Manufacturing Technical Assistance Production Program (MTAPP) Pilot TACOM Industrial Base Operations (AMSTA-LC-IO) As of 16 July 2009 1 MTAPP Mission & Vision FY 2014 Mission Support the affordable readiness objectives of TACOM weapon systems by assisting critical small-to-medium sized manufacturers within TACOM’s commercial industrial base Vision Enhance the US Army Industrial Base solution portfolio by developing & deploying best-in-class supplier performance diagnostic assessment tools and continuous process improvement frameworks for use by the IBO 2 MTAPP Program Timeline Army MTAPP Program - SURGE MTAPP Research Study & Pilot AIR FORCE USAF MTAPP Launched –2003 TACOM MTAPP Program Office July 2009 115 supplier engagements 2003 • • • • • 2004 2005 2006 5 Year Air Force program Small business requirement Growth oriented program > $500 M incremental awards >$100 M operational savings 2007 2008 2009 2010 2011 • 3 year Army program • Surge contract support • 20 suppliers • Weapons & TWV focus 2012 2013 2014 MTAPP II Program – DRAW DOWN AF / TACOM Joint Projects • • • • • • • Abrams • MRAP • Howitzer • Gunmount FY 14 contract – The Asaba Group Revised mission / supplier ID criteria Complete 32 assessments & TA Redefine supplier capability - SRP Critical suppliers – TWV, Small Arms Define draw down impact on mfg skills MTAPP FY 14 – Same Mission - New Objectives & Tool Set 3 Management & Process Overview TACOM MTAPP Program Management MTAPP MAJOR STAKEHOLDERS PEO/PM Soldier PROCESS 1 Supplier Nomination By Stakeholder / ID by IBO • TACOM LCMC supplier / contract nomination • Preliminary Supplier & Contract Analysis based on WS criticality • FSC/NAICS filter applied • SB preference • Supplier acceptance GCS 2 TACOM LCMC/ AMC DLA CS&CSS Comprehensive Assessment & Contract Corrective Action Plan 3 Corrective Action Implementation Technical Assistance • TA Examples: • SCOR: Plan, Source, Make Deliver & Return process and capability assessments • Sourcing Support • Lean six sigma trng • Process mapping & root cause analysis • MRP implementation • QMS certification • Contract impact review: MRP, Quality, Production scheduling • Technical skills support See attached: Revised Assessment Templates 4 4 Transfer of Continuous Process Improvement Ownership • Develop performance sustainment requirements • Full transition to continuous process improvement phase • Identify long-term operational improvement requirements Information & Document Flow Contract Constraint 1 Identification & Supplier Selection Stakeholder Nominations MTAPP No Supplier/ Contract Info Intake IBO Preliminary Assessment Selection Review MTAPP Yes Communication to Stakeholders E-mail Notification Supplier No Qualified Supplier Contact Supplier Decision Letter requesting participation Supplier Yes Request for Action to The Asaba Group Comprehensive 2 Assessment & Contract Corrective Action Plan IBO Review Report of Findings & Corrective Action Plan Technical Assistance Proposal 3 Corrective Action Implementation Technical Assistance Exit Assessment Report Transition to Supplier 4 Owned Continuous Process Improvement Supplier Owned Continuous Improvement Plan Example of Assessment Scorecard ` MTAPP SUPPLIER ASSESSMENT DIAGNOSTIC REPORT ENTERPRISE SUMMARY MTAPP SUPPLIER SCORE COMBINED SCORE 3.4 1 PERFORMANCE ATTRIBUTES MTAPP AVG +/- 3.1 0.3 IBO SECTOR ANALYSIS CRITERIA ENTERPRISE SUMMARY COMBINED SCORE 5 (Best) MTAPP SUPPLIER SCORE MTAPP SUPPLIER SCORE 3.9 1 MTAPP AVG CPI DOD PARAMETERS 5 (Best) MTAPP SUPPLIER SCORE RELIABILITY 2.8 2.5 