Attacking Obsolescence
Within the HM&E Navy
Douglas Swenson, DMS/Obsolescence Manager, NAVSEA Philadelphia
Abstract
Technical responsibility for US Navy Hull, Mechanical and Electrical (HM&E) Equipment and
Systems resides at NAVSEA Philadelphia PA. This technical responsibility spans Acquisition, Inservice Engineering and Life Cycle Management communities. A problem exists, affecting
supportability and maintainability of HM&E equipment and systems, Diminished Manufacturing
Sources and Material Shortages (DMSMS). The problem occurs when manufacturers of a
product discontinue production, supply or support of a particular component, equipment or
system. The problem spans a myriad of reasons: diminishing demand rates, production costs,
result of a technology refresh, diminishing availability of needed resources or governmental
mandates. The Engineering and Logistics communities handled DMSMS in a predominantly
reactive mode. NAVSEA Philadelphia has aligned with the Assistant Secretary of the Navy for
Research, Development and Acquisition (ASN RD&A) directed approach, developing a proactive
monitoring approach providing up front involvement in the life cycle. This approach includes
direct input and prioritization from customers and sponsors, and continuous feedback and
reporting, with specific metrics defined. NAVSEA Philadelphia has also developed a modified
reactive approach for issues not captured in the proactive phase. Currently, we are working with
PEO Ships (CG’s, DDG’s, FFG’s) and PEO Carriers (CV, CVN’s) to aggressively attack this
problem. We are actively working with PEO Ships (PMS470) to bring in amphibious ships as
well.
Identification of the Problem
NAVSEA Philadelphia PA is one of the
leaders, within the HM&E community for
handling the problems associated with
DMSMS/Obsolescence for HM&E
Equipment and Systems. Their approach
tactics covers a cradle-to-grave approach of
ownership for the Fleet, In-service
Engineering, and Life Cycle Management
communities. Their scope of coverage
spans both the technical and logistics
elements. DMSMS and equipment
obsolescence has adversely affected HM&E
equipment and systems supportability,
capability and affordability. DMSMS is the
situation one encounters when a
manufacturer or supplier of a product makes
or is forced into a decision to discontinue the
production, supply or support of a particular
system, component, or equipment. This can
be for a myriad of reasons, including but not
limited to, diminishing demand rates,
production costs, result of a technology
refresh, poor asset management, diminishing
availability of needed resources or
governmental mandates, e.g. environmental
impacts. In recent years, the US Navy
Engineering and Logistics communities for
HM&E handled this issue in a
predominantly reactive mode vice taking a
more well thought out, proactive approach.
Although, in many cases, HM&E equipment
and systems have not changed dramatically
in their design, composition or function for
many years, there have been changes in the
processes of manufacturers and the business
rules governing the product line of most
manufacturers, suppliers and distributors.
This has placed an impact on maintaining
older designs. Compounding this challenge
is the operational tempo and decisions to
extend the service life of a ship or system
beyond the original design as in Mid-Life or
Sustainability Programs. Considering these
issues, it is not difficult to understand why
Original Equipment Manufacturers (OEM’s)
and their various suppliers do not continue
providing spare parts and services. Other
contributing factors to DMSMS include the
high dependability and durability of
equipment beyond predicted rates, low
equipment use, or unauthorized stockpiling
of assets outside the existing supply support
system, i.e. the unauthorized procurement of
supplies and services that do not use the
demand tracking of the authorized supply
system. This last issue not only impacts
material availability but can lead to
increased material costs due to
independently negotiated prices, potentially
nonconforming material leading, at a
potential minimum, to degraded
performance of the procured part or part
serviced and reduced service life of the next
higher assembly or system and, at a potential
maximum, to a safety or operational
concern.
The problem also arises with the insertion of
new, highly sophisticated technology were
equipment and systems are constantly going
through various phases of technical refresh
and prior component, equipment or system
demand slows or stops for a particular use.
Manufacturers may incorrectly see this as a
diminished need or requirement.
Regardless of the cause, in many cases, the
In-Service technical and logistics
communities are not notified soon enough
about DMSMS issues. This results in a lack
of support at inopportune times, causing the
reactive process to engage. Without proper
foresight and control, this reactive process,
can be time consuming, causing multiple
agents to search for the same hardware or
services without the realization that there are
developed tools and data research sources at
their disposal to aid them in their search.
The reactive process, although not the
optimum solution and usually functioning
outside required lead-times, will provide for
some immediate equipment and service
requirements and in some cases, can also
address recurring future needs.
