1. Parts Standardization & Management Committee (PSMC) Meeting Oct 22, 2007 San Diego, CA Parts Management Reengineering Implementation Process Team (PMRIPT) Reengineering Task “Hand-Off” To PSMC

2. Implementation Team Participants  Military Departments and DLA  OSD Systems Engineering  DMSMS Working Group  GIDEP  PSMC  Industry  Trade Associations (i.e., AIA, AIAA, GEIA)

3. Parts Management Reengineering Review PMRWG reported out – April 06 – TLCSM gave approval to proceed with implementation PMRWG reported out – April 06 – TLCSM gave approval to proceed with implementation PMRIPT established to implement – TLCSM to be policy advocates PMRIPT established to implement – TLCSM to be policy advocates Three highest priority recommendations: Three highest priority recommendations: Re-establish parts management as part of Systems Engineering Re-establish parts management as part of Systems Engineering Make parts management a requirement in policy and contracts Make parts management a requirement in policy and contracts Provide modern tools and information for parts management Provide modern tools and information for parts management

4. Parts Standardization & Management Committee (PSMC) Support DSP in Parts Management issues Support DSP in Parts Management issues Standing forum Standing forum Industry collaboration Industry collaboration Support and assist in re-engineering Support and assist in re-engineering

5. Parts Management Vision Parts management is incorporated in eight appropriate sections of Systems Engineering process flow including all configuration audits and milestone reviews. Parts management is incorporated in eight appropriate sections of Systems Engineering process flow including all configuration audits and milestone reviews. Parts management is required in all contracts for new and major modifications for DoD systems: Parts management is required in all contracts for new and major modifications for DoD systems: Parts management plan required as part of Systems Engineering Master Plan Parts management plan required as part of Systems Engineering Master Plan Contractor parts management plans approved based on parts selection for reliability, quality, and standardization, and to minimize impact of part obsolescence Contractor parts management plans approved based on parts selection for reliability, quality, and standardization, and to minimize impact of part obsolescence

6. Parts Management Vision Parts management tools help: Parts management tools help: design and PBL contractors to make the best decisions, and design and PBL contractors to make the best decisions, and help government program offices manage parts management processes: help government program offices manage parts management processes: Parts management information systems and selection tools have complete and up-to- date information; Parts management information systems and selection tools have complete and up-to- date information; Parts management tools are “self-help” so that contractors manage parts management processes in the best interest of the DOD. Parts management tools are “self-help” so that contractors manage parts management processes in the best interest of the DOD.

7. PSMC Future PSMC future PSMC future Short term – work with PMRIPT and DMSMS Working Group to develop appropriate policies and procedures Short term – work with PMRIPT and DMSMS Working Group to develop appropriate policies and procedures Medium term – work with PMRIPT and DMSMS Working Group to develop appropriate implementation strategies, training, marketing, etc. to implement balance of PMRWG implementation plans; monitor parts management activities to ensure effectiveness, and recommend policy/procedural changes as needed Medium term – work with PMRIPT and DMSMS Working Group to develop appropriate implementation strategies, training, marketing, etc. to implement balance of PMRWG implementation plans; monitor parts management activities to ensure effectiveness, and recommend policy/procedural changes as needed Long term – provide support as needed to parts management; consider potential merger with DMSMS Working Group. Long term – provide support as needed to parts management; consider potential merger with DMSMS Working Group.

8. PSMC Issues Challenges: Challenges: Determine best structure to support implementation activities Determine best structure to support implementation activities Provide broad spectrum industry input Provide broad spectrum industry input Find ways to function in constrained travel budget environment Find ways to function in constrained travel budget environment

9. Implementation Approach Parts Management Reengineering Implementation Phase has been very active: Parts Management Reengineering Implementation Phase has been very active: Kick-off meeting held in May 2006 Kick-off meeting held in May 2006 3-day meetings in 2006: July, Aug, Oct, Nov 3-day meetings in 2006: July, Aug, Oct, Nov and 2007: Jan, Mar, May, Jul, Oct and 2007: Jan, Mar, May, Jul, Oct Parts Management Panel at DSP Conference, March 2007 Parts Management Panel at DSP Conference, March 2007 Industry Day, May 2007 Industry Day, May 2007 Parts Management Initiatives Panel at DSP Conf, March 2008 Parts Management Initiatives Panel at DSP Conf, March 2008 PMRIPT organized into project teams to guide implementation of the top three recommendations: PMRIPT organized into project teams to guide implementation of the top three recommendations: Systems Engineering Team Systems Engineering Team Policy and Contracts Team Policy and Contracts Team Tools Development Team (AKA “Portal Team”) Tools Development Team (AKA “Portal Team”)

10. Implementation Coordination Enlisted Parts Standardization & Management Committee (PSMC) to support reengineering effort Enlisted Parts Standardization & Management Committee (PSMC) to support reengineering effort Considerable membership overlap Considerable membership overlap Combined biannual meetings Combined biannual meetings Briefed a multitude of people in various groups Briefed a multitude of people in various groups Increased collaboration with DMSMS Working Group Increased collaboration with DMSMS Working Group DMSMS WG Chair leader of PMRIPT Tools Project Team DMSMS WG Chair leader of PMRIPT Tools Project Team DSPO on DMSMS Common Use Tools Committee DSPO on DMSMS Common Use Tools Committee OSD Systems Engineering on DMSMS WG & PMRIPT OSD Systems Engineering on DMSMS WG & PMRIPT DMSMS WG/PMRIPT provided updates at respective mtgs DMSMS WG/PMRIPT provided updates at respective mtgs

