DoD’s Global Collaborative Manufacturing (GCM) Initiative / Network Centric Manufacturing (NCM) NDIA Manufacturing Division, August 14, 2008 Eric Mittelstadt, CEO

2 NACFAM Below-the-line: requires “intense collaboration” NACFAM’s Mission To Broker the “Intense Collaboration” Required to Strengthen U.S. Manufacturing

3 Industry Sample of NACFAM Members Research Universities Associations Research Organizations FederalAgenciesCommunityColleges

4 Sustainable and globally competitive based upon innovative practices & policies that continue to “Raise the Playing Field” Advanced Manufacturing Network Technologies Centric & Processes Strategies Workforce Sustainable Development & Manufacturing Life-Long Learning Models NACFAM Scenario for U.S. Manufacturing Raising the Playing Field Innovation to Commercialization Superhighway

5 Solving Tomorrow's Challenges: Complex Societal Challenges Include: Energy, Water, Food, Health Care, Infrastructure, Defense, Environment, Etc. Solutions must utilize more: Sustainable technologies, practices and business models “Raising the Playing Field” requires more: Ability to accelerate innovative solutions into the marketplace (to the warfighter) Open & collaborative network centric business model

6 How can the U.S. compete? US advantages: Ability to Innovative Ability to Commercialize Collaborative Innovation, Sustainability, GCM/NCM, High Skills, New Technologies, Entrepreneurialism, Infrastructure, Financial Capital Mastering and collaborating with these innovation ingredients (within a global network) becomes increasingly critical for U.S. manufacturing to remain global competitive and sustainable

7 Global Innovation-Based Competition In the past, innovation was mostly based upon one’s internal innovation ability Bell Labs, GM Research, Xerox PARC, GE Research, Lockheed Skunk Works, et al Today, innovation is too complex to remain internal to the company Entire supply chain must innovate (Jointer Striker Fighter) Not without some setbacks (Boeing 787 Dreamliner) Tomorrow, open and collaborative innovation will dominate Networks of innovation (Nanotechnology, Advanced Energy, Biogenetics, Sustainable Development, et al)

8 Target Destination - Enabling Network Centric Manufacturing  Network Centric Manufacturing  Where agile partners exploit new capabilities in:  (1) connectivity (for data and information) and  (2) collaboration (among people and organizations) to enable greater advanced manufacturing innovation, productivity, & sustainability throughout the extended enterprise & over the total life-cycle of products.

9 Network Centric Manufacturing Terminology  Network for a reason  Not net centric (i.e., we don’t mean just the Internet, which is for data and information)  We do mean network, which is for people, organizations, companies  For example, one multi-billion $ company said IT is really big, but it’s only about 20% of the solution; 80% is the people, the relationships, the trust, and the mutual commitment to shared goals  DoD Name – Global Collaborative Manufacturing !!!

10 The Macro View – What’s Different? Reduce –Rigid Supply Chains –Functional Boundaries & Silos –Hierarchies –Command and Control Heighten Capabilities Digital Thread Interoperability & Standards Intense Collaboration & Smart Trust Performance Measures & Complexity Management at Systems Level for Product Life Cycle Solutions Redefined Manufacturing Skill Sets

11 Statement of Intent A global enterprise capability for manufacturing and logistics that is customer focused,, information based, embraces innovation, builds from the best commercially available capabilities, promotes appropriate competitiveness, and is resistant to all kinds of disruptions (known/anticipated and the yet-to-be- defined/unknown disruptions). To Achieve National Security Mandated Capability and US Industrial Base Competitiveness Will Require:

12 How do we get people to think in terms of the network, change the paradigm?