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Foreword 1 Measuring DMSMS Appendix D 46,Program Effectiveness 25 Glossary. Introduction 2 Cost 25,Appendix E 49,Schedule 31,Basis for DMSMS Assessment of DMSMS. Performance 32 Solution Alteratives,Mitigation 4,TLCSM Tenets 4 Summary 37 Appendix F 51. PBL Tenets 5 Examples of Contract,Appendix A 38 Language. DMSMS Program DMSMS Related Documents,Guidance 7 Appendix G 53.
DMSMS Program Levels 7,Appendix B 39 Design Interface. Web Based Resources Assessment Criteria,DMSMS Resources 11. Keys to a Successful DMSMS Appendix C 41 Appendix H 55. Management Program 13 Best Practices for Abbreviations. DMSMS Program Elements 16 Obsolescence Management,of COTS Products. Potential Solution Approaches,to DMSMS Problems 20. This guidebook on Diminishing Manufacturing Sources and Material Shortages. DMSMS is a compilation of the best practices from across the Department of. Defense for managing the risk of obsolescence for electronic electrical and me. chanical parts In addition it identifies various tools that may be useful for analyz. ing and tracking the effectiveness of DMSMS programs. We recommend that the program manager use this guidebook as a desktop refer. ence to quickly pinpoint key actions required to manage DMSMS issues and ad. dress concerns Additional information can be found at the DMSMS Knowledge. Sharing Portal www dmsms org, If you have any questions or comments about this document please contact the.
Defense Standardization Program Office at 8725 John J Kingman Road Stop. 5100 Fort Belvoir VA 22060 6220 or e mail DSPO dla mil. Gregory E Saunders,Defense Standardization Program Office. Introduction, Diminishing Manufacturing Sources and Material Shortages DMSMS the loss of sources of. items or material surfaces when a source announces the actual or impending discontinuation of. a product or when procurements fail because of product unavailability DMSMS may endanger. the life cycle support and viability of the weapon system or equipment. Compared with the commercial electronics sector the Department of Defense DoD is a. minor consumer of electrical and electronic devices While the electronic device industry aban. dons low demand older technology products DoD seeks to prolong the life of weapon sys. tems These conflicting trends cause DMSMS problems as repair parts or materials disappear. before the end of the weapon system life cycle While electronics are most likely to be discon. tinued obsolescence of nonelectronic and commercial off the shelf COTS items also poses a. significant problem to weapon systems In short DMSMS is a threat to system supportability. Solving DMSMS is complex data intensive and expensive You the program manager PM. have only two approaches to solving DMSMS in a system reactive you address DMSMS prob. lems after they surface and proactive you identify and take steps to mitigate impending. DMSMS problems DoD policy prescribes the proactive approach. An effective DMSMS program does the following, Ensures that all parts and material to produce or repair the system or equipment are. Reduces or controls total ownership cost TOC, Minimizes total life cycle systems management TLCSM cost. Eliminates or at least minimizes reactive DMSMS actions. Evaluates design alternatives, Provides for risk mitigation as it applies to DMSMS.
Evaluates more than one approach to resolve DMSMS issues. Collects metrics to monitor program effectiveness, To achieve an effective DMSMS program you should consider adopting the common prac. tices and tools described in this guidebook These practices and tools were drawn from various. DoD organizations that have successful DMSMS programs This guidebook is not limited to. any particular type or class of manufacturing sources or material shortages. The purpose of this guidebook is fourfold, Define a proactive DMSMS management process that a PM can use to build an effective. DMSMS program, Define DMSMS support metrics to measure the effectiveness of a proactive DMSMS. Promote cost effective supply chain management integrity through DMSMS problem. solution at the lowest cost time functional level, Promote the exercise of best practices throughout the DMSMS management cycle. Basis for DMSMS Mitigation, DoD Directive 5000 01 The Defense Acquisition System addresses both TLCSM and per.
