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The Opportunities and Challenges of Product Lifecycle Management Within the Department of Defense
May 15, 2008
By Kevin BorekDepartment of Defense (OSD)
Office of Business Transformation
[email protected] 681 5929 x145
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The Mission
• DoD, at its root, is a service fulfillment organization, built upon a complex mix of engineered products, interrelated systems and relationships
• DoD isn’t a manufacturer, but configures, maintains and remanufactures products within its inventory
• Organizational emphasis is on mission vs. financial efficiency, but cost obviously matters
The Department of Defense is chartered with maintaining a state of military “readiness” – the ability to mobilize and employ resources at a moments notice – in response to emergency or national crisis anywhere around the globe – on demand.
Goal: Defense of the Nation at “Best Cost”
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A Complex Organization
The DoD is arguably the most complex enterprise in the world:
• Annual budget over $700B• DLA spend alone over $70B annually, just in hard consumables!• A very old enterprise, with many legacy processes• Roughly 1.5M military service members, millions more in supporting
roles• Complex mix of weapons systems, supporting tools and equipment• Extremely long asset lifecycle / high degree of technological
dependence• Complex organizational relationships and geographic separation
• All operating within in a Federated Bureaucracy under the direction of 500 CEOs in Washington!
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With a Legacy Product Data Management Environment
• Legacy DoD Environment:– Product data management solutions are generally loosely
confederated - an artifact of older business processes and data formats
– Problem:– Many discrete/decoupled legacy business applications– Mix of legacy government formats and modern model data– Legacy data is generally not linked with the associated product
structure– Model data is treated as an engineering (not an enterprise) asset
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Weapons systems are more dependent than ever upon commercially driven technologies and supporting business processes – and so are competitors
• Geographically and organizationally diverse sources of supply• Sophisticated underlying technologies• Complex, interdependent organizations & development
techniques• Rapid technology assimilation & shorter product half-lives• And….very product data-centric
Synthesis is the new competitive competency
What needs to be done?
The Challenge
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One Part of the Solution: Invest in PLM
Product Lifecycle Management (PLM) is an evolving set of business principles, organizational constructs and information management systems used in the governance of modern, technically complex and globally distributed assets.
PLM is more about how an organization manages it’s people, processes and products than any specific technology investment. It’s about how product information is managed across organizational boundaries and how people interact with this information throughout a product’s lifecycle.
As a business management technique, PLM is product (item) vs. organizationally-centric and emphasizes intellectual property management and protection across organizational boundaries in collaborative, arms-reach business engagements.
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• DoD adoption of PLM principles and alignment with the Industry PLM/ERP Value Chain will yield:
• A faster technical response to evolving threats• Lower-risk, more cost-effective supplier relationships• Better integration with supply chain partners• Lower inventory carrying costs• Fewer “work-around” contracting and support strategies • More efficient legacy product sustainment
• And lifecycle product data management is a critical component of PLM/ERP transformation efforts
• Provides single source of authoritative product data• Facilitates enterprise linkages and communication• Standardizes data management and exchange processes
Why Emphasize PLM & Product Data?
8Common: Business Rules, User Authentication, Authoritative Sources, Data Views, Bills of Material, ECP/ECN Workflows
Data Emphasis: Piece Part Requirements. (DLA/ICP)
Data Emphasis: Engineering Design (Contractor/DoD PMO)
Data Emphasis: Manufacturing Processes (Contractor/Depots)
Data Emphasis: Maintenance Functions (MRO/Field Support)
Representative Tech. Data:Internal SpecificationsQualification Data/ReportsVendor Data Sheets/SpecsMSDS/Environmentals
Representative Tech. Data:3D CAD Models / 2D DrawingsSimulation & Reliability DataSchematicsSpecifications & DocumentationEngineering Parts ListsSoftware/Firmware
Representative Tech. Data:Assembly DocumentationTest ProceduresRoutersTooling Drawings and Specs.Test ReportsManufacturing Materials Info/MSDS
Representative Tech. Data:Technical Manuals/Operation Docs.IETMS/ProceduresPerformance Data/ReportsTraining DocumentsConfiguration RecordsMaintenance Records
Assoc. Business ProcessesConsumables ReprocurementForecastsInventory Mgmt/ControlCost Analysis/ImprovementVendor Analysis
Assoc. Business Processes:Design / NPI / AcquisitionEngineering AnalysisEngineering Change Mgmt.Configuration Mgmt.Failure Mode AnalysisReliability StudiesCost/Performance Studies
Assoc. Business Processes:Production ManagementMfg. Process DevelopmentInventory Mgmt. & ControlQuality Control/ImprovementsForecastingEngineering Change Mgmt.Cost Improvement
Assoc. Business Processes:Maintenance ProcessesConfiguration ManagementReliability StudiesInventory Management/ControlForecastingTraining
Source Info.
Enterprise Catalog (FLIS)
Sourcing data: Acme, United, Federated, etc.
Variant Info.
Specific information about variant
General Spec.