It was this constant reactive process that
caused NAVSEA Philadelphia to develop
and execute a structured reactive process,
and in addition, develop a very disciplined
proactive approach and associated process to
help their engineering and logistics
personnel support the Fleet.
In September 2004, NAVSEA Philadelphia
participated in a Naval Warfare Center
(NWC) Community of Practice (COP) that
completed a value stream analysis of all
NWC tools to identify and leverage
commonality. In October 2004, The
Department of the Navy (DON) established
a DMSMS Working Group.
In January 2005, Mr. John Young, (ASN
RD&A), set forth universal guidelines for
managing and mitigating DMSMS within
the Navy. NAVSEA Philadelphia has
aligned with the ASN RD&A directed
approach to support HM&E equipment and
systems across all platforms by developing
and implementing a proactive approach and
process to manage obsolescence. This
approach is applicable to all ship classes and
includes participation of suppliers through
very rigorous and constant vendor queries
and a continuing market analysis gauging
current OEM manufacturing capabilities.
This process includes in-depth analysis of all
existing databases for information pertinent
to DMSMS. Overall “health” of the
equipment/system is determined or predicted
and issues are evaluated for validated
obsolescence criteria. The process also
provides for a continual feedback and
reporting process, with defined metrics
points. NAVSEA Philadelphia, is
committed to this proactive process, will
continue to refine it and will strictly
maintain the modified reactive approach,
realizing that some issues just cannot be
captured proactively. The combined
proactive and modified reactive processes
are actively engaged with the resources
available in NAVSEA Philadelphia.
Also in January 2005, the Deputy Assistant
Secretary of the Navy for Logistics (DASN-
L) issued a letter requiring all ACAT
programs to complete a DMSMS Plan and
submit that plan to his office by August
2005. In February 2005, the DON-DMSMS
Working Group developed an outline
DMSMS Management Plan which evolved
into the DASN-L Management Plan Guide
dated April 2005.
RESOLUTION
ACTIONS
PEO DECISION
NOMINATED INPUTS
Reactive & Proactive
RECOMMENDED
SOLUTIONS
OBTAIN/LOAD BOM
PROACTIVE
TOOL
TRACKER
WHAT IF ?
ANALYSIS
CAPTURE LOGISTIC
DATA
VENDOR SURVEYS/
ANALYSIS
REPORTS &
STATUS
Consistent with evolving policy, multiple
activities continue working specific targeted
areas of DMSMS such as the Department of
the Navy (DON) DMSMS Working Group,
a sub-group to the DOD DMSMS Working
Group, the Aegis Weapons System Strategic
Obsolescence Initiative (SOI) DMSMS
Working Group, initiated by Integrated Ship
Controls (ISC) and Integrated Bridge
System (IBS), the LPD-17 Obsolescence
Management Integration Group for
Obsolescence Management for sustainment
of Commercial off The Shelf (COTS)
hardware and software, LHD-8 DMSMS,
Program Executive Office (PEO) Carriers
DMSMS and NSWCCD Machinery
Controls System (MCS) Integrated Process
Team (IPT).
SSES
DMSMS MGR
ISEA/LCM
HEALTH
ASSESSMENT
INFO
TAKE ACTION
OPEN DMSMS CASE
CONTINUE
TO
MONITOR
SPONSOR
DECISION
ACTION
FIGURE 1 - NAVSEA Philadelphia
Obsolescence Management Plan with
Proactive Process
REACTIVE
NOTIFICATIONS
SSES DMSMS MGR
VALIDATE
SSES DMSMS MGR
LCM, ISEA
DETERMINE SCOPE
AND PRIORITIZE
TRACK
RECOMMENDATIONS
TRACKER
SPONSOR
DECISION
SSES DMSMS MGR
LCM, ISEA
The NAVSEA Philadelphia MCS
Obsolescence Management Plan was
adopted by NAVSEA in December 2005.
The HM&E DMSMS/Obsolescence
Management Plan was initiated in October
2006.
The NAVSEA Philadelphia Obsolescence
Management Plan is depicted in both
Figures 1 and 2.
RESOLUTION
ACTION(S)*
REPORTS &
STATUS
INFO
ACTION
FIGURE 2 - NAVSEA Philadelphia
Obsolescence Management Plan
The NAVSEA Philadelphia approach
manages the problem of obsolescence by
implementing a strategy consisting of
proactive and an improved-reactive strategy.
