1. What are MRLs ? Alfred W. Clark Dawnbreaker, Inc

2. Objective Provide an overview of Manufacturing Readiness Levels [MRLs]. The importance of trying to be accurate when describing your MRL will be discussed and the availability of different self- assessment tools will be introduced.

3. Agenda What are Manufacturing Technology Readiness Levels (MRLs) Relationship Between MRLs and TRLs TRLs & MRLs importance to SBIR Phase III Mature Technology Manufacturing Capability Capable Supplier Risk Mgmt/ Business Planning Keys to Transition Success

4. 4 Why consider MRL Risk Mitigation – Increase Transition success by considering Manufacturing management risks Mature Technology Manufacturing Capability Capable Supplier Risk Mgmt/ Business Planning

5. Manufacturing Strategies Required Investment, potential risk & skill levels Process Scaling Skills Mfg Skill & Expertise Equipment Capital Investment Sales & Distribution Manufacture “In-House” High Manufacture & Assemble MedHighMedHigh Manufacture Outsource Low High License Low Source: Claire Asmail, Senior Technical Advisor NIST MEP, DoD Phase II and Beyond Conference, September 12-15, 2011

6. TRLs, MRLs and DHS Product Realization Analysis of the engineering and manufacturing plan. Results and follow up actions. Analysis of the engineering and manufacturing plan. Results and follow up actions. Development Phase review meeting. Comprehensive analysis of the engineering and manufacturing plan. Results and follow up actions. Corporate review of the manufacturing release package. Pilot Phase review meeting. Results and follow up actions. Analysis and review of the manufacturing plan. Results and follow up actions. MRL 4MRL 5MRL 6MRL 7- 8MRL 9

7. 7 Manufacturing Readiness Levels (MRLs) Manufacturing Readiness Levels (MRLs) and assessments of manufacturing readiness have been designed to manage manufacturing risk in acquisition while increasing the ability of the technology development projects to transition new technology to weapon system applications. MRL definitions create a measurement scale and vocabulary for assessing and discussing manufacturing maturity and risk. Using the MRL definitions, an assessment of manufacturing readiness is a structured evaluation of a technology, component, manufacturing process, weapon system or subsystem. It is performed to: – Define current level of manufacturing maturity – Identify maturity shortfalls and associated costs and risks – Provide the basis for manufacturing maturation and risk management There are ten MRLs (numbered 1 through 10) that are correlated to the nine TRLs in use. The final level (MRL 10) measures aspects of lean practices and continuous improvement for systems in production.

8. 8 MRL 1-5: Manufacturing Planning LevelDefinitionDescription MRL 1 Basic Manufacturing Implications Identified. This is the lowest level of manufacturing readiness. Basic research expands scientific principles that may have manufacturing implications. The focus is on a high level assessment of manufacturing opportunities. The research is unfettered. MRL 2 Manufacturing Concepts Identified Invention begins. Manufacturing science and/or concept described in application context. Identification of material and process approaches are limited to paper studies and analysis. Initial manufacturing feasibility and issues are emerging. MRL 3 Manufacturing Proof of Concept Developed Conduct analytical or laboratory experiments to validate paper studies. Experimental hardware or processes have been created, but are not yet integrated or representative. Materials and/or processes have been characterized for manufacturability and availability but further evaluation and demonstration is required. MRL 4 Capability to produce the technology in a Laboratory environment. Required investments, such as manufacturing technology development identified. Processes to ensure manufacturability, producibility and quality are in place and are sufficient to produce technology demonstrators. Manufacturing risks identified for prototype build. Manufacturing cost drivers identified. Producibility assessments of design concepts have been completed. Key design performance parameters identified. Special needs identified for tooling, facilities, material handling and skills. MRL 5 Capability to produce prototype components in a production relevant environment. Mfg strategy refined and integrated with Risk Mgt Plan. Identification of enabling/critical technologies and components is complete. Prototype materials, tooling and test equipment, as well as personnel skills have been demonstrated on components in a production relevant environment, but many manufacturing processes and procedures are still in development. Manufacturing technology development efforts initiated or ongoing. Producibility assessments of key technologies and components ongoing. Cost model based upon detailed end-to-end value stream map.

