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Wendy Messer, Director General Australian Industry Programs, Defence Materiel Organisation delivered this presentation at the Defence Supply Chains Summit. This Summit focuses on supply chain perspectives from Defence primes, leaders within the DMO, case studies from SMEs, risk and cost mitigation strategies, preparation strategies, and network with an array of Defence stakeholders. Find out more at http://www.admevents.com.au/DSC2013
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Equip and Sustain the Australian Defence Force
Equip and Sustain the Australian Defence Force
Challenges around the world
• Government’s key priorities include:
• responsibly managing the Government’s finances;
• building a more productive and competitive economy;
• delivering better public services within tight fiscal constraints
• Key priorities:
• Addressing affordability issues.
• Maintaining momentum in key relationships.
• Organisational improvements.
Equip and Sustain the Australian Defence Force
DMO
Purpose
The DMO exists to equip and sustain Defence’s materiel capabilities to
meet Australia’s needs in an effective, efficient, economical and safe
manner
Vision
To be recognised and respected as a global leader in Defence materiel
solutions
DMO 2013-15 Strategic Framework
Released in February and defines our purpose, vision, goals, core
functions, values, behaviours, and accountability. Details available on
the DMO website:
www.defence.gov.au/dmo/publications/Strategic_Framework.pdf
Our Vision: To be recognised and respected as a global leader in Defence materiel solutions
Equip and Sustain the Australian Defence Force
Australian Industry Policy
• Defence Industry Policy (2013 White Paper)
– support the growth and competitiveness of Australian businesses
– support a highly skilled and capable Australian defence industry
• Growing the defence sector’s capacity and competitiveness by
continuing investment in three key areas:
• enhancing innovation,
• building competitiveness, and
• developing skills
Equip and Sustain the Australian Defence Force
Australian Industry Programs
• Enhancing Innovation including:
– the Defence Future Capability Technology Centre,
– Priority Industry Capability Programs,
– Capability Technology Demonstrator Program
– Rapid Prototyping, Development and Evaluation Program
• Building Competitiveness through:
– AMSO
– Global Supply Chain Program
– Export support and Team Defence Australia exhibitions
– Defence Industry Innovation Centre
– Australian Industry Capability Program
Equip and Sustain the Australian Defence Force
Australian Industry Programs (cont)
• Developing Skills
– Skilling Australia’s Defence Industry Program
– School Pathways Programs
– Internships and undergraduate traineeships
– Sponsorship of Re-Engineering Australia (REA) Foundation
– Master of Systems Support Engineering and Doctorate in Systems
Engineering
• Defence Industry Relationship through ongoing mechanisms:
– DMO Business Access Offices
– Defence+Industry ePortal
Equip and Sustain the Australian Defence Force
Australian Military Sales Office
• Facilitates export-related transactions and major disposals activities,
including Government-to-Government (G-to-G) sales for Australian
produced military equipment and services.
• Supports Defence, the Australian Government and the Australian
Defence Industry by:
– increasing industry sales and export opportunities
– initiating and managing Government to Government sales
– improving Australia’s domestic capabilities in the Defence sector
– strengthening Australia’s alliance with other countries through a
program of export facilitation and disposals activity.
• Provides advice and answers questions in relation to Australia’s
defence industry and a company’s capabilities/service if the company
has a contract with Defence.
Equip and Sustain the Australian Defence Force
Australian Industry Capability Program
• Maximise opportunities for Australian industry to address the
capability needs of the ADF on a best value basis by:
– leveraging major Defence projects to create opportunities for
Australian defence industry;
– influencing foreign prime contractors and OEMs, including
Australian based subsidiaries, to ensure cost-effective delivery of
acquisitions and maintenance, and encourage investment in
Australia; and
– make technology transfer an attractive proposition for large foreign
original equipment manufacturers.
Equip and Sustain the Australian Defence Force
Defence+Industry ePortal
• The D+I ePortal provides:
– industry with a way to access a range of Defence information
including opportunities for companies, including SMEs, to
participate in Defence acquisition and sustainment programs.
– comprehensive and authoritative company-supplied information
on Australian industry capability for Defence and other potential
customers.
• Benefits of registering with DMO
– Registered users, when logged into the D+I ePortal, have access
to a number of reports that provide data about company capability.
– A registered user can request affiliation to a company and/or start
registering their own company on the site.
Equip and Sustain the Australian Defence Force
Business Access Offices
• Provide a local interface for industry, particularly small to medium
enterprises to engage with Defence
• Provide updates for Defence Industry
• Maintain strong working relationships with State and Territory
Governments
• Assist companies to build networks with other suppliers to Defence
• Identify and refer potential new products to relevant teams within
Defence
• Work with local, state government and industry associations to bring
you up-to-date information and presentations on issues of interest to
Defence Industry
• Manage industry assistance programs including the Letter of
Recognised Supply.
Equip and Sustain the Australian Defence Force
Global Supply Chain
• Launched 1 July 2009 in Defence White Paper
• Aims to create opportunities for Australian industry in the global
supply chains of multinational defence companies and their major
subcontractors.
– Offices or units within the overseas prime contractor or its
Australian subsidiary are created.
– These offices work with capable Australian companies to
provide with contract opportunities that are internationally
competed
Equip and Sustain the Australian Defence Force
Global Supply Chain
• Launched 1 July 2009 in Defence White Paper
• Current participants
– Boeing
– Raytheon
– Thales
– Northrop Grumman
– Lockheed Martin
– BAE Systems
– Finmeccanica
Equip and Sustain the Australian Defence Force
Global Supply Chain Lessons
• SMEs can be ‘Defence-ready’ and improve their capacity to participate in the global market by:
– Ensuring they have:
• current information on the goods and services they can deliver including cost estimates and pricing structures
• long term business and investment plans which are well based, current and executable
– Demonstrating:
• strong control systems both for manufacture and delivery as well as for finance and personnel aspects of business
• effective management of their own supply chains
• continuous improvement methodologies
– Understanding the business and requirements of the major contractors with whom they would like to work
– Developing their ability to team with other suppliers to deliver requirements
Equip and Sustain the Australian Defence Force
Let our customers do the talking
“The GSC program has greatly assisted us to transition from the
Australian market to supplying global prime contractors.
The GSC program has also assisted us with guidance and training to
present ourselves in the most positive way to overseas companies.”
Mark Pezaro Business Development Manager Micreo Limited
“We are more than happy for you to note Aerosafe’s support for the GSC
program. Whilst it is still early days for our involvement, we do consider
that there is significant potential for a company like ours.”
Brett Worsley - Aerosafe Risk Management
Equip and Sustain the Australian Defence Force
Questions?
Director General
Australian Industry Programs
Defence Industry Division
DMO
Wendy Messer