Acquisition Community Supplier Issues in the Acquisition Community Mr. Keith Ernst Acting Director DCMA This is an Overview….not program specific 27 March 2007

Leading Quality Strategies The Human Element Culture The Supplier Element Value Stream Collaboration The Global Element Complexity My World Industrial Base Concerns 2

Background on Concern Concern Heightened by October 2006 tasking from AT&L to Study Major Program Performance Problems Affecting a Representative Sample of Production Programs Program Management Program Transition Staffing Other Causes 3

Program Management Supply Chain Challenges Baseline - Insufficient/Poor Planning Scope Creep (e.g. Aircraft Weight Growth, Increase Requirements, etc.) Sharing Resources Among all Programs Specification Change Notices 4

Program Transition Transition Problems Systems Design and Development to Low Rate Initial Production Low Rate Initial Production to Full Rate Production New Starts Quality Issues as Programs Transition Lack of Properly Trained Manufacturing Personnel 5

Staffing Senior Management Design Engineers & Checkers Constancy of Purpose Design Engineers & Checkers Experienced Engineering Talent Manufacturing Personnel Skilled Personnel Engineering Shortages Program In Transition 6

Challenges Supply Chain Disruption Capacity Constraints Insufficient Up-Front Production Planning Design & Engineering Shortfalls Scope Creep Specialty Metals Supply 7

Quality Professionals Our Challenges So many complex issues Technical and Cultural Your Role Get Engaged Bring Quality Disciplines to these Challenges Our Success Supports our Warfighters 8