formance based life cycle product support PBL in the weapon system life cycle and requires a. focus on sustainment early in the life cycle Both TLSCM and PBL relate to DMSMS mitigation. TLCSM deals with obsolescence as one of the cost drivers in the system life cycle More. specifically TLCSM is the implementation management and oversight by the PM of all. activities associated with the acquisition development production fielding sustainment. and disposal of a DoD weapon system across its life cycle It empowers you as the life. cycle manager with full accountability and responsibility for system acquisition and fol. low on sustainment, PBL is the preferred sustainment strategy for weapon system product support It employs. the purchase of support as an integrated affordable performance package designed to. optimize system readiness, The relationship between DMSMS TLCSM and PBL was emphasized by the Deputy Un. der Secretary of Defense for Logistics and Materiel Readiness in a March 2007 memorandum. Life Cycle Sustainment Outcome Metrics That memorandum described 14 life cycle sus. tainment LCS enablers that when appropriately addressed positively impact the Material. Readiness LCS outcomes PBL is enabler number one and DMSMS is number nine. The DoD Acquisition Technology and Logistics enterprise is concerned with creating reli. able and cost effective industrial capabilities sufficient to meet strategic objectives and with im. plementing improved governance and decision processes These aspirations relate directly to. DMSMS efforts An efficient proactive DMSMS management process is critical to providing. more effective affordable and operational systems by identifying and mitigating DMSMS issues. that affect their availability and supportability This DMSMS management is in line with. TLCSM and PBL tenets,TLCSM Tenets, TLCSM increases the significance of design for system reliability availability maintainability. manufacturability and supportability The inherent objective of TLCSM is to enhance the. warfighter s capability through the improved system operational effectiveness SOE of new and. fielded weapon systems SOE is a composite of performance availability process efficiency and. total ownership cost You can best achieve the objectives of the SOE concept by influencing. early design and architecture The warfighter s capabilities are maintained by focusing on system. design for operational effectiveness and proactive DMSMS initiatives. Reliability reduced logistics footprint and reduced system TOC are most effectively achieved. when you include them as drivers from the very beginning of a program starting with the defi. nition of required capabilities Reliability maintainability supportability and producibility are. components that affect availability The primary objective of design for system supportability is. to positively affect and reduce the requirements for the various elements of logistics support dur. ing the system operations and maintenance phase One aspect of successfully accomplishing this. is by continually addressing DMSMS issues,PBL Tenets. PBL offers an effective way to deal with obsolescence throughout the life of a product Unlike. traditional approaches to modernizing legacy systems PBL holistically manages the support of. weapon systems assemblies subassemblies and components As the point of responsibility for. meeting performance requirements shifts to the product support integrator PSI under the. PM PBL provides a powerful tool for mitigating obsolescence and making continuous mod. ernization a reality for current weapon systems assemblies subassemblies and components. where a PBL application is feasible, PBL clearly fulfills the need for continuous modernization and obsolescence mitigation.
With PBL the PM rather than purchasing parts or products purchases performance via an in. tegrated product support package You can do this through a long term contract with a com. mercial entity or through a memorandum of agreement or understanding with an organic. support source Whether through a contract or some other vehicle the focus is on establishing. performance guarantees that ensure effective system support. For programs that adopt a PBL strategy you should have commercial providers via contract. instruments maintain a proactive DMSMS program Ideally PBL contracts are long term 5 to. 15 years and require the provider to manage many aspects of product support through the life. cycle The properly structured PBL strategy will include an incentive for the provider to be. proactive and manage DMSMS and obsolescence to achieve the required performance out. comes Long term PBL contracts lower provider risk and allow for DMSMS mitigation efforts. such as life of type LOT buys long term contracts with prime contractors long term con. tracts between primes and subcontractors and return on investment for redesigns. The PBL provider has the financial incentive to continuously improve performance because. of its bottom line impact, Optimized supply support reduces inventory investment and yields higher margins. Increased reliability of systems and subsystems and fewer failures or returns reduces. transportation labor and spare parts costs, Adoption of open system design increases the use of plug and play components that can. be renewed or replaced quickly, Continuous modernization extends the system s useful life. Continuously refreshed technologies increase the residual value of the systems subsystems. components and repair parts, To implement an effective PBL strategy you should be familiar with two key documents. Performance Based Logistics A Program Manager s Product Support Guide published by the. Defense Acquisition University DAU in March 2005, Designing and Assessing Supportability in DoD Weapon Systems A Guide to Increased Reliability.
