Investing in Army Quality

Mr. James ShieldsProgram Executive Officer Ammunition

Collaboration on Quality in the Space and Defense Industries (CQSDI)

American Society for Quality

8 March 2016

DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

DoD Environment

USD(AT&L) Better Buying Power for Warfighters and Taxpayers

• Deliver Capabilities w/Declining Budgets

• Greater Affordability, Efficiency and Productivity

• Focus Areas:

‐ Achieve Affordable Programs

‐ Achieve Dominant Capabilities While Controlling Lifecycle Costs

‐ Incentivize Productivity in Industry and Government

‐ Incentivize Innovation in Industry and Government

‐ Eliminate Unproductive Processes and Bureaucracy

‐ Promote Effective Competition

‐ Improve Tradecraft in Acquisition

‐ Improve Professionalism of the Total Acquisition Professionalism

GAO/NSIAD-96-162

• Manufacturing and quality problems contributing to cost and schedule overruns

• Quality problems in production due to incomplete weapon designs

• Encourage advanced quality concepts

DoDIG-2015-028

• Quality related problems resulted in major cost overruns, schedule delays and reduced system performance

• Lack of emphasis and attention resulted in quality issues handled late in the acquisition process when cost to correct is greatly increased

• Emphasize Quality throughout the entire acquisition life cycle

DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16 2

Army Acquisition • OASA(ALT) Strategic Goals Include:

‐ Obtain Greater Efficiency and Productivity in Defense Spending

‐ Improve Cycle Time and Reduce Program Risk

‐ Reduce Life Cycle Costs During Sustainment Phase

‐ Improve Army Industrial Base

• ASA(ALT)/AAE: Use the Army Acquisition Lessons Learned Portal (Web-Enabled Database)

• Army Program Executive Officers

‐ Direct Reports to ASA(ALT)/AAE

‐ Mission: Develop, Equip & Sustain for Joint Warfighter Dominance

‐ Life Cycle Managers

‐ Deliver Improved Capabilities

‐ Operate Effectively and Efficiently

‐ Optimize Industrial Base

What’s Quality’s Role in Meeting These Challenges?

3DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Excerpts from Army Quality Program(AR 702-11)

• Quality Roles & Responsibilities– ASA(ALT), CG AMC, etc.

• Quality Management– “ … responsibility, authority, expertise and organizational

freedom …”

• Life Cycle Quality Support– “… identify and assess quality requirements early and

continually…”

• Quality Interface within Systems Engineering Processes

– “… independent and objective assessments ...”

– “… management and integration of quality competencies ...”

• Risk-based Quality Planning– “… giving consideration to the total life-cycle costs of quality.”

• Quality Core Competencies– “Management of a comprehensive quality program requires

subject matter experts.”

• Supplier Quality Management– “ … a paramount consideration during product and service

acquisition.”

Proponent: ASA(ALT)

4DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

SS = f (SD, QP)

RS = f (RD, QP)

PS = f (XD, QP)

LCCS = f (XD, QP)System Field Performance [including Safety (SS) &

Reliability (RS)] and Lifecyle Costs (LCCs) are a Function of the System as Designed (SD, RD … XD) and

the Quality in Production (QP)

Quality Assures Great Designs Become Great Products

Quality and the Acquisition Mission

5DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Army Aviation & Missile Cost of Quality

Case Financial Impact Est Cost to Prevent Price of Lessons Learned

Hydra 70 Rocket $1M $200k $0.8M (5:1 ROI)

M77 Grenade (MLRS) $4M $200k $3.8M (20:1 ROI)

Kiowa T63 Engine $28.5M $100k $28.4M (285:1 ROI)

CH-47D Transmission $60M $275k $59.7M (218:1 ROI)

Patriot Tin Whiskers $150M $400k $149.6M (375:1 ROI)

$1.175M

6DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Abrams Main Battle Tank Quality

• Subject to Numerous Layers of Inspection from Manufacture to Fielding to Sustainment

• Current Focus on Correction, not Prevention

• Limited Visibility and Minimal Consolidation of Quality Data

• End-to-End Quality Reporting Process (QRP)

‐ 2016 Implementation

‐ Integrated w/the Abrams Total Enterprise Asset Management System (Cost, Schedule & Performance)

‐ Captures Program Quality Measures

‐ Facilitates Focus on Lifecycle Quality Costs and identification of Preventative Measures

QRP will Reduce an Estimated $10M Annual Costs Associated with Poor Quality

7DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

M777A2 Howitzer FRACAS

• High Visibility of Field Issues

– Sample Data Collection

– Field Service Representatives

– Product Quality Deficiency Reports

• Failure Reporting, Analysis, and Corrective Action System (FRACAS) Process:

– Addresses all Aspects of the M777A2 Howitzer and provides an Effective System for Tracking and Resolving Issues

– Provides an Effective Monitoring Program used to Identify Issues and Categorize them for Action• Scored based on Safety, Reliability, Life Cycle Cost, Delivery Times,

Demand Rate of Spares, and Maintenance Times

• Action: Redesign, Increased Spares, Publication/Training Change

– Focuses on cost and/or reliability/durability issues• All Changes Must be Cost Effective via the Life Cycle Cost Model

Proactive Tracking via FRACAS has Resulted in $300K in Cost Avoidance and a Potential $700K/year in Savings.

8DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Key Parameter Design for Mortar Precision

• Precipitating Event: 120mm Mortar Malfunction

• LSS Black Belt: Fin Assembly Key Parameter Design Analysis– Fault Tree Analyses

– FMECA’s

– Design of Experiments

– Probabilistic Analyses

– Measurement System Analyses

– Tolerance Analyses

– Ballistic Test Data Modeling and Analysis

• Conclusion: – Malfunction Due to Positioning of Propellant Increments (Not Fin Assembly)

– Greater Understanding of Fin Assembly Design’s Influence on Performance

• Changes in Technical Data– Addition of 2 Key Characteristics (Fin Canting/Straightness)

– Relaxation of Fin-to-Fin Angle Tolerance

– Reduced Inspection Frequency of 10 Other Characteristics

• Benefits: Expand Future Competition, Reduce Future Unit Cost & Improve Aeroballistic Performance

Lesson Learned: Invest In Rigorous Systems Engineering and Design for Lean Six Sigma (DFLSS) to Understand Factors Controlling Performance and Manufacturing Variations

9DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Costing Artillery Precision

• Precision Guidance Kit (PGK)– GPS-Based Trajectory Correcting System for 155mm

Conventional Artillery Munitions

– At 30Km, Improves Precision 25-Fold

• Uncertainty Remains after Traditional Cost Estimating Techniques– Is the Gov’t Paying the Right Price?

• PGK Cleansheeting– Better Understanding Cost from Components to

Final Assembly

– Identify Cost Savings Opportunities

– Similar to Engineering Cost Estimation Method

– Model Material and Non-Material Costs in an Optimized Manufacturing Scenario

• Key Characteristics• Process Capabilities• Process Control

• Acceptance Inspections• Metrology• Supplier Management

10DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Software Quality Engineering Reduces Life Cycle Costs

Goal – Reduce Software Life Cycle Costs by Identifying and Fixing Defects Closer to Phase of Origin

Established Organizational Baselines and Models using Industry-standard Defect Containment Matrix (DCM) Methodology

– Tracked Defect “Phase Leakage” (Finding Defects in Phases after the Originating Phase)

CMMI Level 5 Projects’ Focus:– Optimize Within-phase Verification

Processes (e.g., Peer Review, Unit Testing, etc)

– Leverage Reuse of Mature Code– Increase Automation of Testing

Cost avoidance realized…Less rework late in the life cycle when it is most expensive to repair,

resulting in reduced schedule risk

26.5%

42.8%

30.7%

91.6%

3.7% 4.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Captured within Phase Leakage = 1 Leakage > =2

Defects Phase Containment / Leakage(High Severity Defects - Priority 1, 2 & 3)

ML3

ML5

91% Reduction

85% Reduction

245% Improvement

11DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

Quality & Battlefield AM

• DoD-wide Initiative

• Battlefield/OCONUS Additive Manufacturing (AM)

• CONUS Engineering and Validation Centers

– Databases of 3-D TDPs and Manufacturing & Validation Data

– Connect Soldiers with S&E’s for Rapid Solutions

• Benefits:

– Produce Parts at Point of Need

– Reduce Soldier Exposure & Risk

– Modify Existing Systems

– Create Innovative Fabrications

– Reduce Logistics Footprint

• Quality Challenges:

– Controls for Numerous Mini Manufacturing Plants

– Machine Performance Variability

– Certification Protocols

AM May One Day Fundamentally Transform Battlefield Sustainment

3-D Printed Lower Receiver for M16/AR15 Rifle

12DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16

The Cost of Quality

High

Low

Ability to Influence Quality

Cost to Implement Changes in Quality

TechnologyDevelopment

Engineering & Manufacturing Development

Production & Deployment

Operations & Support

“An ounce of prevention is

worth a pound of cure.”

- Benjamin Franklin

“You can pay me now, or pay me later”

High InfluenceLow Cost

Low InfluenceHigh Cost

Investing in Quality: A PEO Perspective

13DISTRIBUTION A: Approved for Public Release; Distribution Unlimited (24 Feb 2016). PAO Log #210-16