1. OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman, Vice President for Programs and Research Mr. Bob Goodloe, Program Manager and Manufacturing Economic Development Specialist ( Oklahoma Production Integration Network (OPIN) Keeping America Secure and the Warfighter Prepared

2. OSU Center for Innovation and Economic Development, Inc. Agenda 1.Overview: OSU-Enterprise Center, LLC and OPIN 2.Problem Addressed: Obsolescence, Business Model and the Manufacturing Network 3.Solution - How the Network Operations: Problem Part Solutions/Sourcing; Web Based Support; Part Categories/Capabilities; Manufacturing Support; Past Performance; Economic Impact 4.Moving Forward: Contract Opportunities; Contract/Part Needs (MICAPs); Contact Information; Next Steps

3. Winning the War Against Obsolescence. Reducing Costs. OSU Center for Innovation and Economic Development Adapted from Richard Lester, Industrial Performance Center MIT, 2004 Front Edge science and engineering research Technology licensing Business start-ups Business-University partnerships Industry identity Standard setting PR and image building Conferences, workshops Entrepreneur Forums Technical assistance for subcontractors, suppliers Education/ manpower development Responsive curricula Incentives and Partnerships Bridging among disconnected actors Filling ‘structural holes’ Creating and ‘industry identity’ Investments and Loans Community Building Problem Solving through research, consulting, … Education/workforce development Global best practice Foresight exercises; Scenarios Convening User-Supplier forums Creating Recruiting / Diversifying Current Upgrading New Industries Expanding Industries into Related Current Industries (I) Industries (II)New Ones (III) (IV) Enterprise Center LLC Technology Transfer Education and Training

4. Winning the War Against Obsolescence. Reducing Costs. Problem: USA’s Parts Obsolescence Challenge Military systems can have a life-cycle of 20 to 60+ years, with the systems often outlasting the component parts. DoD’s reg’s. and long developmental lead times reduce incentives for many manufacturers, plus DoD needs relatively few pieces of many varied items on a short turnaround. The decrease in component availability is called DMSMS: Diminishing Manufacturing Sources and Materials Shortages. Lifecycle costs soar, with parts being increasingly expensive, harder-to-find, and harder to produce. DMSMS affects mission readiness, costs, inventory availability, safety and security.

5. Winning the War Against Obsolescence. Reducing Costs. The OPIN Business Model TDP? No Yes Reverse Engineering to Create TDP Request for Quotes Best Quote: C 4 Test Capability Certification/ Qualification Cost Capacity Parts Customer Contracting Production Part Need Identified

6. Winning the War Against Obsolescence. Reducing Costs. TDP List Road Map for TDP Development Pursue Bid Package Request Part For RE Low Demand Parts Quantify - Type - Numbers Advanced Planning - Technology/ Parts - Forecasting - Impact Yes TDP Needs/ Requirements Manufacturing Requirements Matrix Select Manufacturer Manufacturer Capability Matrix RFQ From Mfg Research TDP for : Serviceable on hand Back orders Quantity due in Demand rate Issue P.O. Monitor Deliver TDP Monitor RFQ Forward Quote To Buyer Validate Part List Quote Acceptable Reject NO ROADMAP: 0307 PROCESS ARRAY 1. Buyer Supplies Requirements and Parts 2. Roadmap To Develop (Tech Insertion) Parts 3.Determine TDP/Bid Package Needs 4.Access Production Needs 5. Obtain Quote From Manufacturer 6. Buyer Handoff and Monitoring 7. Post Parts on E MALL Parts Roadmap

7. Winning the War Against Obsolescence. Reducing Costs. The Manufacturing Network OPIN: Ten Steps to Success Jobs Capital 1. OPIN Contact2. Introduction3. Audit 4. Certification5. Database Designations 6. Workforce Development Plan7. RFQ Capabilities 8. Bids 9. Partnerships/Teams10. Assessment

8. Winning the War Against Obsolescence. Reducing Costs. From ASSET to OPIN Economic Outcomes: Examples ASSET20022006* Companies Served 70202** Investment$2.4 M$12+ M New Jobs142350 New Contracts$1.2 M$13 M Note: * 75 DoD Source Approved; Receiving Contracts * 69 DoD Source Approved; Awaiting Contracts **130 Actively Pursuing Source Approval

9. Winning the War Against Obsolescence. Reducing Costs. Problem Parts Solutions/Sourcing 1560, 1650, 1660, 1680, 2510, 2530, 2815, 2840, 2910, 2995, 3020, 3070, 3110, 3120, 4420, 5120, 5330, 5340, 5355, 5950, 5995, 6150 Complete list/specifics located at: http://asset.okstate.edu/

10. Winning the War Against Obsolescence. Reducing Costs. Example #1: B-1’s Connecting Link – Bearing Stock #: 3040-01-531-1949 Context: Last Part Produced in 1987; No Procurements Since; No Spares; PDM is Limited to Repair; Exotic Material; 4 per Aircraft History: DLA Requests Bids: 1Q 2006 – Only 1 Response – Us! No Spares to Use to Reverse Engineer and Spec – then, B-1 Grounded in Diego Garcia in February 2007 Status: Reverse Engineer; Bid

11. Winning the War Against Obsolescence. Reducing Costs. Example #2: B-1’s Vaneaxial Fan Assembly Stock #: 4140-01-209-4215 Honeywell: OEM - $23,232.86 DLA- Tinker OPIN- Tinker Housing Rebalance and Repair $7,981.82$3,500.00 Rotary Repair1,900.26750.00 End Bell Repair710.27350.00 Totals$10,592.35$4,600.00

12. Winning the War Against Obsolescence. Reducing Costs.. OPIN is end-to-end service: from identification of problems to life-long support and an early surface-and-solve approach. OPIN is outcomes- driven: better, cheaper, faster, friendlier. OPIN is a system: a clear linking of all assets and people to accomplish a mission – over the long-term. OPIN is globally competitive: less waste, less unwanted variability, more nimbleness Why the Network Works

13. OSU Center for Innovation and Economic Development, Inc. Contact Information Oklahoma State University CIED 505 N. Main St. Stillwater, OK 74074 405-744-2325 Glenn Freedman, Ph.D. VP-CIED Programs and Research glenn.freedman@okstate.edu OPIN Leadership Team Bob Goodloe Program Manager 405-744-2372 bob.goodloe@okstate.edu John Gwin Electronics 405-744-2330 john.gwin@okstate.edu