9. 9 MRL 6-8: LRIP LevelDefinitionDescription MRL 6 Capability to produce a prototype system or subsystem in a production relevant environment. Initial mfg approach developed. Majority of manufacturing processes have been defined and characterized, but there are still significant engineering/design changes. Preliminary design of critical components completed. Producibility assessments of key technologies complete. Prototype materials, tooling and test equipment, as well as personnel skills have been demonstrated on subsystems/ systems in a production relevant environment. Detailed cost analysis include design trades. Cost targets allocated. Producibility considerations shape system development plans. Long lead and key supply chain elements identified. Industrial Capabilities Assessment (ICA) for MS B completed. MRL 7 Capability to produce systems, subsystems or components in a production representative environment. Detailed design is underway. Material specifications are approved. Materials available to meet planned pilot line build schedule. Manufacturing processes and procedures demonstrated in a production representative environment. Detailed producibility trade studies and risk assessments underway. Cost models updated with detailed designs, rolled up to system level and tracked against targets. Unit cost reduction efforts underway. Supply chain and supplier QA assessed. Long lead procurement plans in place. Production tooling and test equipment design & development initiated. MRL 8 Pilot line capability demonstrated. Ready to begin low rate production. Detailed system design essentially complete and sufficiently stable to enter low rate production. All materials are available to meet planned low rate production schedule. Manufacturing and quality processes and procedures proven in a pilot line environment, under control and ready for low rate production. Known producibility risks pose no significant risk for low rate production. Engineering cost model driven by detailed design and validated. Supply chain established and stable. ICA for MS C completed.

10. 10 MRL 9-10: FRP LevelDefinitionDescription MRL 9 Low Rate Production demonstrated. Capability in place to begin Full Rate Production. Major system design features are stable and proven in test and evaluation. Materials are available to meet planned rate production schedules. Manufacturing processes and procedures are established and controlled to three-sigma or some other appropriate quality level to meet design key characteristic tolerances in a low rate production environment. Production risk monitoring ongoing. LRIP cost goals met, learning curve validated. Actual cost model developed for FRP environment, with impact of Continuous improvement. MRL 10 Full Rate Production demonstrated and lean production practices in place. This is the highest level of production readiness. Engineering/design changes are few and generally limited to quality and cost improvements. System, components or items are in rate production and meet all engineering, performance, quality and reliability requirements. All materials, manufacturing processes and procedures, inspection and test equipment are in production and controlled to six-sigma or some other appropriate quality level. FRP unit cost meets goal, funding sufficient for production at required rates. Lean practices well established and continuous process improvements ongoing.

11. DHS MRL Assessment Resource http://www.homelandsecurity.org/hsireports/ DHS_ST_RL_Calculator_report20091020.pd f http://www.homelandsecurity.org/hsireports/DHS%20RL%2 0Calculator%20for%20Excel%202007%201.1.xlsm DHS RL Calculator for Excel 2003 1.1.xls http://www.homelandsecurity.org/hsireports/ DHS%20RL%20Calculator%20for%20Excel %202003%201.1.xls

12. 12 Additional References DHS Science & Technology Directorate Commercialization Office Resources – http://www.dhs.gov/files/programs/gc_1234200779149.shtm DoD TRL Calculator – https://acc.dau.mil/CommunityBrowser.aspx?id=25811 DoD MRL Deskbook – http://www.dodmrl.com/MRL_Deskbook_V2.pdf DoD Risk Management Guidebook – https://acc.dau.mil/CommunityBrowser.aspx?id=108201 https://acc.dau.mil/CommunityBrowser.aspx?id=108201

13. 13 SBIR’s Relationship to TRLs & MRLs Phase IPhase II Phase III TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 Technology Readiness Levels Higher Risk Lower Maturity Lower Fitness Higher Risk Lower Maturity Lower Fitness Lower Risk Higher Maturity Higher Fitness Increasing Capability - Decreasing Technical Risk BASIC RESEARCH T R A N S I T I O N INOVATION Manufacturing Readiness Levels MRL 1 MRL 2 MRL 3 MRL 4 MRL 5 MRL 6 MRL 7 MRL 8 MRL 9 MRL 10

14. Resource Requirements Increase with MRL Maturity |||||||||| 12345678910 Manufacturing Readiness Level Resources and Dollars Phase IPhase II Phase III BASIC RESEARCH T R A N S I T I O N INOVATION

15. 15 MRL Take-Aways Manufacturing readiness and technology readiness go hand-in-hand. – MRLs, in conjunction with TRLs, are key measures that define risk when a technology or process is matured and transitioned to a system. MRLs can also be used to define manufacturing readiness and risk at the system or subsystem level.

16. 16 Questions ? “He who fails to plan, plans to fail” Proverbs