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Advanced Manufacturing Systems Design 1999 John W. Nazemetz Week 12 Discussion Session Discussion Topic: Virtual Enterprise Example November 9, 1999 Slide 2 1999 John W. NazemetzSlide 2 Computer Integrated Manufacturing Systems ADVANCED MANUFACTURING SYSTEMS DESIGN Week 12 Discussion Example Virtual Enterprise Slide 3 1999 John W. NazemetzSlide 3 Computer Integrated Manufacturing Systems An Example Virtual Enterprise SBIRE, Inc. -- Drumright, OklahomaSBIRE, Inc. -- Drumright, Oklahoma Slide 4 1999 John W. NazemetzSlide 4 Computer Integrated Manufacturing Systems Making Acquisition Activities A Virtual Enterprise Use Advanced Information Technology to Manage the Entire Life Cycle of the Weapons Systems.Use Advanced Information Technology to Manage the Entire Life Cycle of the Weapons Systems. Incorporate Logistics Support Technologies.Incorporate Logistics Support Technologies. Facilitate SMEs Operation in Emerging Commercial Environment.Facilitate SMEs Operation in Emerging Commercial Environment. Slide 5 1999 John W. NazemetzSlide 5 Computer Integrated Manufacturing Systems The Supply Chain and SBIRE Customer Order DLA Technical Data Bidders DLA Contract SBIRE Suppliers Subcontractors PRODUCT Slide 6 1999 John W. NazemetzSlide 6 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (1) SBIR Engineering - A Virtual PrimeSBIR Engineering - A Virtual Prime Initiates a response to an RFQ or solicitation. Operates with a coalition virtual partners, typically SMEs, in a collaborative manner to price and manufacture products. Slide 7 1999 John W. NazemetzSlide 7 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (2) SBIR Engineering - A Virtual PrimeSBIR Engineering - A Virtual Prime Provides non-reoccurring engineering services. Reengineers a product when necessary, monitors production, and ensures quality and contract compliance. The virtual partners are linked electronically to SBIRE through a virtual private network. Slide 8 1999 John W. NazemetzSlide 8 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (3) Legal IssuesLegal Issues Virtual =>Temporary No Legal Precedence Question of Liability Business Solicitation PracticesBusiness Solicitation Practices Commercial Governmental Slide 9 1999 John W. NazemetzSlide 9 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (4) Establishment of Critical Mass of CapabilitiesEstablishment of Critical Mass of Capabilities Establishing Virtual TeamEstablishing Virtual Team Capabilities/Capacity Qualifications Business Rules Slide 10 1999 John W. NazemetzSlide 10 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (5) BiddingBidding Complexity Model Rates Known to Virtual Prime Capacity Pre-negotiated Real Time Accept/Negotiate/Reject Cuts Administrative Lead Time Slide 11 1999 John W. NazemetzSlide 11 Computer Integrated Manufacturing Systems SBIRE - A Virtual Enterprise (6) Status ReportingStatus Reporting Heterogeneous Systems at Partners Standardized on Simple PDM Each Job Treated as Project Timeline and Flow Can Access PDM over Web Use OZ Roll up Capability Schedule Initiated Checks Event Predicated Changes Visibility to Customer Slide 12 1999 John W. NazemetzSlide 12 Computer Integrated Manufacturing Systems Prototype Part Examples SHOCK ABSORBER TUBE RETAINER ASSEMBLY, BRAKE RECOIL UNIT LINK ASSEMBLY, REAR ENGINE MOUNT SHIN SUPPORT, BOOM OPERATOR Slide 13 1999 John W. NazemetzSlide 13 Computer Integrated Manufacturing Systems Three Savings Examples Tube Orifice Support Strut Assembly/NLG ShockTube Orifice Support Strut Assembly/NLG Shock $1400/Tube, $28,250 Total Savings FairingFairing $4000/Fairing, $60,982 Total Savings Paveway Missile Extraction ToolPaveway Missile Extraction Tool $8300/Tool, $290,500 Total Savings Slide 14 1999 John W. NazemetzSlide 14 Computer Integrated Manufacturing Systems CATT Successes (1) Lowered Administrative and Production Lead-TimesLowered Administrative and Production Lead-Times Approximately 200 Oklahoma Firms Are Part of CATTApproximately 200 Oklahoma Firms Are Part of CATT 125 Are Qualified to Produce Parts for the US Government, Either Directly or Through a Virtual Enterprise SBIRE Companies, Inc. Has Been Awarded a $28M Contract As Part of a $1.5B AwardSBIRE Companies, Inc. Has Been Awarded a $28M Contract As Part of a $1.5B Award Slide 15 1999 John W. NazemetzSlide 15 Computer Integrated Manufacturing Systems Summary CATT/SBIRE Has Increased the DOD Supply Base by Using Innovative Business Processes and Information TechnologiesCATT/SBIRE Has Increased the DOD Supply Base by Using Innovative Business Processes and Information Technologies CATT/SBIRE Has Facilitated Parts Production by Developing and Implementing Innovative Logistics Support TechnologiesCATT/SBIRE Has Facilitated Parts Production by Developing and Implementing Innovative Logistics Support Technologies CATT/SBIRE Has Reduced Logistics Response TimeCATT/SBIRE Has Reduced Logistics Response Time CATT/SBIRE Has Demonstrated Cost ReductionsCATT/SBIRE Has Demonstrated Cost Reductions CATT/SBIRE Has Developed Technology to Provide Agility and ResponsivenessCATT/SBIRE Has Developed Technology to Provide Agility and Responsiveness Slide 16 Advanced Manufacturing Systems Design 1999 John W. Nazemetz Week 12 Discussion Discussion Topic: Virtual Enterprise Example November 9, 1999 END OF SEGMENT