile, M898 SADARM • 75% Reliability Growth in 15 months • $12.5M Production Cost Avoidance • $24.4M mm-Wave RADAR Improvements • 155MM, Projectile, M795 • $2.5M Production Cost Avoidance • Reject Rate of 0.5% vs. 5.0%

20. Process Improvement Strategy • Army Focus on Life Cycle Risk Management and Reduced Production, Operations & Support Costs • Army Secretary Embraces Six Sigma • AMC Commander Embraces Lean • Systems have Similar Tool Kits & Methodology • Process Improvement Strategy: • Integrate Six Sigma (Capability Improvement) & Lean (Waste Reduction) into a Single Process Improvement Program … Army Lean/6s • Promote Pro-active Improvements using Design for Six Sigma (DFSS) • Deploy throughout AMC and its Supplier Base • Establish HQ Management

21. Army (CP)2 QSL PPIMS Best Value Commercial ISO QS/AS 6-Sigma CMMI Quality Supplier Management • Customer-Focused • Supplier-Sensitive • Risk-Based • Performance-Based • Objective • Quantitative Q21 DoD/Federal QSM = f(Quality System Management & Past Performance)

22. AMC Contractor Performance Certification Program, (CP)2 • AMC - Supplier Partnership Initiative • 2nd Party Assessment Program • ISO 9000:1994, Supplemented • Promotes World Class Quality Practices, Continuous Improvement & Customer Satisfaction • Pockets of Success • Changing Environment Mandates Evolution • Commercial Registration and Assessments • ISO 9000:2000, QS-9000/TS 16949, AS9100, TL9000, etc. • Army Risk-Based Business Model

23. Supplier Quality in Army Past Performance • Army Past Performance Information Management System (PPIMS) Feeds DoD Past Performance Automated Information System (PPAIS) • PPIMS Overview • Performance Assessment Reports (PARs)/Customer Report Cards • Required Annually & at Close-Out • System ($5M) & Non-System ($1M) Thresholds • Growing Database • Becoming an Important PPI Tool in Source Selection • May become a Useful Partnership Tool

24. Supplier Quality in Army Past Performance (Continued) • PPIMS Rating Elements (Systems Only) • Schedule, Cost Control, Management, Other • Technical (Quality of Product) • Product Performance, Systems Engineering, Software Engineering, Logistics Support/ Sustainment, Other • Product Assurance • Quality Objectives (e.g., producibility, reliability, maintainability, inspectability, testability) • Control of Manufacturing Processes (e.g., material control, shop floor planning & control, status & control, factory floor design, factory performance)

25. Use of Commercial Customer Satisfaction Ratings • Current Army Supplier Management through DCMA RAMP, Partnerships and use of PPI • Customer Satisfaction Ratings often Play a Role in Commercial Buying • J.D. Power provides Customer Ratings for several Sectors (Automotive, Services Consulting, Energy/Communications, Travel, Finance & Home Building) • Army & DCMA to meet with J.D. Power to Identify Opportunities for Partnerships and Resource Leveraging

26. Army Reliability & Mission Assurance • Army Transformation Reliability Improvement Program (ATRIP) to be Formally Initiated by the Army Acquisition Executive and AMC CG • ATRIP to include: • RMS Leadership Team - Clearinghouse for the Army/DoD and Knowledge Base for all RMS Innovations for Army/Industry Applications • Assessment Team – Assesses RMS Capabilities and Competencies of Contractors, Government Agencies, etc., to include Process Assessment of Programs • Deployment Team – Deploys State-of-the-Art Tools to all Programs and Facilitates or Conducts Program Technical Activities • Industry Liaison Team – Works with Industry, Academia and Professional Societies to assure the US Design Culture Changes to an RMS Focus

27. Army-NASA Partnership for Reliability & Mission Assurance • Joint NASA-Army Relationship Initiated after 2002 CQSDI • Mutual Ultra-Reliability Initiatives Discussed • Areas of focus: • Cultural Change Process for Designing-in Very High Reliability • Probabilistic Design using Physics-based Tools • Probabilistic Risk Assessment Methodologies • Combining Deterministic, Statistical and Probabilistic approaches in RMS Design Growth • Single-Shot Reliability Methods and Applications • Accelerated Aging and Predictive Model development • Need to Re-establish Contact with NASA RMS Activities

28. Other Army-NASA Partnerships/Benchmarking • Supplier Risk Management • Including DCMA • Core Competencies for Tomorrow’s Quality Workforce • Procurement Contract Clauses • Criteria for Receiving Inspection • Soldering Requirements • Army Participation w/ NASA EEE Parts Group • Error Prevention • Supplier Quality Partnerships • NASA participation in Army (CP)2

29. Take-a-Ways • Quality Plays an Important Role in the Army’s Transformation • Quality Investments are Needed • Quality must be Promoted … Constantly • Army & Industry Leadership is Critical for Quality Success • Army Partnerships with Gov’t & Industry assures Maximum Quality ROI • NASA • DCMA • MDA?