Defining and implementing processes in
conjunction with various data base tools,
NAVSEA Philadelphia minimized to the
maximum extent possible, the impact on
readiness of HM&E and MCS equipment
and systems selected for proactive
management caused by obsolete items or
items likely to become obsolete in the
foreseeable future.
Proactive DMSMS Management
A proactive strategy is used to actively
monitor an HM&E equipment or system
from design or initial installation into the
fleet, through its Life Cycle, to eventual
removal of the system or decommissioning
of the ship. New system acquisition will
includes extensive obsolescence efforts in
the various Statements of Work and contract
guidance for deliverables to assist in the
DMSMS abatement efforts. NSWCCDSSES Philadelphia has established a
program baseline for proactive obsolescence
management, necessitating Program
Managers to nominate and fund “new” or
“nearly new” equipment and/or systems.
This process reviews designated critical
systems, identified by the applicable
ISEA/LCM. Consideration is given to
mission criticality, risk of obsolescence
susceptibility, safety of personnel or
equipment, Top Management Attention/Top
Management Issues (TMA/TMI) and
existing known obsolescence issues.
For selected systems and equipment
identified and approved by the sponsor
(applicable NAVSEA PEO/Fleet) for
proactive monitoring, NAVSEA
Philadelphia provides the following
services:
(1) Verify and load a Bill of Material
(BOM) for the system or equipment into the
appropriate obsolescence monitoring tool.
The tool selected is largely determined by
the system characteristics. Using the
inherent capabilities of these tools, the data
from the BOM is associated with any
existing similar data in the tool’s database.
When the association is established, the
system “health” is readily determined and
resolution scenarios, when necessary, are
modeled. If no associations are made to
existing data, queries to other linked
databases and vendor surveys are conducted
to compile sufficient information to evaluate
and determine current system “health” and
to project future “health” and “already
identified” resolutions for any issues
modeled. Periodicity of regular follow-on
reviews, are based upon factors such as
system “health” and “criticality”.
The equipment/systems “health” of
designated critical systems will be
determined by using several automated
prediction tools that are fully developed and
available. One such tool is Horizon Solution
Suite (HSS), developed, managed and
maintained by Naval Surface Warfare
Center (NSWC) Crane Indiana. HSS was
developed primarily to support CommercialOff-The-Shelf (COTS) systems and
equipments. It is evolving to include nonCOTS systems and equipment and is the
proactive tool chosen by NAVSEA
Philadelphia for newly identified and
selected HM&E systems and equipment.
Other tools utilized are the MCS
Obsolescence Database, managed by
NAVSEA Philadelphia and used primarily
for tracking and monitoring Machinery
Control System equipments, and the Aegis
Weapons System (AWS) COTS Tracking
Database, used primarily for combat system
elements for surface combatants.
(2) Conduct vendor surveys using DMSMS
tool applications. OEMs and suppliers are
aggressively and routinely queried for
specified information. Their responses are
entered into the selected automated tool
database and the information is available to
users of the tool. This information will
establish parameters to provide a future
“health” assessment for a selected system.
Additional tools and databases are available,
e.g. OMIS from NUWC Keyport, and may
be used in managing obsolescence. The
Metrics reporting used is consistent,
regardless of the tools utilized.
(3) If, through proactive monitoring, system
“health” is shown to be deteriorating, the
appropriate sponsor is notified as well as
updating the toolset that is running the
proactive model to allow data sharing that
should identify and remove duplicate efforts.
If the sponsor wishes to direct resources to
the DMSMS issue, the issue is monitored
through establishment of a case number in
the NAVSEA Philadelphia DMSMS
Tracking Database system, which is used to
track all open and resolved cases that the
Station has implemented. The main input
screen of the DMSMS Tracking Tool is
depicted in Figure 3.
Mitigation or resolution decisions and
recommendations will be collected and
reported in the DMSMS Tracker Database.
This tool provides decision making
information for alternatives as they are
developed through a “What If” scenario,
modeled by the tool. A Business Case
Analysis (BCA) feature can also be
conducted.
Issue resolution options usually fall into the
category of, the manufacturer is still in
business and/or a qualified alternate source
is available. If an alternate source does not
exist and a suitable replacement Lowest
Repairable Unit (LRU) or component is not
found, the ISEA/LCM will initiate action
toward finding and qualifying a direct
replacement. Actions initiated are
dependent upon a preliminary evaluation. In
a parallel effort the ISEA/LCM and logistics
team will collaboratively research and
identify other possible solutions, such as a
Life-of-Type buy or if all else fails,
development of an alternate technical
solution.
these tools, support the NAVSEA
Philadelphia position to participate in the
DON’s “Common Data Warehouse
Initiative”.