11. Dialogue with Industry Industry Day, May 8 th 2007 Industry Day, May 8 th 2007 Broad representation from industry Broad representation from industry Good interaction – Q&A Good interaction – Q&A Agenda Agenda DSPO addressed reengineering vision DSPO addressed reengineering vision Reviewed final PMRWG report Reviewed final PMRWG report Each PMRIPT project team lead briefed Each PMRIPT project team lead briefed PSMC representative from industry briefed / invited new participants PSMC representative from industry briefed / invited new participants

12. Implementation Progress Systems Engineering Team Systems Engineering Team “Restore parts management as a systems engineering discipline” Working with Systems Engineering community on how best to restore parts management into current systems engineering policy and processes Working with Systems Engineering community on how best to restore parts management into current systems engineering policy and processes Coordinating with DAU on incorporating parts management language into appropriate courses (i.e., acquisition, logistics, systems engineering, DMSMS) Coordinating with DAU on incorporating parts management language into appropriate courses (i.e., acquisition, logistics, systems engineering, DMSMS)

13. Implementation Progress Policy and Contracts Team Policy and Contracts Team “Make parts management a requirement in policy and contracts” Developing policy documentation (i.e., DoD 5000.2, SD-19), and developing a “MIL-STD-Parts Mgmt” (MIL-STD-3018) and AT&L policy memo Developing policy documentation (i.e., DoD 5000.2, SD-19), and developing a “MIL-STD-Parts Mgmt” (MIL-STD-3018) and AT&L policy memo Developing contract templates and data item descriptions (DIDs) for parts management contractual requirements Developing contract templates and data item descriptions (DIDs) for parts management contractual requirements

14. Implementation Progress Tools Development Team Tools Development Team “Provide modern tools and information for parts management” Interviewing key users to determine tools requirements Interviewing key users to determine tools requirements Coordinating with DMSMS community to maximize and build upon existing DMSMS capabilities to develop a single point of entry to parts management data and information Coordinating with DMSMS community to maximize and build upon existing DMSMS capabilities to develop a single point of entry to parts management data and information Portal demo given at Industry Day Portal demo given at Industry Day

15. Where We Go From Here “Rationalize” PSMC Subcommittees with the PMRIPT Project Teams “Rationalize” PSMC Subcommittees with the PMRIPT Project Teams During the breakout sessions tomorrow, the three Project Teams will work with the PSMC participants on “handing off” the details During the breakout sessions tomorrow, the three Project Teams will work with the PSMC participants on “handing off” the details The newly formed subcommittees will brief out before we adjourn the meeting The newly formed subcommittees will brief out before we adjourn the meeting PSMC & DSPO work together to finish implementing PSMC & DSPO work together to finish implementing Need to have contact more often than every 6 months Need to have contact more often than every 6 months Because of travel budgets, we’ll need to use go-to meetings and e-mails as best we can Because of travel budgets, we’ll need to use go-to meetings and e-mails as best we can

16. Questions ???

17. BACKUP Slides

18. Major PMRWG Recommendations Restore parts management as an engineering discipline Restore parts management as an engineering discipline Make parts management a contractual requirement Make parts management a contractual requirement Create Parts Management Knowledge Sharing Portal Create Parts Management Knowledge Sharing Portal Improve DOD organization for parts management Improve DOD organization for parts management Build key partnerships and relationships Build key partnerships and relationships Develop parts management tools and metrics Develop parts management tools and metrics Develop new marketing products Develop new marketing products Understand parts management’s contribution to logistics footprint Understand parts management’s contribution to logistics footprint

19. Parts Management is First and Foremost an Engineering Discipline Selecting the right parts drives downstream outcomes Selecting the right parts drives downstream outcomes Part selection is an engineering responsibility Part selection is an engineering responsibility Today’s engineering parts management practice is inadequate Today’s engineering parts management practice is inadequate OEM parts management is often unfunded, therefore, not done OEM parts management is often unfunded, therefore, not done Our recommendations address these issues Our recommendations address these issues

20. What We Mean by Making Parts Management A “Requirement” Not a return to past “prescriptive” practices Not a return to past “prescriptive” practices Proposal to add some needed discipline Proposal to add some needed discipline Action: Parts Management during design Action: Parts Management during design Result: More supportable system during sustainment Result: More supportable system during sustainment Require a Parts Management Plan that addresses: Require a Parts Management Plan that addresses: DMSMS DMSMS Parts Selection Parts Selection Address Parts Management in program reviews Address Parts Management in program reviews Key element of a well-executed program Key element of a well-executed program

21. The Critical Need — Current, Accurate Parts Data Existing parts data is inadequate, inaccurate, incomplete, inconsistent Existing parts data is inadequate, inaccurate, incomplete, inconsistent Parts data is spread across hundreds of sources Parts data is spread across hundreds of sources DoD is now reengineering many of its parts- related information systems DoD is now reengineering many of its parts- related information systems Now is the time to act Now is the time to act We must integrate parts management requirements with current initiatives We must integrate parts management requirements with current initiatives The first element is the DMSMS KSP The first element is the DMSMS KSP PMRIPT is collaborating with the DMSMS WG PMRIPT is collaborating with the DMSMS WG