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OSU Center for Innovation and Economic Development, Inc.
Overview Briefing
Mr. Thomas Gray, Vice President for Economic Development
Dr. Glenn Freedman, Vice President for Programs and Research
Mr. Bob Goodloe, Program Manager and Manufacturing Economic Development Specialist
Oklahoma Production Integration Network ( (OPIN)
Keeping America Secure and the Warfighter Prepared
OSU Center for Innovation and Economic Development, Inc.
Agenda
1. Overview: OSU-Enterprise Center, LLC and OPIN
2. Problem Addressed: Obsolescence, Business Model and the Manufacturing Network
3. Solution - How the Network Operations: Problem Part Solutions/Sourcing; Web Based Support; Part Categories/Capabilities; Manufacturing Support; Past Performance; Economic Impact
4. Moving Forward: Contract Opportunities; Contract/Part Needs (MICAPs); Contact Information; Next Steps
Winning the War Against Obsolescence. Reducing Costs.
OSU Center for Innovation and Economic Development
Adapted from Richard Lester, Industrial Performance Center MIT, 2004
•Front Edge science and engineering research•Technology licensing
•Business start-ups•Business-University partnerships
•Industry identity Standard setting
PR and image building Conferences, workshops
Entrepreneur Forums
•Technical assistance for subcontractors, suppliers•Education/ manpower development
Responsive curriculaIncentives and Partnerships
•Bridging among disconnected actors•Filling ‘structural holes’
•Creating and ‘industry identity’•Investments and Loans
•Community Building
•Problem Solving through research, consulting, …•Education/workforce development
•Global best practice•Foresight exercises; Scenarios
•Convening User-Supplier forums
Creating Recruiting / Diversifying Current UpgradingNew Industries Expanding Industries into Related Current Industries (I) Industries (II) New Ones (III) (IV)
Enterprise Center LLCTechnology Transfer
Education and Training
Winning the War Against Obsolescence. Reducing Costs.
Problem: USA’s Parts Obsolescence Challenge
• Military systems can have a life-cycle of 20 to 60+ years, with the systems often outlasting the component parts.
• DoD’s reg’s. and long developmental lead times reduce incentives for many manufacturers, plus DoD needs relatively few pieces of many varied items on a short turnaround.
• The decrease in component availability is called DMSMS: Diminishing Manufacturing Sources and Materials Shortages.
• Lifecycle costs soar, with parts being increasingly expensive, harder-to-find, and harder to produce.
DMSMS affects mission readiness, costs,
inventory availability, safety and security.
Winning the War Against Obsolescence. Reducing Costs.
The OPIN Business Model
TDP?No
Yes
ReverseEngineering to
Create TDP
Request for Quotes
Best Quote: C4 TestCapability
Certification/Qualification
CostCapacity
Parts CustomerContractingProduction
Part NeedIdentified
Winning the War Against Obsolescence. Reducing Costs.
TDP List
Road Map for TDP Development
Pursue Bid
Package
Request Part For RE
• Low Demand Parts
• Quantify- Type- Numbers
• Advanced Planning - Technology/ Parts
- Forecasting - Impact
Yes
TDP Needs/ Requirements
Manufacturing Requirements
Matrix
SelectManufacturer
Manufacturer Capability
Matrix
RFQFrom Mfg
Research TDP for : Serviceable on hand Back orders Quantity due in Demand rate
Issue P.O.Monitor
Deliver TDPMonitor RFQ
ForwardQuote To
Buyer
Validate Part List
QuoteAcceptable
Reject
NO
ROADMAP: 0307
PROCESS ARRAY1. Buyer Supplies Requirements and Parts2. Roadmap To Develop (Tech Insertion) Parts3.Determine TDP/Bid Package Needs4.Access Production Needs5. Obtain Quote From Manufacturer6. Buyer Handoff and Monitoring7. Post Parts on E MALL
Parts Roadmap
Winning the War Against Obsolescence. Reducing Costs.
The Manufacturing Network
OPIN: Ten Steps to Success
JobsCapital
1. OPIN Contact 2. Introduction3. Audit
4. Certification 5. Database Designations
6. Workforce Development Plan 7. RFQ Capabilities
8. Bid
s
9. Partnerships/Teams 10. Assessment
Winning the War Against Obsolescence. Reducing Costs.
From ASSET to OPIN
Economic Outcomes: Examples
ASSET 2002 2006*
Companies Served
70 202**
Investment $2.4 M $12+ M
New Jobs 142 350
New Contracts $1.2 M $13 M
Note: • * 75 DoD Source
Approved; Receiving Contracts
• * 69 DoD Source Approved; Awaiting Contracts
• **130 Actively Pursuing Source Approval
Winning the War Against Obsolescence. Reducing Costs.
Problem Parts Solutions/Sourcing
• 1560, 1650, 1660, 1680, 2510, 2530, 2815, 2840, 2910, 2995, 3020, 3070, 3110, 3120, 4420, 5120, 5330, 5340, 5355, 5950, 5995, 6150
• Complete list/specifics located at:
http://asset.okstate.edu/
Winning the War Against Obsolescence. Reducing Costs.
Example #1: B-1’s Connecting Link – BearingStock #: 3040-01-531-1949
Context: Last Part Produced in 1987; No Procurements Since; No Spares;PDM is Limited to Repair; Exotic Material; 4 per Aircraft
History: DLA Requests Bids: 1Q 2006 – Only 1 Response – Us! No Spares to Use to Reverse Engineer and Spec – then, B-1 Grounded in Diego Garcia in February 2007
Status: Reverse Engineer; Bid
Winning the War Against Obsolescence. Reducing Costs.
Example #2: B-1’s Vaneaxial Fan AssemblyStock #: 4140-01-209-4215
Honeywell:
OEM - $23,232.86
DLA-Tinker
OPIN-Tinker
Housing Rebalance and Repair
$7,981.82 $3,500.00
Rotary Repair 1,900.26 750.00
End Bell Repair 710.27 350.00
Totals $10,592.35 $4,600.00
Winning the War Against Obsolescence. Reducing Costs.
OPIN is end-to-end service: from
identification of problems to life-long support and an early
surface-and-solve approach..
OPIN is outcomes-driven: better,
cheaper, faster, friendlier.
OPIN is a system: a clear linking of all
assets and people to accomplish a mission – over the long-term.
OPIN is globally competitive: less waste,
less unwanted variability, more
nimbleness
Why the Network Works
OSU Center for Innovation and Economic Development, Inc.
Contact InformationOklahoma State University
CIED
505 N. Main St.
Stillwater, OK 74074
405-744-2325
Glenn Freedman, Ph.D. VP-CIED Programs and
Research
OPIN Leadership Team
Bob GoodloeProgram [email protected]
John Gwin Electronics [email protected]