Committed to ExcellenceTTank-automotive & ank-automotive & AArmaments rmaments COMCOMmandmandTTank-automotive & ank-automotive & AArmaments rmaments COMCOMmandmand

Transforming the Industrial Base

Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climate

Ground Systems Industrial Enterprise

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Outline

• GSIE overview, capabilities, and intent• Initiatives to date• Legislative reform• Financial reform• Lean initiatives• Workforce revitalization• Infrastructure reduction• Summary

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GSIE Overview• Combines the capabilities of Anniston, Red

River, and Sierra Army Depots, Rock Island and Watervliet Arsenals, and the Lima Army Tank Plant into a single Enterprise

• Designed to leverage the capabilities of the ground systems industrial base

• Goal is to continuously improve support to soldiers while reducing the cost of products and services to a level comparable with industry without the need for subsidies

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GSIE Capabilities

• Engineering and Prototyping• Manufacturing• Maintenance and Overhaul• Field Services

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• Product Design and Development• Rapid Prototyping• System/Component Simulation• CAD/CAM/CIM (Unigraphics/ProE/Autocad)• Dynamic/Stress Analysis

• Material Testing• Chemical Analysis• Oil and Lubrication• Metallurgical/Rubber

• Manufacturing Support• Product Redesign/Improvement• Lean/Six Sigma/ABC

Engineering and Prototyping

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• Precision Machining• 7-axis Machining Centers• CNC/Automated Cellular/Flexible Machining

• Fabrication/Assembly• Welding (Robotic, Submerged, Orbital, etc.)• Ferrous, Non-Ferrous, Composites, Rubber, and Titanium

• Casting/Forging• Cannon Tubes• Ferrous, Non-Ferrous, and Titanium

• Heat Treatment/Plating/Finishes• Cylinder/Cannon Tube Chrome Plating• Chemical Agent Resistive Coating (CARC) Painting

• Tool, Die, and Gage

Manufacturing

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• Systems/Subsystems Support• Wheeled and Tracked Vehicles• Self-Propelled and Towed Artillery• Small Arms and Mortars• Major Subsystems (engines, transmissions, etc.)

• Optics/Electronics• Night Vision• Radiological• Circuit Cards

• Unique Processes• Robotic Metal Spray• Rubber Denuding

• Testing• Gymnastication/Live-Fire/Test Track• Engine/Transmission/Hydraulic Component Test Facilities

Maintenance and Overhaul

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• Forward Repair Facilities/Teams• Modifications/Upgrades• Failure Analysis• Testing (laboratory and simulation)

• Spare/Repair Parts• Reverse Engineering• Rapid Prototyping

• Receipt, Storage, and Issue of Equipment• Manual and Automated Storage/Retrieval Systems• Open-air and Enclosed Facilities• Environmentally Controlled and High Desert Storage

Field Support

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Capabilities Summary• Cradle to grave capability

• Full range of processes and materials• Current, interim, and future systems• Leading edge of new technologies

• Partnerships to meet the Warfighter’s needs• Private industry• Win-win for government and industry

• Flexible infrastructure • Ability to meet any requirement

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GSIE Intent

• To grow the workload at each installation, not rearrange existing workload

• To clarify and simplify the rules under which we operate

• To make the rules applicable to all• To advance public/private partnerships • To increase efficiency• To reduce capital expenditures

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Initiatives to Date• Established organization 7 October 2002• Formed Corporate Board of Directors and Leadership

Council• Approved as Business Initiatives Council (BIC)

initiative (legislative and financial reform)• Implementing lean and other efficiencies• Revitalizing the workforce• Focusing on quality• Integrating engineering and production• Pursuing additional workload• Looking at footprint reductions

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Legislative Reform• 11 statutes currently affect business, 3 prominently• Introduced by different Congressmen for different

reasons• All offer benefits for some installations, but not all• Variance causes confusion, uncertainty, and program

delays• New legislation being offered that combines the best

of each into a single statute• Clarifies the rules and applies them to everyone• Intended to facilitate more public/private partnerships

– Firm fixed prices, multi-year contracts, variable costing

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Financial Reform

• Examples– Return of financial gain– Capital investment authority– Depreciation rules– Capacity measurement– Removal of material costs from rates– Metrics

14 Army Working Capital Fund (AWCF) Business Initiatives Council (BIC) reforms

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Sample of Lean Projects AVDS 1790

RECIPROCATING ENGINE PROCESS

SEE VEHICLE RECAP PROCESS

FORWARD REPAIR SYSTEM

ANAD

RRAD

RIA

•Cost avoidance: $4.2M

•Turn-around Time: 62 days down to 36 days

•Labor efficiency: 33% Improvement

•Now, AVDS 1790 is part of entire reciprocating engine process, exporting gains to 6V53, M903, 8V71, and APU.

•Cost avoidance: $4.3M

•Monthly output up 30%

•Labor hours per engine: 34% reduction

•Travel distance reduced by 35%

•Labor efficiency: 14% Improvement

CLASS VIII MEDICAL SUPPLIES (COSIS)

SIAD

•Eliminating excess handling and eliminating non-value added movement of materials

LEAN PROJECTSWVA

•Cost avoidance: T-53 and 81mm Mortar with a savings of $330K.•Weapon System Lead Time process will use 120mm M256 Cannon as pilot project to reduce weapon system lead times

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Staffing Initiatives andWorkforce Revitalization Efforts

• LEAN staffing process– Reviewing each vacancy at command level– Reallocating or reengineering as required– Targeting 2 for 3 direct replacements and 1 for 3 indirect

• Workforce revitalization– Apprentice program – Co-op program – Student employment program – Worker trainees– Temporary hires and terms employees to enhance flexibility

• Efforts and results– Working toward 75/25 percent direct/indirect ratio– Reducing average age of employees– Reducing average length of service

• Trends going in right direction

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Average Age

4545.5

4646.5

4747.5

4848.5

4949.5

50

FY99 FY00 FY01 FY02 FY03 FY04 FY05

AGE

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Examples of Infrastructure Reductions

• Watervliet Arsenal– 290,000 square feet of floor space– 525 pieces of industrial plant equipment– Potential for more

• Rock Island Arsenal– 700,000 square feet of floor space– 683 pieces of industrial plant equipment

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Summary

• Leverages the government-owned industrial capability

• Grows the workload at each installation• Reduces unit prices to customer• Eliminates the need for any subsidy• Revitalizes the workforce• Fosters more public/private partnerships