END PART CRITICALITY 4.1 RESPONSIVENESS 4.2 3.5 SUPPLIER DOD VIABILITY 3.0 AGILITY 3.2 2.2 SUPPLIER CAPABILITY 4.3 2.5 3.1 SUPPLIER CAPACITY COST & ASSETS 1 5 (Best) MTAPP SUPPLIER SCORE PERFORMANCE DRIVERS CPI BUSINESS FUNCTIONS 5 (Best) MTAPP SUPPLIER SCORE BUSINESS PROCESSES 3.5 3.0 ESTIMATING & QUOTING 3.4 INFORMATION LINKAGES 2.3 2.6 PURCHASING 2.8 HUMAN CAPITAL/SKILLS 4.5 3.4 ENGINEERING 3.8 MASTER PROD SCHEDULING 2.3 3.5 PRODUCTION 4.1 FINANCIAL SYSTEMS 3.3 2.7 QUALITY 1 5 (Best) INDICATOR 3.9 1 MTAPP AVG INDICATOR 4.2 1 5 (Best) All Supplier Specific Data Covered By MTAPP NDA per Contract WHZV-10-P-1035 INDICATOR Corrective Action Technical Assistance • Collaborative corrective action plan implemented • Measurable improvement of contract adherence • Transition of corrective action plan to CPI 1 Contract Constraint Identification & Supplier Selection 2 Comprehensive Assessment & Contract Corrective Action Plan 3 Corrective Action Implementation Technical Assistance 4 Transfer of Continuous Process Improvement Ownership Onsite TA is provided for a period of 90 days post assessment Where possible, remote assistance is utilized Suppliers can also utilize local training resources (PTAC, MEP) On-site technical assistance provided - Examples: • • • • • • QMS AS 9100 (or like) compliance DCMA process audit DCAA accounting system certification MRP system gap analysis – module implementation Lean six sigma training Market segmentation & DoD situational analysis 7 Example Program Metrics Contract Impact Metric (Examples) As-Is Baseline Exit Assessment Delivery & Schedule Delivery % to commit date Fill Rates Fulfillment lead times 50% 60% 55 Days 75% 80% 45 days Productivity Setup Time Non-value Added Time % Capacity utilization 8 Minutes 30% 60% 4 Minutes 15% 80% Material Management Work-in-Process Inventory Inventory Days of Supply Sourcing cycle time $50K 30 6 Weeks 15 4 Weeks Warehousing & Logistics % of costs Storage and handling cost Shipping cycle time 19% 15% 10 Days 10% 6% 5 Days Safety # of incidents/month Avg. days without incident Cost of incidents 5 15 2% 2 30 1% Contract Closeout MTAPP Exit Assessment - Metrics Example 8 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Improvement to-date 25% 14% 18% 50% 50% 20% 50% 33% 9% 9% 50% 60% 100% 50% Supplier Transfer Scorecard PLAN High Level Management Process Impact Factor PROCESS FACTORS IMPACTING CONTRACT Concern Operational strategy workshop with crossfunctional management team Process Design Value stream mapping using TACOM LCMC requirements Process Coordination Time-based enterprise analysis of resource utilization and smoothing Decision Making Document procedures and decision criteria to expand decision capacity Capability & Skills Procurement 101 training Technical /engineering resource capacity Temporary staffing of engineer for bid & quote to free internal eng on TACOM Manual / labor efficiency Work order documentation and traveler development Infrastructure Information Systems Expand excel based tool to cover scheduling of production and material on TAOCM LCMC orders External Processes & Resources Sub-tier suppliers & Outsourced process (Ex. Heat treating) Identify alternative sources and meet with current provider to determine possible improvements Process Development / Management Human Resources Current CPI Recommendation / Corrective Action Strategic objectives aligned to management direction Leadership / Strategy Baseline = Direct & Immediate impact = Indirect impact or linger term 9 CPI CPI CPI CPI = No material impact