and Reduced Logistics Footprint published by the Office of the Secretary of Defense OSD. in October 2003,DMSMS Prog ram Guidance,DMSMS Program Levels. DMSMS is a risk to the life cycle support and operational availability of weapon systems Effec. tive DMSMS management requires proactive solution of obsolescence problems before they ad. versely affect system availability or TOC Managing DMSMS risks follows a standard sequence. Identify Identify problem parts in the line replaceable units LRUs that are or will be in. the foreseeable future obsolete In a big weapon system identifying problem parts is a. monumental task Identifying DMSMS problems early and solving them the next three. steps in the process is the essence of a proactive program. Assess Considering the population of problem parts determine and prioritize the LRUs. most at risk for current and future DMSMS impacts, Analyze Research the problem parts in the high priority LRUs first and for each LRU. develop an optimum set of DMSMS solutions, Implement Budget fund contract for schedule and execute the solutions for the high. priority LRUs and then for the lower priority LRUs. Developing solutions for a few obsolete parts isn t too hard However implementing an ef. fective proactive DMSMS management program on a system such as the E 3 Sentry is daunting. and expensive, Common sense dictates that the level of DMSMS management practice cannot possibly be. the same for every weapon system program Therefore DoD recognizes a spectrum of four. DMSMS levels of intensity Each level represents a set of practices to mitigate the effect of. DMSMS The levels are defined as follows, Level 1 practices largely reactive sufficient to resolve known obsolescence problems.
Level 2 practices more proactive sufficient to mitigate the risk of future obsolete items. Level 3 proactive practices sufficient to mitigate the risk of obsolescence when there is a. high probability opportunity to enhance supportability or reduce TOC these proactive. activities may require additional program funding, Level 4 proactive practices implemented during the conceptual design of a new system. and continued through its production and fielding, Table 1 identifies the set of practices for each intensity level each higher level includes the. practices of all lower levels, Table 1 DMSMS Mitigation Practices for Each Intensity Level. Intensity Level 1 Intensity Level 2 Intensity Level 3 Intensity Level 4. DMSMS program All Level 1 practices All Level 2 practices All Level 3 practices. established and funded implemented implemented implemented. DMT formed BOM processed DMSMS life cycle costs Technology road. through a predictive and cost avoidance mapping used. tool estimates developed, DMT trained in Results of predictive DMT trained in System upgrades. DMSMS fundamentals tool output analyzed DMSMS essentials planned. and DMSMS case studies,DMSMS for executives and,advanced DMSMS.
DMSMS program plan DMSMS solution data Technology, written and approved base established transparency attained. Complete BOM developed Budget established Funding shortfall and Accessibility realized. with periodic reviews to fund future impact identified and for alternate source. planned to keep it current obsolescence solutions communicated to decision development VHDL. makers emulation MEPs, Solutions to near term Website established For legacy systems. obsolescence problems DMSMS tasking and data,implemented requirements included in. applicable contracts, For new acquisitions Method established to Circuit design guidelines. DMSMS tasking and data prioritize LRUs WRAs established. byproducts inserted in the for DMSMS risk,development production.
or support contracts,Technology assessment,and insertion under way. DMSMS metrics,establisheda,Electronic data interchange. Notes BOM bill of materials DMT DMSMS management team LRU line replaceable unit MEP. Manufacturing Extension Partnership VHDL VHSIC Very High Speed Integrated Circuit Hardware Description. Language WRA weapons replaceable assembly, Metrics include number of cases number of solutions implemented life cycle costs and cost avoidance. Selecting DMSMS Mitigation Practices for Your Program. Consideration and selection of DMSMS management practices may follow a trigger event. that convinces the PM that something needs to be done about obsolescence An example trig. ger is a no bid on spare circuit cards because of obsolete microcircuits or concerns from. DMSMS induced depot maintenance delays, The logic of Figure 1 will help you select an appropriate intensity level for your program. Figure 1 Logic for Selecting Intensity Level,Select Common Practice.