Current US Navy Sponsors participating in
Proactive Obsolescence projects are PEO
Ships, PMS 3771 (LHD-8 New Ship
Acquisition), PMS317 (LPD-17 New
Construction), PMS312 (PEO Carriers),
PMS400F (PEO Ships/CG’s, DDG’s and
FFG’s) and PMS470 (PEO Ships
Amphibious and Auxiliary).
Reactive Obsolescence
Management
Despite constant, proactive monitoring and
analyses, an improved reactive strategy is
still used as emergent obsolescence issues
are, in varying degrees, inevitable. The
Existing process identifies Fleet, ISEA and
supply system material support problems,
i.e. Technical Referrals (TRs) and Defense
Logistics Agency (DLA) requests for
engineering assistance (DLA 339 process)
are examined, and refined to include
improved areas of communication across the
enterprise, and have improved the
notification process of obsolescence issues,
enabling more aggressive research and more
efficient resolutions.
Details of reactive obsolescence analysis
and accumulation of data are organized and
presented utilizing improved metrics.
Primary data will be formatted and included
in HM&E and MCS Program Management
status reports and presentations. This data
consists of several categories; including,
program/systems, configuration, opened and
closed issues, resolution, and cost data.
FIGURE 3 – DMS Tracking Tool Screen
Final recommended DMSMS decisions, by
technical and logistical personnel, will be
supported by reliable analytical data from a
variety of automated tools. Utilization of
The reactive obsolescence management
process requires validation of identified
problems as a DMSMS issue. This is a
designed step which avoids costly, multiorganizational research and time consuming
resolutions through needless engineering
actions.
In addition to DMSMS notification by TRs
and DLA 339s, additional information is
provided by the; Hull Mechanical &
Electrical Equipment Data Research System
(HEDRS) program, In-service Engineering
Agent (ISEA)/Life Cycle Manager (LCM)
Inputs, Original Equipment Manufacturer
(OEM) notifications, the
Government/Industry Data Exchange
Program (GIDEP), New Construction
Program feedback and the Shared Data
Warehouse notifications program.
DMSMS Case Resolution
The intent of the resolution process is to
present obsolescence problem mitigation
options to the sponsor. These mitigation
options must consider technical and supply
issues while minimizing the overall adverse
impact to Fleet operational needs and safety.
The inputs into the resolution process are
derived from validation of the issues and the
deteriorating health of the equipment or
system undergoing review.
of the entire program, or otherwise on
individual issues as required.
As with most resolutions, there are often
multiple scenarios. As an example, the
manufacturer may have recently stopped
production or is still producing but intending
to terminate the product line in the near
term. Possible resolution actions could be as
depicted below:
 A mass buy of existing/remaining
stock, not only from the prime vendor,
but all suppliers/distributors and
stocking points.
 Negotiate an agreement with the
manufacturer to continue production
until sufficient inventories are
produced to support the remaining
ship platforms existing life cycle.
After the sponsor has provided approval to
proceed, and funding is received, the
ISEA/LCM will implement the resolution.
Regardless of the recommended solution, a
close liaison between the ISEA/LCM, Fleet,
logistics community, and sponsor is
maintained. The DMSMS case tracking
number, assigned through the DMSMS
Tracking Database, is established and an
issue statement is provided, synopsizing the
problem and distributing the information to
all appropriate personnel. The resolution
will be processed via the Navy
Modernization Plan (NMP) alteration
approval process, if required.
In another scenario, manufacturing has
ceased and new parts may no longer be
available. Possible resolution actions may
be:
 Identify alternate suppliers.
 Obtain technical data and develop an
alternate source.
 Develop innovative repair strategies to
extend system life.
 Technical refresh/upgrade to eliminate
the need for the obsolete parts.
 Asset reutilization and recovery from
equipment being removed or
upgraded.
 Reverse Engineering
 Commercial surplus market, new and
used.
 Research US Navy Inactive Fleet
(INACTFLT) assets.
The NAVSEA Philadelphia DMSMS Case
Tracking Database monitors the status of all
open and closed cases within NAVSEA
Philadelphia’s cognizant HM&E equipment
and systems community. When a case is
opened resources are allocated to provide
reports on virtually any data element to
support wide ranging requirements. This
tool and its reports provide instant visibility
Additionally, solutions follow a strict
“resolution tree” analysis, starting at the
least costly solution, through the highest
cost solution. Careful attention is paid to
each scenario to see which best suits the
needs of the equipment, system and
customer. Many times, the problem
resolution consists of elements from several
possible resolution scenarios. Typical
resolutions may be developed and presented
as options to Program Managers with the
possibility of sharing expenses across
platforms. This is an added benefit of a
centrally managed program. Figure 4 is a
Quad Chart depiction of a cross platform
resolution proposal with a mult-million
dollar cost avoidance.
