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Creating Ammunition Enterprise ExcellenceCreating Ammunition Enterprise Excellence

Mr. Kevin FaheyDeputy Program Executive Officer for

Ammunition(973) 724-7102

Kevin.Fahey@us.army.mil

39th Annual Gun & Ammunition/Missiles &

Rockets Conference

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Key PointsKey Points

Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management.

Instilling discipline/System Engineering mentality in the way we look at every aspect of the ammunition enterprise

Still have major work to do in working with and communicating with our customers/external interfaces

The Ammunition Enterprise has Addressed Critical Needs and is Poised to Focus on Long Term Strategic Challenges

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MISSION LEAD SUPPORT

Hardware Production PEO-AMMO JMCComponents for Renovation (Maint Spt) PEO-AMMO JMCAPE (Maint Spt) PEO-AMMO JMC

RDT & E PEO-AMMO JMC

Industrial Base Co-LeadPAA Program / Budget / Receive Funding PEO-AMMO JMC

Receipt / Issue JMC PEO-AMMOStorage / Distribution Management JMC PEO-AMMOInventory / Accountability JMC PEO-AMMOSafety / Security JMC PEO-AMMO

Maintenance JMC PEO-AMMOQuality Assurance (ASRP / Surveillance) JMC PEO-AMMO

Demilitarization/ Disposal PEO AMMO JMC

Acquisition Strategy PEO-AMMO JMC

OMA Program / Budget / Receive Funding JMC PEO-AMMOTransportation JMC PEO-AMMO

ACQUISITION

LOGISTICS / SUSTAINMENT

KEY TO ENTERPRISEKEY TO ENTERPRISE: INTEGRATION AND SYNCHRONIZATION: INTEGRATION AND SYNCHRONIZATION

Ammunition Enterprise Responsibilities(As briefed to the AAE and CG AMC on 6 December 2002)

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Ammunition Enterprise DefinitionAmmunition Enterprise Definition

The Ammunition Enterprise is the integration of people, infra-structure and processes required for ammunition life cycle management to support the warfighter.

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Enterprise Enterprise Management PhilosophyManagement Philosophy

Promote Best Value Acquisitions

Utilize Disciplined Processes

Deploy Six Sigma and Lean Design/Production

Promote Continuous Process Improvement and

Technology Insertion

Promote Commonality and Interoperability

Promote Spiral or Evolutionary System Development

Ensure customers voice in the process

Put Eyeballs On – “Trust, but Verify”

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Executive Black Belt ProgramExecutive Black Belt Program

Initiated VSE facilitated monthly sessions at PEO Ammo

with Sr. PEO, JMC, ARDEC Leaders on Jun 03

Learning Lean Six Sigma tools through lectures and three

project teams working on:

Procurement of ammunition

Supplier assessment process

Engineering support process

Mapped ammo enterprise and prioritized processes

improvement opportunities

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Expected PaybackExpected Payback

Acquisition management consistency Fact-based decision Better prioritization and application of resources All aspects of the enterprise taken into consideration during

process Complete, consistent and comprehensive acquisition strategies Streamlined processes Baseline for our decisions Better understanding and management of risks Manage Ammunition as a major acquisition program across the

enterprise and not a commodity Reliable and effective products for the war fighter

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Deployment ModelDeployment ModelEnterprise Excellence Enterprise Excellence Enterprise Excellence Enterprise Excellence

Lean Metrics

Lean WorkloadBalancing

Process Metrics

Lean Process

Process Optimization

QualityManagement

System

Effectiveness

Efficiency

Voice of theCustomer

Six-SigmaProject

Selection

Six-SigmaProcess Control

Six-SigmaProcess

Improvements

A A disciplineddisciplined, , structuredstructured approach for process and product approach for process and product

optimization that is focused on the effectiveness' and efficiency optimization that is focused on the effectiveness' and efficiency

bottom line of the organization.bottom line of the organization.

