This is knowledge worth sharing!
In his book, Diminishing Manufacturing Sources and Material Shortages, A Guidebook of Best Practices for Implementing a Robust DMSMS Management Program, Michael A. Heaphy, Jr, USA Director of Defense Standardization Program Office, writes:
A robust DMSMS management program is the most effective and efficient way to minimize readiness risk due to DMSMS issues, deliver better buying power and improve overall life-cycle management. DMSMS resolutions are based on the most cost-effective approach to managing the problem before operations are affected. The cost avoidance by being proactive can be substantial:
A contract was awarded to produce five low rate initial production lots for an Air Force lead joint program office. Unfortunately, the contract did not clearly require the contractor to proactively monitor and manage obsolescence effecting future production lots. While the contractor was contractually committed to delivering all units, the contractor had no contractual obligation to preserve future production capacity. This resulted in 19 different DMSMS contract actions that threatened the program office’s ability to successfully ramp up to full rate production quantities and cost $40 million to resolve.
The United States Government, US Army, suggests a 5 step process for DMSMS:
- Establish a team consisting of program managers, engineers, supply chain and inventory managers to advocate resilient designs and part selection.
- Together, identify and monitor at risk parts
- Asses resolutions, the programmatic data, availability and logistics
- Analyze the preferred resolution and the time and costs associated with it
- Implement resolution per a determined budget and a phase in process
While some of this may not seem feasible for your smaller businesses, it can be done. But more on that soon, in Part 2! Until then, may we all become more aware of the big picture, our intentions and actions, which we must take, to be successful in our work and more importantly… personally, in our lives and those around us.
