1. 1 Creating Ammunition Enterprise Excellence Mr. Kevin Fahey Deputy Program Executive Officer for Ammunition (973) 724-7102 Kevin.Fahey@us.army.mil 39 th Annual Gun & Ammunition/Missiles & Rockets Conference

2. 2 Key Points  Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management.  Instilling discipline/System Engineering mentality in the way we look at every aspect of the ammunition enterprise  Still have major work to do in working with and communicating with our customers/external interfaces  The Ammunition Enterprise has Addressed Critical Needs and is Poised to Focus on Long Term Strategic Challenges

3. 3 MISSIONLEADSUPPORT Hardware ProductionPEO-AMMO JMC Components for Renovation (Maint Spt) PEO-AMMO JMC APE (Maint Spt) PEO-AMMO JMC RDT & EPEO-AMMO JMC Industrial Base Co-Lead PAA Program / Budget / Receive FundingPEO-AMMO JMC Receipt / Issue JMCPEO-AMMO Storage / Distribution Management JMC PEO-AMMO Inventory / Accountability JMC PEO-AMMO Safety / Security JMC PEO-AMMO Maintenance JMC PEO-AMMO Quality Assurance(ASRP / Surveillance) JMC PEO-AMMO Demilitarization/ Disposal PEO AMMO JMC Acquisition StrategyPEO-AMMO JMC OMA Program / Budget / Receive Funding JMC PEO-AMMO Transportation JMC PEO-AMMO ACQUISITION LOGISTICS / SUSTAINMENT KEY TO ENTERPRISE: INTEGRATION AND SYNCHRONIZATION Ammunition Enterprise Responsibilities (As briefed to the AAE and CG AMC on 6 December 2002)

4. 4 Ammunition Enterprise Definition  The Ammunition Enterprise is the integration of people, infra- structure and processes required for ammunition life cycle management to support the warfighter.

5. 5 Enterprise Management Philosophy  Promote Best Value Acquisitions  Utilize Disciplined Processes  Deploy Six Sigma and Lean Design/Production  Promote Continuous Process Improvement and Technology Insertion  Promote Commonality and Interoperability  Promote Spiral or Evolutionary System Development  Ensure customers voice in the process Put Eyeballs On – “Trust, but Verify”

6. 6 Executive Black Belt Program  Initiated VSE facilitated monthly sessions at PEO Ammo with Sr. PEO, JMC, ARDEC Leaders on Jun 03  Learning Lean Six Sigma tools through lectures and three project teams working on: Procurement of ammunition Supplier assessment process Engineering support process  Mapped ammo enterprise and prioritized processes improvement opportunities

7. 7 Expected Payback  Acquisition management consistency  Fact-based decision  Better prioritization and application of resources  All aspects of the enterprise taken into consideration during process  Complete, consistent and comprehensive acquisition strategies  Streamlined processes  Baseline for our decisions  Better understanding and management of risks  Manage Ammunition as a major acquisition program across the enterprise and not a commodity  Reliable and effective products for the war fighter

8. 8 Deployment Model Enterprise Excellence Lean Metrics Lean Workload Balancing Process Metrics Lean Process Optimization Quality Management System Effectiveness Efficiency Voice of the Customer Six-Sigma Project Selection Six-Sigma Process Control Six-Sigma Process Improvement s A disciplined, structured approach for process and product optimization that is focused on the effectiveness' and efficiency bottom line of the organization.

9. Develop Ammunition Acquisition Of Ammunition Production Of Ammunition s Requirements Generation Process - AAO Requirements Document Funded Program Program Management/Planning/Control Contracting System Engineering Test and Evaluation PPBES Milestone Review Process DP 2 3 4 Yes No Technical Definition Milestone C Industrial Base Strategy Funding Acquisition Strategy / Planning Contracting Program Management/Planning/Contr ol Review/Certification if TDP if Applicable PPBES Pre-production Engineering Price & Availability IM Strategy (legacy systems) Contract Funding Stockpile Management Production/Systems Engineering (if Applicable) Design and Process Improvement Production Testing Production Monitoring Configuration Management Acceptance Program Management/Planning/Control Manufacturing Quality Assurance First Destination Shipping Contract Modification Safety and Environmental 5 Ammunition/Comp onents Surveillance Requirement Contingency/Out- loading Requirements Program Management/Planning/Control Surveillance Program / QDR Suspensions Inventory Control/Accountability Receipt and Issue Distribution and Requisitioning Out loading Retrograde Transportation Maintenance of Storage Facilities Safety/Security Pre-positioning Malfunction Investigation PPBES 6/7 Serviceable Obsolete Unserviceable Funded Program Technical definition Technology Development S and T Systems Engineering Modeling and Simulation Technology Transfer Configuration Management New Technologies Developing Technologies Ammunition Enterprise Map 1

10. Maintenance of Stockpile Sales Demilitarization Of Ammunition Maintenance Required 5 Program Management/Planning/Control Maintenance Planning Parts Procurement Contracting Acceptance Safety security environmental Execute Program Management Control 5 Yes No Program Management/Planning/Control Commercial Sale Develop Demil Technologies and Procedures R 3 Contracting Disposal Recode to Stock FMS Presidential Drawdown Direct Sales GFM E Unserviceable Recap Modernization Expended ? 5 6 7 8 Expended ? 4/5 No Organic Issue Requisition Training Combat Testing Ammunition Enterprise Map

11. 11 Enabling Initiatives  PEO Ammo/JMC MOU  Operating in a Joint Services environment  Industrial Base Strategic Planning  Demilitarization Strategic Planning  Munitions Readiness Reporting  Collaborative Systems Environment

12. 12 Summary – The Ammunition Enterprise is …  An integrated organization that sees the “big picture” and hears the “voice of the customer”  Making fact based decisions  Continuously improving effectiveness and efficiency  Championing innovation at all levels Supporting the Joint warfighter in every way possible

13. Discussion

14. 14 Ammunition Enterprise  Mission: Single Manager for Conventional Ammunition Life Cycle Acquisition Management of Ammunition  Key Objectives: Unify and Integrate Ammunition Management Under One Single Chain of Command – Working hard to integrate logistics and acquisition and create a single voice (not single person) in SMCA operations/Army Ammunition Management Develop a Unified Munitions Acquisition Strategy Identify and Optimize Key Business Processes Develop an Overarching Industrial Base Strategy (Organic and Commercial) Provide Integrated Supply Chain Management of the Ammunition Production Base

15. 15 Enterprise Excellence  Create an agile organization capable of quickly addressing problems, changing budgets, changing requirements, changing technology, changing industrial base etc.  Culture based on fact-based decision making  Maximize value though quality management-voice of customer-effectiveness-efficiency Value is the timely delivery of effective quality ammunition that is safe and provides our warfighters an overmatch capability-readiness