Availability and Reduce Cost NAVAL AVIATION MATERIALS, MANUFACTURING & MAINTENANCE WORKSHOP

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1 PEO(A): Using Technology to Improve Availability and Reduce Cost NAVAL AVIATION MATERIALS, MANUFACTURING & MAINTENANCE WORKSHOP PRESENTED BY: MR. TOM LAUX Program Executive Officer Air ASW, Assault and Special Mission Programs 30 January 2008

2 Current Environment New aircraft require new materials to make weight thresholds. War strategy driving more mobile/forward maintenance. Equipment is more complex/expensive and repair costs are on the rise.

3 Aircraft Battle Damage Repair (ABDR) During early stages of a war minimum forward deployed repair capability exists. The ability to rapidly repair battle damaged equipment with minimal external support is required. The ABDR manual provides the sailor/marine with the capability to provide temporary repairs to fly the equipment out of harms way. Developing ABDR Manual for the V-22 and exploring potential for the H1 Upgrade and CH-53K. ABDR is one of the key capabilities that will truly enable expeditionary aviation - particularly in a distributed ops environment MALS Commanding Officer

4 Readiness Modeling Pursuing and evaluating pro-active tools to optimize reliability, sparing, and total ownership costs. Cost Wise Readiness Integrated Improvement Program (CWRIIP) Tool Consistent methodology and model to identify cost and readiness degraders across NAVAIR T/M/S Quantifies the complexity to determine root cause and resolve Evaluating Advanced Total Life-Cycle Assessment Software Tool (ATLAST) Life-cycle Modeling - Monte Carlo method (Stochastic Simulation) Evaluate, Quantify, and Reduce Life-Cycle Costs & Risks

5 Job Performance Aids Goal: Reduce human introduced errors during performance of maintenance. On-Demand Video Demonstration for maintainer Can be integrated with Interactive Electronic Technical Manuals (IETMs) for field usage. Applications Include: Maintenance Training Complex/Infrequent Procedures Knowledge Capture/Employee attrition New Technology Insertion: to augment new or legacy equipment with an easy-to to-understand reference for rapid adoption and performance optimization Partnering with DLA on the MH-60R pilot program FY07 MH60R JPAs include: ALFS Cable Reel Installation/Removal Data Line Repair Procedures Main Gear Box Corrosion Repair/Treatment/Prevention Procedures Spindle Teardown/Build-Up Procedures Blade Fold Adjustment

6 Job Performance Aids

7 Performance Based Logistic Support (PBL) Concepts PBLs on all major programs (MH-60, V-22, H1, P8, CH-53K) Long-term, firm-fixed fixed price PBLs control cost, shift risk to the provider Full weapon system PBLs not affordable - most strategies break out major components (airframe, engine, mission systems, common systems, etc) Key tenets include: Public private partnerships (PPP) with FRCs Shared Risk Reliability Incentives Transition from cost-plus to firm-fixed fixed price Teaming with the Inventory Control Point (ICP) Consideration of FMS customers Demonstrated success within NAE for improved readiness: T-45 F405- MTBF 600 to 900 Hours, 86% Availability, $26M+ Savings P-3 APU, EDC- Availability 90%, RTAT 162 to 38 days, LRT 35 to 5 days H-60 FLIR- 90% Availability, 40% reliability growth, PPP w/ JAX T % Availability, 54% Time-on-Wing improvement

8 light Hours) Time on Wing (F OIF 0 FY0 02Q1 FY0 02Q3 FY0 03Q1 FY0 03Q3 Material and Process Improvement po e CH-53E Engine Avg Time On Wing 4QFY07 Avg Time On Wing = 631 Flight Hours Actual TiN Installs Begin FY0 04Q1 FY0 04Q3 FY0 05Q1 FY0 05Q3 FY0 06Q1 FY0 06Q3 FY0 07Q1 FY0 07Q3 FY0 08Q1 FY0 08Q3 FY0 09Q FY0 09Q3 Projection 0Q1 0Q3 1Q1 1Q3 2Q1 2Q3 3Q1 3Q3 4Q1 4Q3 Upgraded 82 of 462 T engines Improved Engine reliability initiatives through Titanium Nitride (TiN) Coatings to prevent Turbine Blade and Compressor Vane erosion from operations in desert environments Compressor Match Grinding to reduce the variance in Turbine-to-Shroud clearance Development of a new Build Specification to ensure a better-than-new new engine is produced during overhaul. The T64 Engine Reliability Improvement Program (ERIP). As a direct result, the reliability, performance, and time-on-wing for T64 Engines has been dramatically increased from 395 hours to 681 hours Projected cost avoidance of $243M for Intermediate and Depot maintenance

