Sikorsky/ DLA Partnership I would like to thank Aviation Week for this opportunity to share our approach to Improving Supply Chain Fill Rate at SAC. BG Phillips, Carole Rickard Hedden, and my fellow aerospace professionals.

JOINT STEERING GROUP (JSG) EXECUTIVE COMMITTEE (EC) Lean Partnership Strategic Supplier Alliance (SSA) Charter Signed Sep 03 JOINT STEERING GROUP (JSG) EXECUTIVE COMMITTEE (EC) Contract Expansion Forecasting & Customer Support Pricing Strategy IT Efficiency

Background Supporting the Warfighter DLA/Sikorsky Corporate Contract requires customer direct orders to ship within 1 or 3 days based on priority In Aug 06, Sikorsky’s shipping department average turnaround time (TAT) was 13.4 days Sikorsky proposes a Lean Event to Rear Adm. Heinrich that took place Nov 06 and a follow on event in May 07 Event 1: Cut TAT to ship by 55% - Nov 2006 Event 2: Reduced TAT to ship to average of 41 hours – May 2007 Event 3: Reduce TAT to place parts on contract

Event 3 Pricing Strategy The Government was attempting to add new parts to the Sikorsky Corporate Contract Turn around times from Request for Quote to contract award exceeded 200 days Parts were not available to the Warfighter on a timely basis Drove creation of direct Purchase Requests Labor intensive process The Pricing Improvement Team identified reducing TAT as an FY 08 objective Resulted in Delays in Placing Parts on Contract

Event 3 Charter Purpose: Improve TAT For Adding Items to Sikorsky Contract Goals: 1.Original: Reduce TAT From 208 Days to 30 Days. Upon Re-scope: From 157 Days to 30 Days (95% Percentile). 2. Reduce PRs From 136 to 60 Per Month Scope: Quote Receipt to Mod Signing to Loading in Both Order Processing Systems

Pricing Improvement Team Met over 2 days to better understand the problem Used the “Lean Process” structured approach Adopted by DLA and used on a number of programs Standard work to resolve problem issues Five basic steps: Define Measure Analyze Improve Control

Current State

The Major Problems Summarized Too Many Steps With Too Much Back And Forth Both Parties Not Always Aware Of The Types And Quantity Of Data Required Key Personnel Not Always Available - No Back-ups Identified Or Trained Some Processes Could Be Automated But Were Being Done Manually

Future State

Event Results Current State Future State Process Days 157 34 Process Steps 44 13 PRs/Month 140 60 Improved DSCR-SAC Information Sharing

Supporting the Warfighter