AME Solution to Legacy Parts Problem


The following is a “Value Story” on the use of Advanced Manufacturing Enterprise (AME) solutions to solve a legacy parts problem for the Army. The Department of Defense (DOD) and the Army, in particular, have a major problem supporting legacy platforms that are still being used by the Army but are out of production and sources for spare and replacement parts from tradition sources are not available. The following is a story of a pilot project for the 50 Caliber Machine Gun that solved a critical parts shortage problem and proved a concept that can be expanded for other legacy platforms both DOD and commercial.

CHALLENGES

While faced with many challenges common to most manufacturers, following are some of the higher priority issues that impact the company’s drive toward developing digital capabilities.


Organizational and Cultural Issues

Overcoming the organizational and cultural issues was significant. The Army, like major Original Equipment Manufacturers (OEMs), has an organizational structure that can be an impediment to solving a problem that requires a new approach.

Quoting Process

Interviews with potential suppliers found that most required 40 to 80 hours of engineering time just to quote on the part. It was quite clear that potential suppliers were not going to respond to and Request for Proposal (RFP) without more information and that information in a digital format.

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MOTIVATION

Ongoing conflicts in Iraq and Afghanistan have caused a shortage of critical replacement parts in the U.S. Army’s legacy weapons systems. Among the causes of the weapons shortage were the limitations of traditional, inefficient supply chains to coordinate multiple suppliers, as well as the lack of advanced technical manufacturing data. Both of these inefficiencies made it difficult, time-consuming and costly to find the right suppliers and manufacture quality parts quickly.

The Army needed a faster, highly efficient manufacturing supply chain that could ensure the precise, rapid production of legacy parts to meet both current and future demand.

Together with DSN Innovations (now SCRA), the Army developed a pilot project, funded by the Office of the Secretary of Defense ManTech program, to address these challenges and ultimately support the Warfighter.

RESULTS


The long-term benefits of the AME pilot project are expected to help the Army significantly reduce costs and the time it takes to produce legacy parts. Currently, the Army’s pilot program has delivered numerous, quantifiable time and cost-saving results, including:

Cost Reduction

29% reduction in cost.

Increased Supplier Response

75% increase in the number of responding suppliers.

Improved Supplier Qualification

44% reduction in time to qualify new suppliers.

Decreased Lead Time

20% reduction in time between purchase order release and first shipment.

Improved First Article Inspection

100% of suppliers successfully completed “First Article Inspection” the first time.

Increased Job Count

New orders to manufacturers that had not previously supplied these parts, which is expected to produce 21 new jobs.

 

These results have yielded a more agile supplier network that improves the ability for the Army to source and produces parts faster at a lower cost. Quality also improved, as evidenced by the rate of first article acceptance.

More importantly, the Army was able to reduce the number of back ordered parts needed to support the Warfighter.

SOLUTIONS

DSN Innovations helped the Army’s Research, Development and Engineering Center (ARDEC) leverage the principles of “Advanced Manufacturing Enterprise” to deliver an agile, robust supplier network that accelerated production and reduced costs. There are three major components to this solution.


Advanced Technical Data Packages (TDPs)

The first step in helping ARDEC create and manage dynamic supplier networks was to supplement its existing product design information with information about the product manufacturing process. DSN Innovations and ARDEC created an advanced technical data package (A-TDP) that contained all documents and data needed to manufacture parts, from design to manufacturing specifications in a digital format. Traditional technical data packages only contain information about what to make, not how to make it. Consequently, each supplier undergoes a rigorous qualification process, which typically involves determining how best to make a product.

DSN Innovation’s A-TDP captures key manufacturing data and “tribal knowledge” needed by a supplier when quoting a part including drawings and technical specifications, equipment and machinery, CNC code and process instructions packaged in a way that eliminates the need for each responding vendor to re-create the information in an RFP. The A-TDP significantly reduced the Army’s supplier qualification effort by allowing them to more quickly source manufacturers with the right equipment, processes, and capabilities.

The next step was to configure the supplier network by identifying suppliers with the capacity and capability to match the A-TDP manufacturing processes. This step represented a fundamental shift from a “qualified supplier” to a “qualified process” and delivered a dramatic reduction in time and cost. Another benefit was a significant increase in agility (the ability to quickly assemble and reconfigure the supplier network based on process needs).

Advanced Enterprise Infrastructure

Once identified, suppliers needed to view all technical data easily, including the A-TDP, regardless of their current systems or software. This was accomplished using DSN Innovations’ JobSight Collaboration module, which allows all supply chain participants to securely view and collaborate around any information—from detailed specifications to 3-D models.

As the infrastructure foundation, JobSight is a suite of software tools that facilitates coordination and collaboration across the extended enterprise, regardless of platforms. Another module is JobSight VisAbility, a simple Web-based interface that provides instant visibility into each stage of both the manufacturing and shipping processes at each supplier.

Unlike most supply chain software that only offers shipping information, JobSight VisAbility provides the entire picture of critical manufacturing processes on a clear, easy-to-read dashboard.

Visibility into the supplier network’s manufacturing process not only provides instant information updates from all supply chain participants to ensure greater productivity but also ensures early warning information of problems before they impact the production schedule. The infrastructure also is equipped to facilitate compliance with export control regulations.

Driving Change

Overcoming organizational and cultural barriers is crucial to the success of any project, particularly those that span multiple suppliers and government agencies. The third key component was to effectively drive adoption.

Although new skills, methods and tools are needed to navigate and manage in the AME environment, a successful AME environment also requires trust, shared goals and “orchestration,” instead of traditional “command and control,” hierarchical supply chains. ARDEC partnered with DSN Innovations as a trusted, third-party “orchestrator” to solve supply chain challenges through an infrastructure of services and software solutions. The collaboration was the unifying theme to create an agile manufacturing supplier network that facilitated approaches to operational decision-making and coordination and the metrics needed to measure results.