Network Centric Manufacturing Delivers First Quantifiable Results
One of the earliest tests of Network Centric Manufacturing (NCM) is beginning to deliver quantifiable cost and time savings for the U.S. Army. The project has been underway for less than six months and has already achieved impressive results, including:
- 36% average decrease in the effort required for suppliers to respond to a request for quote
- 58% average decrease in the time required for supplier production set-up
- Significant increase in the number of suppliers responding
This project has been so successful that the Army is accelerating production of the pilot part. The result is new orders to new suppliers that are secured through this process faster than those in the past. More important, the Army will be able to get equipment in the hands of the Warfighter faster.
Challenge
The ongoing conflicts in Iraq and Afghanistan are causing critical spare parts shortages in legacy weapons systems. The current means of creating and managing supply chains is inefficient. Identifying suppliers, sourcing and then manufacturing replacement parts is time consuming and costly. Coordinating multiple suppliers in a single supply chain exacerbates this problem. The Army had to find a better approach to meet the current demand and the looming demand of reset programs. Working with DSN Innovations, the Army developed a pilot program to address these issues.
Solution
The first step was to supplement the existing design information with manufacturing process information. The Army and DSN Innovations created a Manufacturing Process Data File (MPDF), which contained information about how to make a part. Information such as specific machines used, CNC code and even processes has been the "tribal knowledge" of the suppliers and recreated by each vendor responding to an RFQ. By creating, storing and reusing this information, the Army had more control over the quality and could more quickly source manufacturers.
The next step was to configure the supplier network by identifying suppliers that had the right equipment and processes that matched the MPDF. This step represented a fundamental shift from a "qualified supplier" to a "qualified process," which showed a dramatic reduction in time and cost. Another benefit was a significant jump in agility—the ability to quickly assemble and reconfigure the supplier network.
Once identified, suppliers had to be able to easily view all technical data, including the MPDF, regardless of their systems or software. This was accomplished using DSN Innovations' infrastructure software that allowed everyone involved to view and collaborate around any of the information, from detailed specifications to 3D models. The infrastructure handles ITAR compliance as well.
The Army also was looking to improve its decision-making when selecting a supplier. To accomplish this, DSN Innovations used the MPDF and a testing process that provided quantitative evidence of each supplier candidate's ability to meet the requirements. This gave the Army new information that made them a "smarter buyer," reducing risk and cost.
Summary
Network Centric Manufacturing is expected to significantly reduce costs and time for the Army to produce legacy parts. These results yield more agile supplier network, allowing the Army to react in a shorter period of time.
About DSN Innovations
DSN Innovations is a non-profit organization focused on bolstering U.S. manufacturing by improving supplier network agility, connectivity and visibility. Our solutions make it more efficient for large companies and the government to work with the U.S. base of small- to medium-sized manufacturers.