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EQUIPPING TOMORROW'S MILITARY FORCE

Integration of Commercial and Military Manufacturing in 2010 and Beyond

Committee on Integration of Commercial and Military Manufacturing in 2010 and Beyond

Board on Manufacturing and Engineering Design

Division on Engineering and Physical Sciences
National Research Council


NATIONAL ACADEMY PRESS
Washington, D.C.



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Page i EQUIPPING TOMORROW'S MILITARY FORCE Integration of Commercial and Military Manufacturing in 2010 and Beyond Committee on Integration of Commercial and Military Manufacturing in 2010 and Beyond Board on Manufacturing and Engineering Design Division on Engineering and Physical Sciences National Research Council NATIONAL ACADEMY PRESSWashington, D.C.

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Page ii National Academy Press 2101 Constitution Avenue, N.W. Washington, DC 20418 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This study was sponsored by the Joint Defense Manufacturing Technology Panel, U.S. Department of Defense, under contract No. N00014–96-D-0301. The views and conclusions contained in this document are those of the authors and should not be interpreted as necessarily representing the official policies, either expressed or implied, of the U.S. government. International Standard Book Number 0-309-08316-8 Additional copies of this report are available from: National Academy Press 2101 Constitution Avenue, N.W. Box 285 Washington, DC 20055 800–624–6242 202–334–3313 (in the Washington metropolitan area) http://www.nap.edu Available in limited quantities from: Board on Manufacturing and Engineering Design 2101 Constitution Avenue, N.W. Washington, DC 20418 202–334–3124 bmaed@nas.edu Cover: Image across the middle is a close-up of a circuit board. Copyright 2002 by the National Academy of Sciences . All rights reserved. Printed in the United States of America

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Page iii THE NATIONAL ACADEMIES National Academy of Sciences National Academy of Engineering Institute of Medicine National Research Council The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M.Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr.Wm.A.Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr.Kenneth I.Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr.Bruce M.Alberts and Dr.Wm.A.Wulf are chairman and vice chairman, respectively, of the National Research Council.

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Page iv COMMITTEE ON INTEGRATION OF COMMERCIAL AND MILITARY MANUFACTURING IN 2010 AND BEYOND MICHAEL F.McGRATH, Sarnoff Corporation, Arlington, Virginia, Chair WALTER B.LaBERGE, Naval Postgraduate School, Aptos, California, Vice Chair ARDEN L.BEMENT, JR., Purdue University RADM PETER DeMAYO, Lockheed Martin Corporation (retired), Alexandria, Virginia GARY L.DENMAN, GRC International (retired), Pinehurst, North Carolina JOSEPH A.HEIM, Genie Industries, Redmond, Washington F.SUZANNE JENNICHES, Northrop Grumman Corporation, Linthicum, Maryland JAMES MATTICE, Universal Technology Corporation, Dayton, Ohio DAVID R.SMITH, Eastman Kodak Company, Rochester, New York ROBERT I.WINNER, R.Winner & Associates, Hopkinton, Massachusetts NRC Staff PATRICK J.DOYLE, Program Officer

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Page v BOARD ON MANUFACTURING AND ENGINEERING DESIGN JOSEPH G.WIRTH, Raychem Corporation (retired), Mt.Shasta, California, Chair F.PETER BOER, Tiger Scientific, Inc., Boynton Beach, Florida JOHN BOLLINGER, University of Wisconsin, Madison PAMELA A.DREW, The Boeing Company, Seattle, Washington ROBERT EAGAN, Sandia National Laboratories, Albuquerque, New Mexico EDITH M.FLANIGEN, UOP Corporation (retired), White Plains, New York JOHN W.GILLESPIE, JR., University of Delaware, Newark JAMIE C.HSU, General Motors Corporation, Warren, Michigan RICHARD L.KEGG, Milacron, Inc. (retired), Cincinnati, Ohio JAY LEE, United Technologies Research Center, East Hartford, Connecticut JAMES MATTICE, Universal Technology Corporation, Dayton, Ohio CAROLYN W.MEYERS, North Carolina A&T University, Greensboro JOE H.MIZE, Oklahoma State University (retired), Stillwater FRIEDRICH B.PRINZ, Stanford University, Palo Alto, California JAMES B.RICE, JR., Massachusetts Institute of Technology, Cambridge JOHN B.STENBIT, TRW, Inc., Fairfax, Virginia DALIBOR F.VRSALOVIC, AT&T Labs, Menlo Park, California JOEL SAMUEL YUDKEN, AFL-CIO, Washington, D.C. NRC Staff TONI MARECHAUX, Director ARUL MOZHI, Associate Director

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Page vi

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Page vii Preface As this report is being written, the United States and its allies find themselves attacked in a war of terrorism that vividly demonstrates the unpredictability and intensity of the threats that will challenge the credibility of U.S. national policy over the next decades. Although the specifics of this war were unforeseen, the Department of Defense (DOD) has been concerned for the past several years with the need for new kinds of flexible response capabilities and with the transformation needed for national security in a new global environment. Each military service has been vigorously embarked on a technology-based transformation of its strategy, tactics, and force structure to significantly increase its ability for near-instantaneous projection of overwhelming military power to distant areas of U.S. national interest. This National Research Council study, Equipping Tomorrow's Military Force: Integration of Commercial and Military Manufacturing in 2010 and Beyond, deals with a co-requisite to this transition— namely, the need to also transform the U.S. military-industrial production support base. Tapping into the strength of our commercial sector is a necessary element of any military strategy that relies on the ability to introduce new technology rapidly into operational use and on fast surge replenishment of weapons, spare parts, and other consumables vital to readiness and sustainability. It is also the only affordable path to keeping reasonably up to date with commercial technology advances. This report was requested by the DOD Joint Defense Manufacturing Technology Panel to identify trends and opportunities for DOD and defense prime contractors to make optimal use of the technology and flexible manufacturing capabilities emerging within the U.S. commercial sector. The study committee