General information about item
Filter XXX
XXX-1
Variant 3
Structured Product Information
Variant 2As-Designed
Product A
Variant 3Variant 2
As-Manufactured
Variant 3Variant 2
As-Maintained
•Vehicle–Engine
•Block•Carb•Filter XXX-1
•Vehicle–Engine
•Block•Carb
–Glue•Filter XXX-1
•Vehicle–Engine
•Filter XXX-1
DoD Product Data Requirements(just like Industry!)
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The primary objective is to establish a single-source of authoritative product data through the product life cycle
DoD PLM Data Vision
Requirement Planning
ProductConcept
ProductDefinition
Product Development
Product Introduction
ProductSupport
Disposal andRecycling
Lifecycle
Engineering Provisioning Supply ChainManagement
Advanced Planningand Scheduling
Maintenance / Repairand Overhaul
Integrated Change Control Process
Revision-Controlled Weapon System Documentation
Engineering DrawingsSystem SpecificationsTechnical OrdersProduct Support Documentation
Parts and Items DataDeficiency ReportsMaintenance PlansSafety Data
Operational RequirementsAcquisition Documentation Air Worthiness DocumentationOSS&E Documentation
Original Source: PTC
A B C
Pre-Systems Acquisition Systems Acquisition Sustainment
ConceptRefinement
TechnologyDevelopment
Systems Development And Demonstration
Production and Deployment Operations & SupportSystems Integration
Full Rate Sustainment Disposal
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DoD PLM Deployment Challenges
Alignment with industrial “model – based” product data management initiatives is obviously desirable:
• Common data repositories & linkages to enterprise management systems• Global product data standards & exchange formats (DoD and external)• Contract terms, data rights• Roles, responsibilities and rules of engagement
However, there are some DoD-unique challenges which must be considered:
• Law, Policy & Instruction• “Enterprise” definition• Complex weapons lifecycles & legacy data management practices
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Law, Policy and Instruction
DoD operations decisions are intimately linked to Law, Policy and Instruction:
• US Code: Title 10 Armed Forces• DoD 5000.1 Defense Acquisition System• DoD 5000.2 Operation of the Defense Acquisition System
• DoD 5010.12-M Procedures for the Acquisition and Management of Technical Data
• FARs – Federal Acquisition Regulation, Defense and Component Supplements
• Congressional Depot Caucus: 50/50 rules
…and many others, not always in agreement and with some unintentional outcomes
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Influence of Law & Policy
Law & Policy influence DoD PLM implementation:• Asset ownership / management responsibility• Systems acquisition contract rules• Data rights & delivery• Government-specific data formats (LSA, forms, 2D, etc)• Congressionally driven maintenance & support requirements• Service assignments / staff rotations
This mix of guidance has had some unintended consequences!Acquisition programs are generally uniquely managedPM’s emphasize systems performance over sustainment Funding emphasizes hardware over data rights/managementLimited focus on enterprise-level PLM strategy post-acquisition
Bottom line: Many DoD business processes currently don’t support the migration to “commercial” model/simulation – based product management
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The Product Data Pyramid
Top Level
Ships, Planes, Spacecraft, Vehicles, etc
Systems Integrator
Radar, ECMs, Weapons, Hydraulics, Propulsion, Transmissions, Control Systems, etc.
Subsystems Suppliers
Radomes, Displays, Electronics (box/boards), Gears, Fans, Power Supplies, Antennas, etc.
Component Piece Part Suppliers
Contracting Agency
Tier 1 (Prime)
Feeder Materials
Component Specifications, BOMs, Detail Dwgs., Models, Simulation Data, Vendor Data, Reliability, Test and Quality Data
Outline Dwgs, Tech. Spec., Installation Manual/Dwgs, Training Documentation, High-Level Boms, Reliability, Test and Quality Data, etc.
Available Product Data
Outline Drawings, Detailed Drawings, Systems Specifications, Systems Engineering Data, Systems Software, BOMs, Schematics, Subsystems Specifications, Interface Dwgs, Subsystems Documentation, Software Interface Specs, Models, Simulation Data, Component Piece Parts, Reliability Test and Quality Data, etc.
Subsystems Specifications / BOMs, Outline Dwgs, Subsystem Interface Specs, Subsystem SW/Firmware, Schematics, Mechanical Models/Detail Dwgs, Simulations, Component Piece Parts, Mfg / Test, Reliability Test and Quality Data
Tier 2 (Sub)
Tier 3/4/5
Electronic Components, Paints, Coatings, Adhesives, Metals, etc.
Problem: Generally -•Limited data rights between suppliers•Few data interchange formats•Limited electronic media at lower tier•Paper is still source at lower tiers
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Product Data RequirementsProduct data requirements are determined by business process
Often, data needed for weapons support is buried within the contract pyramid!