FIGURE 4 – DMSMS Quad Chart
Conclusions
The operational, technical and logistics
communities continue to deal with DMSMS
issues every day. There are numerous
existing systems and tools that have been
developed to track and report issues. In
many cases, these systems are tailored for
specific needs, ship types, equipment and
systems. In some of the areas investigated,
there are personnel supporting these tools
that can provide assistance when requested,
and if required, tailor the information for an
individual’s needs including ship type or
hull specific. The systems and tools are
designed for the roles they were originally
intended for; but, it is the duty of an
informed technical engineering and logistics
community to put those tools to productive
use. Additionally, obsolescence and
DMSMS needs to be considered across
every engineering and logistics function. It
is possible to modify processes to fit
particular requirements, if necessary.
A well designed and disciplined, proactive
approach to identifying or predicting
obsolescence is the key to successful
management of the DMSMS problems
during the complete life cycle and it is more
efficient to incorporate plans during the
design, build, test, and field phases. As a
platform or system progresses along its life
cycle, without obsolescence consideration, it
is more likely to lead to a less effective,
poorly thought out, reactive DMSMS
solution. There are other considerations for
decision makers and the issues of the
individual problems will contribute to a
proactive or reactive methodology. Other
sources, including commercial companies
and government organizations that exist
primarily for DMSMS issues, can be
consulted to aid in decision making.
Without a monitoring, analysis and
resolution system, supported with robust
software tools to facilitate application of
DMSMS avoidance techniques “across the
board” of an entire ship platform,
obsolescence management will continue to
be problematic, causing needless negative
impact on the Fleet’s operational needs and
have a direct impact on truly economical
supply support.
NAVSEA Philadelphia has successfully
established and implemented viable plans to
aggressively monitor and mitigate proactive
and reactive DMSMS and Obsolescence
issues, and will continue to provide
outstanding support to sustain HM&E and
MCS equipments in the Fleet well into the
21st century.
References
Kunesh, N.J. (Deputy Assistant Secretary of
the Navy for Research, Development and
Acquisition-Logistics (DASN-RDA),
Diminished Manufacturing Sources and
Material Shortages Management Guidance,
memo dated 27 January 2005 (directs ACAT
Level 1 Program Managers to develop
DMSMS Management Plan).
Kunesh, N.J. (Deputy Assistant Secretary of
the Navy for Research, Development and
Acquisition-Logistics (DASN-RDA),
DMSMS Program Management Plans and
Metrics, memo dated 12 April 2005
(amplifies 27 January Memo referenced
above and forwards Management Plan
Guidance below).
Kunesh, N.J. (Deputy Assistant Secretary of
the Navy for Research, Development and
Acquisition-Logistics (DASN-RDA),
Diminished Manufacturing Sources and
Material Shortages Management Guidance,
dated April 2005.
Author Biography
In 1981, Mr. Swenson served in the Navy as
an Aviation Storekeeper on the USS
Saratoga (CV60) and as a civilian,
supporting the Service Life Extension
Program, developing and reviewing
Provisioning Technical Documentation
(PTD) for the Military Sealift Command
(MSC).
In 1989 Mr. Swenson began his tenure at
NAVSEA Philadelphia Pa in the Material
Support and Training Department. His
initial duties involved supply support issues
from the Fleet through Fleet COSAL
Feedback Reports and Allowance Change
Requests. He also supported the Machinery
Alterations program, providing the Fleet
required Integrated Logistics Support (ILS)
documentation.
Mr. Swenson was promoted to Platform
Manager for Provisioning and Supply
Support for the New Construction DDG-51
program and Life Cycle support for all the
PEO Ships hulls. Over his career Mr.
Swenson saw growing Obsolescence issues
throughout the fleet in the HM&E systems,
and developed plans and processes for issue
monitoring and mitigation.
In 2002, Mr. Swenson began to address the
need for a centralized DMSMS Manager at
NAVSEA Philadelphia as DMSMS and
Obsolescence became more prevalent. He is
currently the Division lead for all
Performance Based Logistics (PBL),
DMSMS initiatives.