Northrop Grumman Ship Systems 14th annual International Integrated Program Management Conference Washington D.C.

1. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. November 2002

2. AGENDA Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • Overview of Northrop Grumman Ship Systems • Engineering & ILS Program Labor • Progress/Earned Value/BCWP • Design Engineering EVMS Applications • LHD 5 & 8 • DDG 51 Class • Composite Fabrications November 2002

3. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. Ship Systems Overview Northrop Grumman Ship Systems (NGSS), headquartered in Pascagoula, Mississippi was formed on August 1, 1999. It includes Ingalls Operations (Pascagoula), Avondale Operations in New Orleans and Tallulah Louisiana, and Gulfport, Mississippi. NGSS currently employs more than 17,000 shipbuilding professionals and is one of the nation’s leading full service systems companies for the design, engineering, construction and life cycle support for U.S. Navy and commercial surface ships. NGSS has a funded backlog exceeding $8.0 billion, in a variety of naval and commercial shipbuilding programs. November 2002

4. Ship Systems Overview Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. AVONDALE OPERATIONS INGALLS OPERATIONS November 2002

5. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. NewportNews November 2002

6. Major Budget / Cost Categories - Labor Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. LABOR INDIRECT DIRECT CONTROLLED BY OVERHEAD ACCOUNTS AND COST CENTERS VESSEL LABOR (SHIP/CRAFT) PROGRAM LABOR (DIRECT SUPPORT) IDENTIFIED BY CONTRACT, SHIP, CWBS, C/C, ACCOUNT AND WORK PACKAGE (BILL #) IDENTIFIED BY CONTRACT, CWBS, C/C, ACCOUNT AND WORK PACKAGE (MWP) WELDING ENGINEERING FITTINGS PROGRAMS MANAGEMENT PAINTING PRODUCTION PLANNING OUTFITTING PRODUCTION CONTROL ETC. ETC. November 2002

7. LHD Program Value By Category Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. November 2002

8. Program Engineering Systems Engineering Field Engineering Naval Arch/Elect Noise, Shock & Vibration Control Engineering Test and Evaluations Trials Marine Technical 3D Detail Design 2D Design Numerical Controls & MFG Aids Electrical Technical Electrical Design Combat Systems Technical Combat Systems Test Weight Control Engineering Configuration Mgt. Engineering R & D EngineeringFunctions Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. November 2002

9. ILSFunctions Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • Reliability, Maintainability & Quality • Maintenance & Provisioning • Inventory Mgmt & Allowance • Config. Data Mgt./Life Cycle Mgt. • Eng. Technical Publications November 2002

10. Progress /Earned Value :BCWP Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • EVMS Provides Engineering Supervision a Weekly Detailed Progress Report Bill Listing • Management Uses this Report to Evaluate the Overall Progress and Performance of the Task • Discrete Physical Progress • Apportioned Effort • Level Of Effort • Progress is Updated Weekly November 2002

11. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. Design Engineering Earned Value Applications • LHD5 Modification • LHD8 Redesign • DDG 51 Class - Flight IIA • Composite Fabrications November 2002

12. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. LHD Program November 2002

13. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. LHD5 Modifications (April 1992) • First Drawing Level earned value application • Initiated by Ingalls & approved by Navy • Reported to First Line Engineering Supervisor • Budget reconciled to Work Packages • Progressed weekly • Progress input to monthly CPR November 2002

14. LHD 5 Lessons Learned Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • Drawing Work Packages are too detailed • Focus on category of work vs. organization • Good planning tool for Engineering Managers November 2002

15. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. LHD8 Application A ‘Two-Tier’ System • Use local PC files to track individual models & drawings • Summarize to Work Packages for EVMS • Identify Work Packages to Category • Maintain Supervisor visibility • Ensure budget reconciliation • Continue to progress weekly November 2002

16. Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. DDG 51 Program DDG 51 Program – The ARLEIGH BURKE Class Aegis Destroyers November 2002

17. DDG 51 Class Flight IIA Design Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • Engineering Work Packages by ship zone • Joint reporting with Bath Iron Works (BIW) to NAVSEA • Weekly progress, cost updates & reporting November 2002

18. Composite Fabrications Northrop Grumman Ship Systems14th annual International IntegratedProgram Management Conference Washington D.C. • Carderock Naval Surface Warfare Center • Joint project with Ingalls Facility, and Avondale Facility(Gulfport, MS) • EVMS tracking Engineering & Manufacturing • Shared Drive file showed all Work Packages and was updated weekly for progress and cost November 2002