Manufacturing Technical Assistance Production Program (MTAPP) Pilot TACOM Industrial Base Operations (AMSTA-LC-IO)

1. Manufacturing Technical Assistance Production Program (MTAPP) Pilot TACOM Industrial Base Operations (AMSTA-LC-IO) As of 16 July 2009

2. Background • Adapted from Air Force MTAPP Program Model • Army’s Objective: Strong Industrial Base across Small Businesses • Pilot Program scheduled to launch in July 2009, 1-year effort • Fully-funded for FY09, up to 29 suppliers can be assisted within next 12 months • Pilot’s Focus: • Current TACOM small business contractors • Manufactured parts and assembled components (kits) • Consideration of other-Army contractors and services • Supplier Identification and Selection in collaboration with Army Contracting Commmand (ACC) and Office of Small Business Programs (OSBP)

3. MTAPP History Air Force MTAPP initially focused on women-owned businesses. Its focus grew to encompass all sectors of small businesses. TACOM Research Study TACOM MTAPP Pilot Development TACOM MTAPP Pilot Implementation 1997 2006 2007 2008 2009 90+ AF MTAPP Companies Air Force MTAPP Initiated TACOM Supplier Nomination for AF MTAPP Air Force & Department of Commerce Integration TACOM Supplier Nomination For AF MTAPP

4. TACOM MTAPP Vision & Mission Vision Become a core competency within the US Army Industrial Base solution portfolio to enhance the production performance of small businesses in support of Army, Department of Defense (DoD) and Prime Contractor requirements. Mission Provide expert technical assistance to resolve supply chain constraints, enhance production capabilities, improve quality assurance, and incorporate the Lean Six Sigma core principles within small business suppliers to ensure readiness and sustainment support for critical defense systems.

5. Management & Process Overview STAKEHOLDERS TACOMLCMC PEO/PM RDECOM INDUSTRY • Contracting Center • ILSC • Depots & Arsenals Soldier GCS CS&CSS TARDEC ARDEC NSRDEC TACOM MTAPP Program Management Contract Constraint Identification & Supplier Selection Comprehensive Assessment & Contract Corrective Action Plan Corrective Action Implementation Technical Assistance Transfer of Continuous Process Improvement Ownership 1 2 3 4 • Develop performance sustainment requirements • Full transition to continuous process improvement phase • Identify long-term operational improvement requirements • TACOM LCMC supplier / contract nomination • Preliminary Supplier & Contract Analysis • Determination of Likely Impact • Company acceptance and notification • TA Examples: • Sourcing Support • Lean Implementation • MRP Improvements • Technical skills support • Exit Assessment • SCOR: Plan, Source, Make Deliver & Return process and capability assessments • Process mapping & root cause analysis • Contract impact review: MRP, Quality, Production scheduling PROCESS

6. Requested Assistance Examples: • Prototype Support • Testing & Evaluation • Tech Data Creation • Reverse Engineering • Secondary Sources • Financial Management • Quality Escapes • Unmet Deliveries • Surge Activity • Project Management • Technical Drivers Step 1: Contract Constraint Identification & Supplier Selection } • Identification • Evaluation • Selection Industrial Base Operations Army Contracting Command Office of Small Business Programs Contract Constraint Identification & Supplier Selection 1 • TACOM LCMC supplier / contract nomination • Support 15-20 supplier engagements per year • Goal: 60 supplier engagements over 3-year effort • Preliminary Supplier & Contract Analysis • Develop supplier profile and pre-qualify supplier for program • Identify affected weapons systems and contracts • Determination of Likely Impact • Determine criticality and risk of source • Evaluate impact to associated systems • Company acceptance and notification • Engage supplier and stakeholder

7. Supplier Selection Criteria • Most Value from: • Longer Term Contracts • Critical Components • Hard-to-Obtain Parts • High Dollar Valued Components • Considerations: • Dun and Bradstreet Profile • Economic Impact to Supply Chain • Past Performance with other agencies • Additional Factors: • Type of Buy • Legacy vs. Newer/Future Systems • Sourcing Constraints

