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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. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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Page 1: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 2: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 3: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 4: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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.

Page 5: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 6: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 7: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 8: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 9: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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/

Page 10: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 11: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 12: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

Page 13: OSU Center for Innovation and Economic Development, Inc. Overview Briefing Mr. Thomas Gray, Vice President for Economic Development Dr. Glenn Freedman,

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

[email protected]

OPIN Leadership Team

Bob GoodloeProgram [email protected]

John Gwin Electronics [email protected]