Parts Issues System Age, Chronic DMSMS Yes Intensity Level 4 Yes New Development. Problems Practices, 20 of Parts Yes Intensity Level 2 or 3 Yes 20 Years Remaining. Unsupportable Practices in System Life Cycle, 10 20 of Parts Yes Intensity Level 2 or 1 Yes 10 20 Years Remaining. Unsupportable Practices in System Life Cycle, 10 of Parts Yes Intensity Level 1 Yes 10 Years Remaining. Unsupportable Practices in System Life Cycle, You also should consider the complexity of the program available resources management.
philosophy and acquisition life cycle phase For example a program entering the technology. development phase may be able to plan for the incorporation of Level 3 practices in the request. for proposals for the system development and demonstration phase However a program in the. operations and support phase may not be able to afford to convert all the drawings into an. Electronic Data Interchange format, Over time you may be able to increase the intensity level of your DMSMS mitigation prac. tices to increase cost avoidance and further reduce the risk of obsolescence. The Customer s Perspective on Level of Practice, The customer s government program office s perspective on DMSMS management is usual. ly How do I protect myself Although cost is a valid consideration your focus should be on. instituting proper planning mechanisms to address future DMSMS problems Current DoD. DMSMS management efforts range from no program awareness of DMSMS to proactive. DMSMS programs The proactive programs generally use Level 1 and Level 2 DMSMS mitiga. tion practices focusing on resolving DMSMS problems For the most part these programs are. under the purview of the logistics team with little or no program management support To im. plement Level 3 and Level 4 practices successful organizations will have to reach beyond. DMSMS damage control and focus time energy and resources on implementing a fully proac. tive approach to minimize if not eliminate future DMSMS problems Although the cost of im. plementing such a program will be high the cost of failing to do so will likely be far higher In. short the customer will have much better support at lower cost if it has a proactive DMSMS. program to monitor the health of new systems e g technology refresh insertion and to iden. tify any part availability issues early in the acquisition process. The Supplier s Perspective on Level of Practice, The supplier s contractor s perspective on DMSMS management represents a dichotomy. How do I do the right thing add overhead cost and maintain a competitive edge lower. overhead cost The primary objectives of any commercial entity are to keep costs down and. increase profits but implementing Level 4 DMSMS practices requires the supplier to expend. time and manpower resources Convincing the supplier to expend those resources requires. helping the supplier s senior management to recognize the conditions under which DMSMS. avoidance management is good business For example applying DMSMS avoidance techniques. to products makes them more attractive to buyers by reducing projected TOC This lowered. TOC may be beneficial to the supplier when the product has a high margin high volume sales. potential In a competitive environment it will enhance the probability of winning Even under. sole source conditions using DMSMS avoidance techniques is a defensive strategy against fu. ture competition In general having an effective DMSMS program may pave the way for in. creased sales and profits on other DoD contracts, Implications of Level of Practice for Source Selection. The customer is concerned with the initial acquisition cost and TOC In contrast the supplier. generally is not concerned with TOC because it does not need to deal with the long term. storage and warehousing costs associated with post deployment sustainment However the sup. plier is concerned with the perception of higher acquisition cost introduced by DMSMS avoid. ance costs This means that projected TOC based in part on costs incurred to implement. proactive DMSMS management in the beginning and on DMSMS costs avoided in the fu. ture should be an evaluation factor in the source selection process This factor will provide an. incentive for the seller to spend money up front in development and production In turn this. consideration ensures both long term savings and supportability of the equipment This ap. proach will require both the customer and the supplier to accept the basic annual investment. costs software support travel website of implementing Level 3 DMSMS mitigation practices. and to recognize that implementing these practices during the life cycle should lower the pro. jected and actual TOC In other words the inclusion of DMSMS avoidance practices comes at. a cost but that cost is offset by,increased sales for the supplier.
