structure of procurement quality control at the ministry ... · structure of procurement quality...

Structure of Procurement Quality Control at the Ministry of Defense and Future Approach

Deputy Director General (General Coordination)Equipment Procurement and Construction Office,

Ministry of DefenseOctober 12, 2012

1. Overview of defense equipment procurement

2. Structure of procurement quality control at the Ministry of Defense

3. Future approach

Contents

２

Overview of defense equipment procurement

1 Procurement work for defense equipment, etc. (Central and regional procurement)

Minister of Defense

EPCO Ground SDF

Maritime SDF

Air SDF

Other organizations, etc.

Central procurement

Regional procurement

・Fighters, warships, tanks, missiles, etc.・Modification and repair etc. of aircraft, etc.

・Procurement of parts, etc.・Repair, etc. of equipment (except aircraft)

３Source: EPCO pamphletEPCO：Equipment Procurement and Construction OfficeSDF：Self Defense Force

2 Contract amounts for central and regional procurement (2011)

４


６２％

Source: EPCO pamphlet

５

3 Change in procurement record and number of orders

(100 millions yen)


02,0004,0006,0008,000

10,00012,00014,00016,00018,000

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Central procurement orders

Central procurement amount

Regional procurement amount

Source: Prepared from EPCO yellow paper data(Year)

4 Flow of procurement work for equipment, etc.EPCO

② Contract method selection

③ Calculation of expected price

④ Bidding/negotiation

⑤ Contract conclusion

⑧ Fee payment

Ground/Maritime/Air SDF, etc.(procurement requestor)

① Procurement request

Regional defense bureau/branch

⑥Oversight/inspection/cost auditGround/Maritime/Air SDF, etc.

Receipt unit, depot, etc. (Unit using, etc.)

Company(contracted

party)

Instruct Report

⑦ Equipment delivery

Execute

６


1 Structure of quality control at the Ministry of Defense

７

Structure of Procurement Quality Control at the Ministry of Defense

Ground/Maritime/Air SDF, etc.

EPCO

Regional defense bureau, etc.Oversight/inspection work

Procurement request

Procurement work

Unit using at Ground/Maritime/Air SDF, etc.

Receiving inspection

Maintenance/ supply

Request quality control method, etc. according to Defense Specifications,

etc.

Maintain/Manage quality of equipment, etc. to meets specified standards

Confirm the quantity, etc. of equipment, etc. delivered from

manufacturing plant, etc.

Conduct oversight and inspect finished product as necessary at manufacturing plant, etc., and

secure requested quality


2 DSP：Defense Specifications

８

Documents that note requisitions of acquisitions. (shape, structure, quality, characteristics, test methods, inspection methods, packing methods, labeling methods, conditions of shipment, etc.) and that define the requisitions of acquisitions, etc. that requires commonality to be secured in particular among equipment, etc. expected to have high frequency of use and continuous procurement. ◇Quality management etc., common specifications (DSP Z ○○○○)

Number 9000 9001 9002 9003 9007 9008

Name

Quality control

application specifications

Quality assurance common

specifications

Quality management

common specifications

Inspection system


QMS-Requirements


Quality management etc., common specifications

Main useSelection of 9001, 9002, 9003, etc.

Development of major

equipment

Manufacture/repair of major equipment

Manufacture/ repair of

equipment

Supplemental requirements of

JIS Q 9001

Combination of JIS Q 9001

and 9100 requirements

Year established 2002 1982 1982 1982 2001 2010

Expected cancellation March 2013 March 2013 March 2013 March 2013 March 2013 Continued

◇DSP are...


Year1955196019651970197519801985199019952000200520102013

3 History of defense specification establishment

Adoption of US Air Force quality control methods with domestic production of T-34Introduction of MIL specs in US-Japan government agreement with domestic production of F-86F and T-33A

DSP Z 9001 to 9003 (based on MIL-Q-9858, MIL-I-45208, etc.)

DSP Z 9008

DSP Z 9005,6 (mini DSP) (cancelled in 2004)

Air SDF established specifications based on MIL-Q-5923C

Ground, Maritime, and Air SDF established their own specifications

DSP Z 9007 (new mini DSP)

ISO 9001JIS Z 9901 to 9903

IAQS 9100JIS Q 9100:2000

JIS Q 9100:2009IAQG 9100

JIS Q 9001:2000

Requests specifications for quality control, etc. unified in DSP Z 9008(from April 2013) ９

JIS Q 9100:2004DSP Z 9000


4 History of DSP Z 9008 establishment (May 2010)◇Problems with DSP Z 9001 to 9003 ・Old: Established in 1982 (MIL -Q-9858 already cancelled) ・Complex: Companies have 3 choices in 3 quality request levels

◇Trend for adopting international standards ・Increase in certified companies （JIS Q 9001: approx. 40,000 companies, 9100: approx. 230 companies)・Defense field added from JIS Q 9100: 2009・Cease concurrent use with other DSP, respecting JIS standards and eliminating choices・Simplify complex form

◇Establishment of DSP Z 9008 (benefits) ・Increase international standard adoption

Secure fairness and achieve requests in line with general competitive bidding system・Reduce related standards and simplify requirements