8. Step 2: Comprehensive Assessment & Contract Corrective Action Plan • TACOM MTAPP On-Site Supplier Assessment • SCOR Model - Root Cause Determination • Report of findings (RoF) & Corrective Action Plan Comprehensive Assessment & Contract Corrective Action Plan 2 • SCOR®: Plan, Source, Make, Deliver & Return Assessment • Process Mapping & Root Cause Analysis • Interactive, event-driven activities to identify problematic areas and • contributing factors • Contract Impact review: i.e. MRP, Quality, Production Scheduling • Develop solutions to meeting contract requirements 8

9. Assessment Scorecard PLAN EXAMPLE SOURCE MAKE DELIVER RETURN = No material impact = Direct & Immediate impact = Indirect impact or linger term

10. Step 3: Corrective Action Implementation Technical Assistance • Collaborative corrective action plan implemented • Measurable improvement of contract adherence • Transition of corrective action plan to CPI Corrective Action Implementation Technical Assistance 3 • TA Examples: • On-site technical assistance provided, based on Corrective • Action Plan. Some solutions may include Kaizen Events, Lean • Implementation, MRP Training or Improvements • Exit Assessment • Perform exit assessment to measure actual vs. planned • improvement • Capture elements for integration into Continuous Process • Improvement plan to sustain technical assistance gains 10

11. Program Metrics EXAMPLE MTAPP Exit Assessment - Metrics Example

12. Step 4: Transfer of Continuous Process Improvement Ownership • Shift to Continuous Process Improvement focus • Identify longer term improvement requirements • Integrate requirements into single operational plan Transfer of Continuous Process Improvement Ownership 4 • Develop performance sustainment requirements • Evaluate overall performance improvement • Develop methods for maintaining performance • Full transition to Continuous Process Improvement Phase • Deliver self-sustaining plan for supplier to • implement beyond MTAPP • Identify long-term operational improvement requirements • Discuss trends and potential future • requirements • Identify long-term strategies and/or high-dollar • capital investments for competitiveness 12

13. Exit Assessment Scorecard PLAN CPI EXAMPLE CPI CPI CPI = No material impact = Direct & Immediate impact = Indirect impact or linger term

14. Information & Document Flow Contract Constraint Identification & Supplier Selection Communication to Stakeholders 1 MTAPP No E-mail Notification Supplier No MTAPP Yes Supplier/ Contract Info Intake IBO Preliminary Assessment Qualified Supplier Contact Stakeholder Nominations Supplier Decision Selection Review Letter requesting participation Supplier Yes Request for Action to The Asaba Group IBO Review Comprehensive Assessment & Contract Corrective Action Plan Corrective Action Implementation Technical Assistance Transition to Supplier Owned Continuous Process Improvement 2 3 4 Supplier Owned Continuous Improvement Plan Report of Findings & Corrective Action Plan Exit Assessment Report Technical Assistance Proposal

15. MTAPP Benefits & Measures of Success Expected Benefits: • Department of Army / • HQ Army Materiel Command: • Domestic sources of supply for critical components • Proven network of small businesses for defense program support • Effective leverage of assistance in small business development • Stakeholders: • Improved Technical Data • Reduction of shortages • Strengthened supply chain • Increased readiness and sustainment support • Suppliers: • Reduction of non-value added activities • Improved operational performance (quality, productivity, logistics) • Enhanced ability to meet cost, quality, schedule requirements • Significantly reduced adverse impact of small business supplier performance on readiness and sustainment efforts • Small business suppliers with enhanced ability to self-sustain optimal production performance • Network of small business suppliers with proven performance and capability as preferred suppliers for current and future weapons systems programs. • Favorable Return on Investment, measurable impact on TACOM programs and a solid program management model for program expansion across the Army Materiel Command (AMC) enterprise. Measures of Success: A responsive, reliable small business industrial base meeting the needs of the warfighter!