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

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

3. 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

4. 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

5. 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

6. 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

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

8. 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