decreased TOC for the customer and, possibly increased revenue from PBL award fee targets on supply or availability. performance,DMSMS Resources, Many policy documents training courses and other sources of information are available on the. DMSMS discipline In addition some locations Tinker Air Force Base OK and Warner Robins. Air Force Base GA to name two have resident subject matter experts in DMSMS. Appendix A lists key documents applicable to the DMSMS discipline One particular docu. ment with which you should be familiar is MIL STD 3018 Parts Management which pro. vides for the implementation of an effective parts management program on DoD acquisitions. Parts management is a design strategy that seeks to reduce the number of unique or specialized. parts used in a system in order to enhance standardization reliability maintainability and sup. portability This strategy also minimizes parts obsolescence due to DMSMS MIL STD 3018. requires a parts management plan describing procedures for obsolescence management those. procedures must include proactive obsolescence forecasting for applicable part types and plans. for reacting to and resolving obsolescence issues In other words the parts management plan. provides the process for the initial screening for DMSMS issues of parts to be used in the de. sign or modification of a system DMSMS risk mitigation is one facet of the larger process of. parts management, If you are new to the DMSMS discipline you should consider taking advantage of courses. available through DAU,LOG 102 Sustainment Management Fundamentals. LOG 204 Configuration Management,LOG 235 Performance Based Logistics.
CLL 201 DMSMS Fundamentals continuous learning module. CLL 202 DMSMS for Executives continuous learning module. CLL 203 DMSMS Essentials continuous learning module. CLL 204 DMSMS Case Studies continuous learning module. CLL 205 DMSMS for Technical Professionals continuous learning module. Classroom versions of the DAU continuous learning modules are available through the DoD. DMSMS Working Group, In addition to the courses DAU maintains a Logistics Community of Practice for sharing in. formation about DMSMS obsolescence and continuous modernization and a Systems Engi. neering Community of Practice for sharing information about open systems COTS items and. evolutionary acquisition, Several web based resources contain useful links to information on DMSMS management as. well as to useful tools One example is the DMSMS Knowledge Sharing Portal DKSP estab. lished by the Defense Standardization Program Office DSPO You can access the DKSP and. get help in proactively managing your DMSMS problems using its tools services and data Al. though the DKSP is still a work in progress DSPO has made great strides in setting up the. website and populating it with relevant DMSMS information links training and other infor. mation Portions of the site allow unrestricted access while other portions are password pro. tected The restricted sections of the site require you to be a Government Industry Data. Exchange Program GIDEP user see how to register for GIDEP at www gidep org The. DKSP can be accessed by government and contractor personnel as authorized Information on. how to access the restricted portions is available at the site Visit this website for more informa. tion www dmsms org, Attending the annual DMSMS conference is a must for anyone working in this discipline. particularly if you are new to DMSMS management, Appendix B lists other important DMSMS related web based resources. Keys to a Successful DMSMS Management Program, For a DMSMS program to be successful several elements must be in place.
Management support buy in or commitment,DMSMS management team DMT. Predictive tools,Accurate bills of materials BOMs,Financial resources. Support from Management, Management buy in commitment is crucial to a successful DMSMS program The interest of. senior leaders will ensure that the various supporting disciplines engineering logistics manage. ment contracting will work with the DMSMS program One method for securing the neces. sary commitment from managers of both the customer program office and the supplier is to. ensure that clear contractual language delineates roles and responsibilities. Another aspect of management involvement deals with the organizational level at which. DMSMS should be managed Efficiencies can be realized by monitoring DMSMS at the high. est level of commonality That means common items those not unique to a system should be. managed at the DoD level in order to leverage volume which in turn will lower unit cost and. potentially extend the life cycle This will also reduce redundancies in finding and fixing prob. lems for like items In contrast identifying problem parts and finding supply solutions at any. lower level for example depot or program is likely to be less effective. DMSMS Management Team, A program can best attain DMSMS objectives by establishing a DMT The DMT s composition. will depend on the program situation and could include any combination of disciplines man. agers engineers technicians logisticians and other skill types and organizations including. support contractors original equipment manufacturers OEMs prime contractors and other. government organizations such as the Defense Supply Center Columbus DSCC or Defense. MicroElectronics Activity The DMT should develop a written plan for and guide the DMSMS. program The team will need to be supported with adequate resources to ensure success. Predictive Tools, The primary goal of a DMSMS program is to find and document problems in Problem Part.
Reports PPRs and then to solve those problems Good predictive tools can help you achieve.

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