Reduce burden on both customers and suppliers １０

5 Relationship between DSP Z 9008 JIS (image)


１１-1

DSP Z 9001DSP Z 9002DSP Z 9003




ISO 9001

１１-2




ISO 9001

DSP Z 9005DSP Z 9006

１１-3




ISO 9001


JIS Q 9001（2000）

１１-4




ISO 9001


DSP Z 9007

JIS Q 9001（2000）

１１-5




ISO 9001


DSP Z 9007

JIS Q 9001（2000）

JIS Q 9100（2000）

１１-6




ISO 9001


DSP Z 9000

DSP Z 9007

JIS Q 9001（2000）

JIS Q 9100（2000）

１１-7




ISO 9001

JIS Q 9100（2009）


DSP Z 9000

DSP Z 9007

JIS Q 9001（2000）

JIS Q 9100（2000）

１１-8




ISO 9001

JIS Q 9100（2009）DSP Z 9008

+Additional requirements


DSP Z 9000

DSP Z 9007

JIS Q 9001（2000）

JIS Q 9100（2000）

１１-9


6 Selection of requirements by DSP Z 9000

JIS Q 9001

Items related

to material review

++orDSP Z 9001 DSP Z 9007 JIS Q 9100or

JIS Q 9001

Items related

to material review

++or

Items related to quality control

DSP Z 9002 DSP Z 9007 JIS Q 9100or

JIS Q 9001 +orDSP Z 9003 DSP Z 9007 JIS Q 9100or

Items related to inspection system

DSP Z 9000Quality control

application specifications

Request necessary items (defined in

individual specification)

9 classifications １２

Items related to quality assurance


7 Features of DSP Z 9008 (classified by equipment)Classification a

(aircraft, missiles, etc.)

Classification b (tanks, ships, firearms, etc.)

Classification c (vehicles, ship engines, etc.)

JIS Q 9100 + additionalrequirements

JIS Q 9001 + additionalrequirements

JIS Q 9001 – inapplicable items

DSP Z 9008Quality

management etc., common

specifications

Request necessary items (defined in individual specification)

3 classifications

Required functions/perform

ance and safety

１３

8 Status of JIS Q 9100 and other certification accreditation status for Defenserelated companies (March 31, 2012)


１４

Source: Prepared from EPCO yellow paper data

Note : EPCO ---Equipment Procurement and Construction Office

9 Categories of companies certified (March 31, 2012)


１５Source: Prepared from EPCO yellow paper data

Investigated the companies required for Quality evidence review and Inspection

Electrical and optical equipments32%

Machineries, equipments

Chemicals, chemical products, and fiber products 1%

Industries not covered by other categories 2%Rubber and plastic

products 3%Information technologies 3%

Base metal / Machined metal products 3%

Other transport equipments 4%

Aerospace industries

Others8%

Note : EPCO ---Equipment Procurement and Construction Office

1 Maintaining and fostering efforts for aircraft manufacturing / engineering foundation

Future approach

１６

(1) Manufacturing / technical foundation for fighters・Completion F-2 fighter delivery / Fighter manufacturing suspension→Future issues in manufacturing /engineering foundation for fighters

C-2 Cargo Plane / US-2 SAR Amphibious Plane which had disclosure request by private sector

(2) Concepts for future fighters・“R&D visions for future fighters”・ Periodic exchange of opinions between public and private sector

(3) Diversion of aircraft for private sector use・Cooperation review with related government ministries and agencies・Specific system design such as for disclosure of Ministry of Defense technical

materials

Source: 2012 Defense white paper

2 Efforts in acquisition of equipment, etc.

Future approach

(1) Enhanced lifecycle cost controlContribute to effective and efficient equipment acquisition.

(2) Expansion of incentive contract systemPrompt improved productivity of companies and enhancement/advancement of low-cost structures.

(3) Efforts in cost control Control costs by concentrated procurement of parts and joint procurement with other ministries and agencies.

(4) Efforts to improve fairness and transparencyEnhance budgeting check function to prevent reoccurrence of incidents.

(5) Review of central and regional procurement Require minister approval for expensive limited tendering contracts of regional procurement (150 million yen or more).

(6) Study for more efficiency in acquiring equipment・ Acquiring equipment through IPT method・ Cost control structure ・ Introduction of PBL

１７-1Source: 2012 Defense white paper

2 Efforts in acquisition of equipment, etc.

Future approach

(1) Enhanced lifecycle cost controlContribute to effective and efficient equipment acquisition.

(2) Expansion of incentive contract systemPrompt improved productivity of companies and enhancement/advancement of low-cost structures.

(3) Efforts in cost control Control costs by concentrated procurement of parts and joint procurement with other ministries and agencies.

(4) Efforts to improve fairness and transparencyEnhance budgeting check function to prevent reoccurrence of incidents.

(5) Review of central and regional procurement Require minister approval for expensive limited tendering contracts of regional procurement (150 million yen or more).

(6) Study for more efficiency in acquiring equipment・ Acquiring equipment through IPT method・ Cost control structure ・ Introduction of PBL

The Ministry of Defense is aiming to

achieve quality of procured items and reduce costs

Source: 2012 Defense white paper １７-2

3 Compliance is the staring point for achieving quality

ＪＩＳＱ９００１ＩＳＯ９００１

Organization regulations, etc.

Laws, etc.

ComplianceSocial rules (common sense, ethics）

JIS Q 9100

１８

Future approach

Fraudulent aircraft seat inspection

Fraudulent aircraft part inspection

4 Ideal relationship with companies and the Ministry of Defense (image)

Defense Agency Company

CompanyMinistry of Defense

Contract

ContractWin-Win Relationship

Efforts to deal with issues

Introduction of ethics code and compliance

１９

Future approach

Defense Agency CompanyContract

２０

JIS Q 9100 Expansion

Aerospace industry growth

Win-Win Relationship

Don't "Making the Buddha statue body without the soul."(Don't "Ploughing the field and forgetting the seeds.")

Achieving quality of defense equipment

Thank you for your time

２１