Committed to Excellence Tank-automotive & Armaments COMmand Transforming the Industrial Base Leadership Teaming Communication Employee Support Strategic Thinking Organizational Climate Ground Systems Industrial Enterprise

Committed to Excellence 2 of 18 Outline GSIE overview, capabilities, and intent Initiatives to date Legislative reform Financial reform Lean initiatives Workforce revitalization Infrastructure reduction Summary

Committed to Excellence 3 of 18 GSIE Overview Combines the capabilities of Anniston, Red River, and Sierra Army Depots, Rock Island and Watervliet Arsenals, and the Lima Army Tank Plant into a single Enterprise Designed to leverage the capabilities of the ground systems industrial base Goal is to continuously improve support to soldiers while reducing the cost of products and services to a level comparable with industry without the need for subsidies

Committed to Excellence 4 of 18 GSIE Capabilities Engineering and Prototyping Manufacturing Maintenance and Overhaul Field Services

Committed to Excellence 5 of 18 Product Design and Development Rapid Prototyping System/Component Simulation CAD/CAM/CIM (Unigraphics/ProE/Autocad) Dynamic/Stress Analysis Material Testing Chemical Analysis Oil and Lubrication Metallurgical/Rubber Manufacturing Support Product Redesign/Improvement Lean/Six Sigma/ABC Engineering and Prototyping

Committed to Excellence 6 of 18 Precision Machining 7-axis Machining Centers CNC/Automated Cellular/Flexible Machining Fabrication/Assembly Welding (Robotic, Submerged, Orbital, etc.) Ferrous, Non-Ferrous, Composites, Rubber, and Titanium Casting/Forging Cannon Tubes Ferrous, Non-Ferrous, and Titanium Heat Treatment/Plating/Finishes Cylinder/Cannon Tube Chrome Plating Chemical Agent Resistive Coating (CARC) Painting Tool, Die, and Gage Manufacturing

Committed to Excellence 7 of 18 Systems/Subsystems Support Wheeled and Tracked Vehicles Self-Propelled and Towed Artillery Small Arms and Mortars Major Subsystems (engines, transmissions, etc.) Optics/Electronics Night Vision Radiological Circuit Cards Unique Processes Robotic Metal Spray Rubber Denuding Testing Gymnastication/Live-Fire/Test Track Engine/Transmission/Hydraulic Component Test Facilities Maintenance and Overhaul

Committed to Excellence 8 of 18 Forward Repair Facilities/Teams Modifications/Upgrades Failure Analysis Testing (laboratory and simulation) Spare/Repair Parts Reverse Engineering Rapid Prototyping Receipt, Storage, and Issue of Equipment Manual and Automated Storage/Retrieval Systems Open-air and Enclosed Facilities Environmentally Controlled and High Desert Storage Field Support

Committed to Excellence 9 of 18 Capabilities Summary Cradle to grave capability Full range of processes and materials Current, interim, and future systems Leading edge of new technologies Partnerships to meet the Warfighter’s needs Private industry Win-win for government and industry Flexible infrastructure Ability to meet any requirement

Committed to Excellence 10 of 18 GSIE Intent To grow the workload at each installation, not rearrange existing workload To clarify and simplify the rules under which we operate To make the rules applicable to all To advance public/private partnerships To increase efficiency To reduce capital expenditures

Committed to Excellence 11 of 18 Initiatives to Date Established organization 7 October 2002 Formed Corporate Board of Directors and Leadership Council Approved as Business Initiatives Council (BIC) initiative (legislative and financial reform) Implementing lean and other efficiencies Revitalizing the workforce Focusing on quality Integrating engineering and production Pursuing additional workload Looking at footprint reductions

Committed to Excellence 12 of 18 Legislative Reform 11 statutes currently affect business, 3 prominently Introduced by different Congressmen for different reasons All offer benefits for some installations, but not all Variance causes confusion, uncertainty, and program delays New legislation being offered that combines the best of each into a single statute Clarifies the rules and applies them to everyone Intended to facilitate more public/private partnerships –Firm fixed prices, multi-year contracts, variable costing

Committed to Excellence 13 of 18 Financial Reform Examples –Return of financial gain –Capital investment authority –Depreciation rules –Capacity measurement –Removal of material costs from rates –Metrics 14 Army Working Capital Fund (AWCF) Business Initiatives Council (BIC) reforms

Committed to Excellence 14 of 18 Sample of Lean Projects AVDS 1790 RECIPROCATING ENGINE PROCESS SEE VEHICLE RECAP PROCESS FORWARD REPAIR SYSTEM ANAD RRAD RIA Cost avoidance: $4.2M Turn-around Time: 62 days down to 36 days Labor efficiency: 33% Improvement Now, AVDS 1790 is part of entire reciprocating engine process, exporting gains to 6V53, M903, 8V71, and APU. Cost avoidance: $4.3M Monthly output up 30% Labor hours per engine: 34% reduction Travel distance reduced by 35% Labor efficiency: 14% Improvement CLASS VIII MEDICAL SUPPLIES (COSIS) SIAD Eliminating excess handling and eliminating non-value added movement of materials LEAN PROJECTS WVA Cost avoidance: T-53 and 81mm Mortar with a savings of $330K. Weapon System Lead Time process will use 120mm M256 Cannon as pilot project to reduce weapon system lead times

Committed to Excellence 15 of 18 Staffing Initiatives and Workforce Revitalization Efforts LEAN staffing process –Reviewing each vacancy at command level –Reallocating or reengineering as required –Targeting 2 for 3 direct replacements and 1 for 3 indirect Workforce revitalization –Apprentice program –Co-op program –Student employment program –Worker trainees –Temporary hires and terms employees to enhance flexibility Efforts and results –Working toward 75/25 percent direct/indirect ratio –Reducing average age of employees –Reducing average length of service Trends going in right direction

Committed to Excellence 16 of 18 Average Age

Committed to Excellence 17 of 18 Examples of Infrastructure Reductions Watervliet Arsenal –290,000 square feet of floor space –525 pieces of industrial plant equipment –Potential for more Rock Island Arsenal –700,000 square feet of floor space –683 pieces of industrial plant equipment

Committed to Excellence 18 of 18 Summary Leverages the government-owned industrial capability Grows the workload at each installation Reduces unit prices to customer Eliminates the need for any subsidy Revitalizes the workforce Fosters more public/private partnerships