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1 The Opportunities and Challenges of Product Lifecycle Management Within the Department of Defense May 15, 2008 By Kevin Borek Department of Defense (OSD) Office of Business Transformation [email protected] 703 681 5929 x145

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Page 1: The Opportunities and Challenges of Product Lifecycle ... · The Opportunities and Challenges of Product Lifecycle Management Within the Department of Defense. May 15, 2008. By Kevin

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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?

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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.