DevelopAmmunition

AcquisitionOf Ammunition

ProductionOf Ammunition

sRequirements Generation Process - AAORequirements DocumentFunded Program

• Program Management/Planning/Control

• Contracting• System Engineering• Test and Evaluation• PPBES• Milestone Review Process

DP2 3

4

Yes

No

Technical DefinitionMilestone C Industrial Base Strategy

Funding• Acquisition Strategy /

Planning• Contracting• Program

Management/Planning/Control

• Review/Certification if TDP if Applicable

• PPBES• Pre-production Engineering• Price & Availability• IM Strategy (legacy

systems)

Contract

Funding

StockpileManagement

• Production/Systems Engineering (if Applicable)

• Design and Process Improvement• Production Testing• Production Monitoring• Configuration Management• Acceptance• Program

Management/Planning/Control• Manufacturing• Quality Assurance• First Destination Shipping• Contract Modification• Safety and Environmental

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Ammunition/ComponentsSurveillance Requirement Contingency/Out-loading Requirements

• Program Management/Planning/Control

• Surveillance Program / QDR Suspensions

• Inventory Control/Accountability• Receipt and Issue• Distribution and Requisitioning• Out loading• Retrograde• Transportation• Maintenance of Storage Facilities• Safety/Security• Pre-positioning • Malfunction Investigation• PPBES

6/7

ServiceableObsoleteUnserviceableFunded ProgramTechnical definition

TechnologyDevelopment

• S and T • Systems

Engineering• Modeling and

Simulation• Technology

Transfer• Configuration

Management• New Technologies

• Developing Technologies

Ammunition Enterprise MapAmmunition Enterprise Map

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Maintenanceof Stockpile

Sales

DemilitarizationOf Ammunition

MaintenanceRequired5

• Program Management/Planning/Control• Maintenance Planning• Parts Procurement• Contracting• Acceptance• Safety security environmental• Execute Program• Management Control

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Yes

No

• Program Management/Planning/Control

• Commercial Sale• Develop Demil Technologies and

Procedures• R3

• Contracting• Disposal• Recode to Stock

• FMS• Presidential Drawdown• Direct Sales• GFM

E

• Unserviceable• Recap• Modernization

Expended?

5

6

7

8 Expended?

4/5

No

No

Organic Issue

• Requisition• Training• Combat• Testing

Ammunition Enterprise MapAmmunition Enterprise Map

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Enabling InitiativesEnabling Initiatives

PEO Ammo/JMC MOU

Operating in a Joint Services environment

Industrial Base Strategic Planning

Demilitarization Strategic Planning

Munitions Readiness Reporting

Collaborative Systems Environment

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Summary – The Ammunition Summary – The Ammunition Enterprise is …Enterprise is …

An integrated organization that sees the “big

picture” and hears the “voice of the customer”

Making fact based decisions

Continuously improving effectiveness and

efficiency

Championing innovation at all levels

Supporting the Joint warfighter in Supporting the Joint warfighter in

every way possibleevery way possible

DiscussionDiscussion

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Ammunition EnterpriseAmmunition Enterprise

Mission: Single Manager for Conventional Ammunition Life Cycle Acquisition Management of Ammunition

Key Objectives: Unify and Integrate Ammunition Management Under One

Single Chain of Command – Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management

Develop a Unified Munitions Acquisition Strategy Identify and Optimize Key Business Processes Develop an Overarching Industrial Base Strategy (Organic

and Commercial) Provide Integrated Supply Chain Management of the

Ammunition Production Base

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Enterprise ExcellenceEnterprise Excellence

Create an agile organization capable of quickly

addressing problems, changing budgets,

changing requirements, changing technology,

changing industrial base etc.

Culture based on fact-based decision making

Maximize value though quality management-

voice of customer-effectiveness-efficiency

Value is the timely delivery of effective quality Value is the timely delivery of effective quality ammunition that is safe and provides our warfighters ammunition that is safe and provides our warfighters

an overmatch capability-readinessan overmatch capability-readiness