This applies where the following exist:

-Uninterrupted serial production (no production breaks)

-Consistent Product Design

-Management emphasis on productivity improvment

-Manufacturing methods and processes

-Item Complexity

-Workforce stability

-Productions breaks

-Design

-Manufacturing Capability and Control

-Inspection Methods

-CAIV

-Insufficient design margines resulting from poor design practice

-Inherent variablity of any manufacturing process

-Measurement systems all possess inherent variabilty

-Varibility Products provided by the subcontractors and vendors

-Stable, realistic reqts

-Design process that includes Producibility

-Use of proven, mature manufacturing processes

-use of Statistic tools, such as design experiments, SPC and analysis of variance

-Establish capable processes

-Continously improve processes

-Monitor and Control critical process and product variation

-Establish mechanisms for field product perofrmance  (Feedback)

-Implement an effective root cause analysis and corrective action

What kind of funding?

Prepare annual budget request on the basis of funding needed to operate and maintain DOD activities and pay personnel on a 12 month period

What kind of funding?

To provide only those funds required to pay expenses associated with normal operations for a 12 month period.

What kind of funding?

Funds for a given year may be obligated for the total amount of that contract

What type of funding?

RDT&E (expenses and investments)

What kind of funding?

Govt will pay for work performed that fiscal year with that fiscal year's appropriated funds?

What kind of funding?

Intent is to achieve effective rationing of scarce funds among RDT&E programs

What kind of funding:

Procurement, MILCON

What kind of funding:

Prepare an annual budget request to cover total estimated cost for a specific quanity of militarily usable end items deliveries in a 12 month funded delivery period

What kind of funding?

Intent is to provide total funding for investment items to satisfy an approved 12 month requirement

What kind of funding?

• Prepares annual budget request on the basis of funding need to operate and maintain DOD activities and pay personnel for a 12 month period
• To provide only those funds required to pay expenses associated with normal operations of a 12 month period

What kind of funding?

• Prepare annual budget request on basis of incremental funding reuqired to cover only those costs expected to be incurred for work to be done during a given fiscal year
• Government  will pay work perofrmed that fiscal year with that year's appropriated funds
• Intent is to achieve effective rationing of scarce funds among RDT&E programs

What kind of funding?

• Prepare annual budget request to cover the total estimated cost for a specific quantity of militarily usuable end items deliveries in a 12 month funded delivery period
• Intent to provide total funding for investment items to satisfy an approved 12 month requirement

What color of money?

• LRIP:  Permit orderly increase in production ramp up

What color of money?

LRIP: Establish an initial production base

What color of money?

LRIP: Provide production configured or representative articles for OT

-One that increases performance

-One that does not increase perforamnce

Activities to be funded:

Determine how to do the modifications

Activities to be funded:

Purchase the modification

Activities to be funded:

Install the modfication kids

-Congressional Prior Approval

-Congressional Notification

-Internal

-Below Threshold Reprogramming

• Change to drawings design or specification
• Method of shipping or packaging
• Place of delivery

• Must be kept in the same phases (Authorization or Appropriation)
• Can only be made for the amount in or closes to President's Budget
• You can appeal more than just dollars (Manpower, quantities, policy language)

-Monitor

-Reduce

-Measure

-Implement

What are these key factors:

• There is a specific managment buy-in
• A willingness to trust exists on both sides
• Honesty is evident
• The Team is empowered

• Worker familiarization with required tasks
• Process improvements resulting from experience with tasks
• More efficient layout assembly line
• Simplification of methods sheets, reduction of rework, repair and scrap
• Improved parts bin assembly
• New improved tooling

• Principles of concurrent and integratred rather than serial processing in a sole source environment to reduce acquisition time.
• From solicitation development through proprosal prep, evaluation, negotiation and award
• Relies on team approach to concurrently develop scope of work, price the scope, and prepare the contract to execute the scope
• Streamling technique where the team must agree before proceeding to the next stage

- Parts Obsolescence

- Supply Chain, Industrial Base

- Design Flexibility

- New Production Line

- Variation in Key Characteristics

- Implementing Lean Manf & QMS

• substantial savings—debatable, contractor estimated $50M (2.8%) gov’t savings 
• minimum needed will remain unchanged 
• agency will request funding
• stable design, low risk
• costs are realistic—debatable, BMPCOE estimates $75M net (compared to $150M)
• will promote the national security

•Use tailored cross-functional teams

•Use DCMA, BMPCOE and DAU resources

•Manage the supply chain

•Lean principles

•Design in quality

•Provide performance incentives for innovation, open systems architectures

•Require contractor to manage supply chain (PBL approach)

•Consider component breakout

 This is applicable for what?

This prevents the following:

nCombat related loss of life and/or

nMission failure

• Highest
• Submitted through USD (C) to Congress
• Change in quantities
• Special Interest Items
• New Starts
• Can move between appropriaitions
• Exceeds dollar of BTR

• Next Higher Level
• In advance of initiation
• Requires a 30 day notification to the Defense Committee with no action taken until 30 days after notification
• Exceeds dollar of BTR threshold

• Realigns appropriated funds (usually to a different line item or appropriation) for proper execution of the same requirement with no change in purpose.
• Requires OSD involvement

This is the method for Internal Reprogramming:

Movement of funds from one service to another (can change appropriation)

• Based on dollar figures and appropriations
• RDT&E:  $10M or less
• Procure: $20M or less
• OM&N: $15M or less

Not using the funds for a program and purposes which the approrpriation is made

Example: Using OM&N when you should use RDT&E

Based on the type of funds; how long they are good for;

• O&MN = 1 year
• RDT&E = 2 years
• SCN = 5 years

 •Features whose variability has the greatest impact on fit, performance, or service life.

Reducing losses and eliminating waste

–Monitor, measure, analyze, control, and improve processes

–Reduce product variation

–Measure/verifyproduct conformity

–Establish mechanisms for field product performance and feedback

–Implement an effective root-cause analysis and corrective action system.”

 •What does it do?

–Focuses attention on detecting and monitoringprocess variation over time

–Distinguishes special from common causes of variation, as a guide to local or management action

–Provides a common language for discussing process performance

 •What is it?

1.  Design

2.  Manufacturing Capability and Control

3.  Inspection Method

4.  CAIV

• Simplicity of design
• Standardized materials and components
• Process repeatabilty
• Product inspectabiltiy
• Environmental
• Use of Open Systems
• Use Commerically available components

1. Total Part Count

2. Skill levels required to manufacture

3. Special test systems

4. Inappropriate tolerances

• Machine vibration, vibration, temperature fluctation, raw material variations, human variation in setting control dials
• if only these are present, the outpout of the process forms a distribution that is stable over time and is predictable
• Need management to resolve

• Anything that causes variations that are not part of the stable process
• assignable cause or unnatural cause, batch of defective material, bad set up, human error, incorrect recipe, blown gasket, earthquake
• If these are present, the process output is unstable over time and unpredictable
• Resolved by local workers

____ repeats the process

____ produces product to spec