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The DoD PLM “Enterprise”
Evolving missions, technologies and threats are driving greater demand for joint Service engagement and improved process efficiencies
But, how does one define a PLM-serviced “Enterprise” within DoD?• By Service Component – like a corporate division?• By product vertical (aircraft, ground vehicles, turbines, etc?)• By support organization (DLA, AMC, ALC, Depot, etc.?)• By geographic region?• All of DoD – like a corporation?• Include supply chain partners? What about foreign Gov. partners?
• Fortunately, the product data management enterprise is somewhat independent of the service fulfillment enterprise, allowing for some flexibility.
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DoD Product Data Enterprise ViewProduct Data is Both Generated and Consumed Over Lifecycle
Modeling and simulation filesSpecifications
Drawings and CAD output filesSoftware (firmware/hardware)
SchematicsBills of Material
Serialized configurationsOperating instructions
Maintenance instructionsWork instructions
Documents
Enterprise Data
OperationsFunctions
F/A Reliability
MaintenanceFunctions
Supply ChainFunctions
Acquisition
Information exchange requirements define the product data enterprise
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A Complex LifecycleAverage life-expectancies of complex weapons systems are easily 15 years plus. In some cases (aircraft, vehicles) it isn’t uncommon for assets to be 25 or 30 years old, with all attendant problems.
PLM Challenges:• New and old inventory with mixed data, maintenance and deployment
strategies• Configurations to support mission-specific tasks• Geographic separation• Ownership of data management responsibility “shifts” with asset age• New inventory product data management• Remanufactured product data management• Need to support rapid technology insertion
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New Products……..
DoDRequirementsDev. Contract
Conceptand
Assessment(SDD)
Demonstrationand
Manufacture(LRIP/FRP) In Service
and Disposal
Feedback
As ManufacturedConfiguration
As PlannedConfiguration
As DesignedConfiguration
Feedback
As MaintainedConfiguration
Need to maintain alignment between product revisions & configurations over long periods
Supply Chain Pyramid
DoDPrime Contractor
Many Impacts on Systems Availability
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Eventually Become…Legacy Products!
DoDRequirements
As OriginallyDesigned
AsRe-manufactured
In Serviceand
Disposal
Feedback
As ManufacturedConfiguration
As PlannedConfiguration
As DesignedConfiguration
Feedback
As MaintainedConfiguration
Existing product inventory:•New & legacy data availability & formats•Configuration availability/accuracy•Information in many different places
Prime DoD
Supply chain “pyramid” direct-to-DoD sales
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With Government Unique Data Formats
Drawings only – no 3DLoss of configuration
with OEM
OEM
ECPDesign changemade in 3D CAD
PLM
Design configurationcontrolled withinPDM
2D CAD drawingsdeveloped
Drawing BOMstructurecreated manually
PDF filesgenerated
Drawings &BOM copied to CD’s
E-mail/FTP/Snail mail
Technicianmanually loadsdata into PLM
Create product structure
Fill in metadataLoad drawingsValidate load
Need to adopt modern design and mfg. data requirements in CDRLs
As‐designedconfiguration
PLM
Even with PLM, modern OEM design techniques…
…can lead to stranded legacy DoD data!
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Data Federation?. Could be Complex!Requires coordination between multiple suppliers, Primes, Subs & DoD & established PLM/PDM infrastructure
Source: TARDEC
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And New & Old Need to Co-habitate:Hybrid Data Management Model
OEM
ModeledDesigns
OEM PLM
Design configurationcontrolled withinPLM
Old 2D CAD
Technicianmanually loads legacy productdata into PLM
DoD PLM
Create product structure
Fill in metadata
Load drawingsValidate load
Old Docs
Old Config. Records
Design ModularityFederated Data Exch.Contract-Driven Datastandards
Digital “Paper”
Legacy Products
New Products
Model-driven data management
Modern OEM Design/Data Mgmt. Techniques
Legacy Design/Data Mgmt. Techniques
Hybrid data management
solution
Combined Products
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Conclusion: PLM is a DoD Priority!
DoD PLM investment is an organizational priority• Ever-more complex development & support environment• Rapidly evolving technologies and threats• Higher dependence upon fast-moving commercial technologies
For DoD - No “Silver Bullets”• “Standards” have a place, but are only part of the solution• Organizational vs. purely technological challenge• A little strategy and a lot of organizational coordination, blocking, and tackling• Teamwork and extended enterprise focus is key• Treating suppliers as an extension of the DoD enterprise is important• PLM needs to be linked to ERP deployments and other tool investments• Data rights, management, and obligations need to be clearly understood
DoD (AT&L) has embarked on a multi-year effort to address these challenges
Think like an extended enterprise!
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DoD AT&L PLM Initiative• A multi-year AT&L-sponsored program to modernize the business
processes associated with DoD Product Lifecycle Management.
Including:
• Evaluate the strengths and weaknesses of current DoD processes.
• Identify the best commercial data management strategies/practices.
• Establish/Manage a comprehensive program for process modernization across the Department in conjunction with Component and Support organizational leadership.
• Measure outcomes from improvements in technology insertion, organizational business processes, and increased efficiencies within the Acquisition, Procurement, and Logistics enterprises.