9 FY2007 Experience Avg Net Repair Cost by Part Entry Year. The average net repair cost of parts with FY07 demand is shown reflecting the rising cost of parts entering the supply chain Part Entry Year 1952 Avg Net Repair Cost of Parts Demanded in FY07 (Unweighted) )

10 Composite Materials Slower proliferation than expected; fewer composites in rotary wing (RW) aircraft as opposed to fixed wing (FW) Possible reasons FW market dominated by commercial, while RW market more driven by military Fewer RW opportunities for leveraging commercial applications Fewer recent RW development opportunities (e.g., airframe R&D programs) Incomplete understanding of composite behavior in dynamic applications and immature composite mfg. techniques for complex dynamic components FW lessons learned don't necessarily apply to RW applications Limited composite expertise/capability at primes Cost-prohibitive qual/test efforts (e.g., Navy MH-60R/S vs. Army MH-60M) Damage susceptibility and ease of repair issues Possible solutions More robust S&T/IR&D investment in composites for rotary wing applications Focus areas: 1) Improve characterization of composite behavior in dynamic environment 2) Mature composite mfg. techniques to enhance producibility and reduce variability 3) Critically examine composite qualification requirements for cost reduction opportunities Articulate ROI based upon mission performance enhancements (due to weight savings)

11 Market Comparison Fixed Wing Rotary Wing Military Commercial Commercial Military $120B/year $12B/year Source: Forecast International (from Sikorsky ICE)

12 LEAN SIX SIGMA IN THE NAVY Gives everyone a voice to improve the way we do business Enterprise AIRSpeed Organizational/Intermediate Level Self-sustaining, continuous improvement teams in- place working projects ashore and afloat Focuses on the total aviation solution within all levels of supply and maintenance Depot AIRSpeed Focused on improving efficiencies throughout depot production, increased productivity at a lower cost. NAVAIR AIRSpeed - Acquisition Workforce In third year of 3-year SECNAV plan Goal to have 25% of extended (with industry) value streams leaned out. 100% senior leaders Champion trained, 4% of workforce green belt trained, 1% black belt trained

13 LSS within PEO(A) All major contractors have strong LSS programs (Lockheed-Martin s LM21 program, Sikorsky s s ACE, etc). PEO(A) s completed projects are generating millions of dollars in savings per year. Clearly l stated goals within each PMA. Network of deployment champions throughout PMA s. Several joint industry projects underway focus area for PEO(A)

14 Continuous Process Improvement T-64 Test Cell Project Project Description Establish a standardized process for analysis of engine test cell data Tollgate Schedule Project Initiation 13 Feb 2007 Measure 11 Apr 2007 Identify root cause(s) for failures resulting Analyze 14 Jun 2007 from low power Improve 14 Jun 2007 Increase 2 nd time yield/pass rate by 25% Control 20 Dec 2007 Verification Jan % of T64-416A Engines Passing Power Checks after Repair and Overhaul 62 1st Test nd Test Before DRP After DRP Success Story Nearly eliminated 1 st time low power rejects Increased 2 nd pass yield rate to 100% Total labor avoidance of 6831 man-hours per year Total cost avoidance with a 75% 1 st pass yield and a 100% 2 nd pass yield of $1.8M per year

15 Navy Marine Corps Rotary Wing Center NMRWC BRAC 2005 directed stand-up of R/W centers at Huntsville and Pax NAVAIR/NAWC leadership approved implementation December 07 Goal: Better support for and improved focus and alignment of helo and tilt rotor programs Intent: Work across DOD / industry / Govt. / academia boundaries to coordinate, align and focus rotary wing RDAT&E efforts

16 A Call to Arms Teaming Lean Processes Opportunity for Innovation The 80 percent solution Industry doing the right thing The Fleet needs your help today