Collaborative Commercialisation

Capability through collaboration

July 30, 2014

Collaborative Commercialisation

Defence+Industry Conference 2014

Mark Hodge - CEO

CAPABILITY THROUGH COLLABORATION

DMTC Operational Context

Mission:DMTC leads, facilitates and manages cooperative research in the defence sector in materials, manufacturing & related themes, with the Defence customer, industry and research sector as key stakeholders.

Strategic Intent:


Corporate Structure:Public Company. Not for Profit. Limited by Guarantee

Resources under management~$87M (incl. $30M DMO – Ind Div) over 7 years from July 2008 “Core”

~$23M (incl. $7.5M Land 125) over 5 years from Jan 2011 “Program 7”

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Vision: To provide technology solutions enabling industry to enhance Australian Defence capability.


Full Participants

3


Supporting Participants

4

http://www.secotools.com/en-AU/AU-Australia/Home/


Additional Client Organisations

5CAPABILITY THROUGH COLLABORATION


The Numbers

5 Programs across AIR, LAND and SEA Domains containing

34 Active Projects delivering new technologies and manufacturing processes

680 people directly involved in DMTC activities from 32 Participant organisations

$110 Million total resources on improving capabilityincludes $38M Defence - balance from Industry & Research sectors

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Defence R&D perspective

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Listen mate – I define the

requirements

Has to be small, lightweight &

99.99% reliable

• Driven by threat environment• Soldier-proof• Operational-requirement• Time critical (deployment)• Fieldable, modular, flexible

USERCan’t field it without ACIB endorsement

We need to risk mitigate –COTS,

MOTSThe next DCP funding window is 7 years away

I need to see the requirements

definition case

Best value = cheapest acquisition. Sustainment

challenges come later

Program Mgr

• Capability driver• Systems approach• Budget constrained• Acquisition strategy• Risk aware

S&T

I’ve been doing this for years – I don’t need

program management

Customer’s role is to integrate, commercialize

– I’ve moved on

If you push long enough, they’ll come around

You don’t get it- this project is unique – I

need more time, money

• Goal is maximum utility of tech.• Risk is inherent• Best case: cost, schedule estimate

Has to be best of breed.

Have to have it now.

My product can do everything

you need

I need security of contract to innovate

I need flexibility to work out the kinks

in my product

• Profit motive: no profit = no product

• Contract tenure/certainty• Needs S&T “as advertised”

INDUSTRY


Elements of a DMTC Program

Other Elements:

Balance between financial, capability and national security impacts

Appropriate balance between “R” and “D”

Natural progression of expertise from materials, manufacturing and related themes.

Appropriate balance in contributions: Cash & in-kind Defence & non-Defence

funds

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New Program

Defence priorities & timings

Industry capability & capacity

Research credibility, experience & expertise


Land Domain AchievementsIndustry/commercial impact of DMTC research is confirmed• Strong enthusiasm from Industry - proactive engagement

Integrated Power Generation and Storage• Fuel cell prototype demonstrated as having charging

capacity to reduce battery weight burden on a 72 hour

patrol by 75%

Soft Armour Fabric Design and production capability• Light weight neck and shoulder protection with snap on/off design developed

to augment tiered body armour system

Hard Armour technology now in procurement• DMTC B4C technology now integrated into body armour

• Cheaper, local manufacturing and design capability

• Next evolution of technology to support even better capability

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CAPABILITY THROUGH COLLABORATION 10

Cross Program Benefits

Bushmaster

Automated and rapid off-line programming for robot-on-robot production welding cell resulting in up to 70% savings in the time it takes to reconfigure automated assembly activities of armoured platforms.

Air Warfare Destroyer

Investment in new panel line utilising new DMTC technologies, resulting in:

- Increase in deposition rates- Reduction or elimination of plate

distortion- 10,000 hours of rework eliminates

per module


Program maturity

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Curved B4C armour

Monolithic lightweight armour shells

D4 pilot processing


Program maturity cont…

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Lightweight power

Titanium machining – how to guide

AOLP & automated welding suite


IP ManagementRobust Model – geared towards rapid utilisation of technology

Participants: Automatic, royalty-free & non-exclusive rights to project IP

Industry Participants• Generally not funded in projects• Benefit derived through greater competitiveness, supply-chain integration,

ability to commercially exploit IP

Research Participants• Receive bulk of funding for projects

• Are not permitted to commercially exploit IP

Restrictive Covenants:IP use is Field Limited & restricted to local entity only on royalty-free terms

Project Based

Minimum contribution required to trigger access13


Materials Producers

and Suppliers

Enabling Technologies

Component Manufacturers

Manufacturing Technology

Systems Integration

F-35 Joint Strike

Fighter

Supply Chain Collaboration Model

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11 Industry Participants

2 Research Organisations and 5 Universities:












Program linkage

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DMTC Project TRL Map

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Bulk of DMTC projects operate through mid-level TRL’s (TRL 3-4 up to around TRL 7-8) in the so-called “Valley of Death”

DMTC also conducts projects that feed directly into platforms and production linese.g. automated welding (Bushmaster)

DMTC conducts some fundamental research activities where required in order to support applied outcomes e.g. new material characteristics

“R” “D”Balanced Programs


SRL-TRL ProgressionS

yste

m R

ead

ines

s L

evel

Technology Readiness LevelImmature

Imm

atu

re

Mature

Ma

ture

5

5

Valley of death

Relevance, user a

cceptance,

Competitive edge, n

ational in

dustrial capability


SRL-TRL Progression

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Sys

tem

Rea

din

ess

Lev

el

Technology Readiness Level

Immature

Imm

atu

re

Mature

Ma

ture

7.1.1Ceramic plate

7.1.2Helmet

7.2.1Neck & Shoulder 7.4.1

Fuel Cell

7.4.3 EnergyHarvester

5

5

7.1.1Deltoid 7.4.2

DeakinEnergy Storage

7.4.2Deakin

Energy Harvesting

7.1.2Polymer Ceramics

7.3.1ImprovedFabrics

7.1.2Semi-rigid

7.2.1Uneven Weave

7.2.1Uni-axial

Managed Progression up to June 2013


Contributions

19

1 2 3 4 5 60

20

40

60

80

100

120

140

160

180

200

Industry Research

Industrial involvement increases with project maturity

Non-cash contributions (arbitrary units)


Thank you

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Mark Hodge – CEO

Level 2, 24 Wakefield Street Questions, discussionHawthorn, Vic 3122Australia

Email: [email protected]

Ph: +61 (3) 9214 4447

Fax: +61 (3) 9818 0622

mailto:[email protected]

Documents

Collaborative Commercialisation