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Page viii appointed by the NRC Board on Manufacturing and Engineering Design consisted of members with backgrounds in defense manufacturing processes and operations, weapons system design, industrial engineering, and commercial manufacturing processes and operations. In the course of its deliberations, the committee heard briefings from DOD personnel who participate in demonstrations of the integration of commercial and military manufacturing (ICMM), DOD acquisition managers and policy makers, and representatives of commercial firms that successfully integrate military and commercial business. The committee also reviewed numerous earlier reports on ICMM, a number of which are referenced in this report. The committee considered these reports and briefings as examples of successful experiences that can become part of the normal course of business in DOD. The committee believes that a great opportunity exists for DOD to capitalize on the availability in the next decade of flexible, highly automated commercial and dual-use production lines for subsystems and components. Commercial supply chains will routinely exchange Web-based engineering and business data that drive efficient automated parts and assembly processes. Much of the commercial technology will be useful, directly or with customization, for advanced weapons systems applications. Weapon systems integration will still be the responsibility of defense prime contractors in 2010. They will increasingly have to consider new trade-offs involving commercial parts, commercial tooling and practices, design for commercial manufacturing, and commercial product support and upgrades. However, these trade-offs will make optimal use of the commercial base if, and only if, today's barriers and disincentives are removed. What needs to be done to increase ICMM is well documented in earlier studies and in the examples cited in Chapter 3. One of the contributions this study hopes to make is to focus the attention of DOD decision makers and prime contractors on how to motivate and institutionalize needed implementation. Michael F.McGrath, Chair Walter B.LaBerge, Vice Chair Committee on Integration of Commercial and Military Manufacturing in 2010 and Beyond

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Page ix Acknowledgments The Committee on Integration of Commercial and Military Manufacturing in 2010 and Beyond would like to thank the following individuals for their presentations: Brench Boden, Wright-Patterson AFB; Jim Fallen, M/A-COM; Jacques Gansler, University of Maryland; Larry Griffin, consultant; LTG Paul Kern, U.S. Army; Steve Linder, Office of Naval Research; Fenner Milton, U.S. Army Night Vision Center; Spiros Pallas, Office of the Secretary of Defense; Lt.Col.Walter Price, U.S. Air Force; Herm Reininga, Rockwell-Collins; Stan Soloway, Deputy Under Secretary of Defense, Acquisition Reform; Jerry Thomas, SCI Systems; Joe Thomas, M/A-COM; Larry Trowel, General Electric Aircraft Engines; and Steve Werner, SCI Systems. This committee would also like to thank Leo Plonsky, Office of Naval Research, for his assistance during the study process. This report has been reviewed by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council's Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the authors and the institution in making the published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to the thank the following individuals for their participation in the review of this report: Rodica A. Baranescu, Navistar International Transportation Corporation, Richard L. Kegg, Milacron, Inc. (retired),

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Page x Michael Lippitz, consultant, Noel Longuemare, Principal Deputy Under Secretary of Defense, Acquisition and Technology (retired), James B. Rice, Jr., Massachusetts Institute of Technology, Phyllis Scales-Brown, U.S. Army Soldier and Biological Chemical Command (SBCCOM), Anne Marie Velosa, Beaverton, Oregon, and Jack White, Altarum Institute. Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations, nor did they see the final draft of the report before its release. The review of this report was overseen by James Solberg, Purdue University. Appointed by the National Research Council, he was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution. Finally, the committee gratefully acknowledges the support of the staff of the Board on Manufacturing and Engineering Design, including Patrick J.Doyle, Program Officer; Toni Maréchaux, Director, Board on Manufacturing and Engineering Design; and Arul Mozhi, Associate Director.

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Page xi Contents EXECUTIVE SUMMARY 1 1     INTRODUCTION 6     Statement of Task, 7     Study Methodology, 7     Definition and Scope, 8 2     A COMPELLING CASE FOR THE INTEGRATION OF COMMERCIAL AND MILITARY MANUFACTURING 10 3     CURRENT SUCCESSES IN THE INTEGRATION OF COMMERCIAL AND MILITARY MANUFACTURING 14 4     OPPORTUNITIES FOR FUTURE INTEGRATION 22     A Spectrum of Choices for Manufacturing Integration, 23     Integration Opportunities Enabled by Technology, 23     Commercial Product Technology Trends, 24 5     BARRIERS TO INCREASED INTEGRATION 30 6     EDUCATION AND TRAINING 36     Understanding the Commercial Marketplace, 37     A Commercial Acquisition Academy, 38     Attracting Commercial Suppliers, 39     Research and Technology for Commercial Buying, 39

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Page xii Contents 7     FINDINGS AND RECOMMENDATIONS 40     Findings, 41     Recommendations, 44     Discussion of Recommendations, 49 8     REFERENCES 52 APPENDICES     A     BIOGRAPHICAL SKETCHES OF COMMITTEE MEMBERS 57     B     BRIEFINGS 61     C     BACKGROUND AND HISTORY 63     D     ACRONYMS AND ABBREVIATIONS 68     E     MANTECH STATUTE 70