FY 2001-2002 Execution Plan and Risk Mitigation Strategies for Ammunition Production

1. Production Delinquencies Scott Welker AMSOS-PR (309) 782-7097 welkerd@osc.army.mil

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6. 6 of 12 Start FY 01 and FY 02 Execution

7. 7 of 12 FY 02 Execution PlanProjections 1st Qtr: Plan to complete $91M in orders - $70M Amber, and $29M Green. Plan to go up $9M in Red. $68M in orders changed from Amber to Red. 1st Qtr Actuals: $M Red, $M Amber, and $M Green 2d Qtr: Plan to complete $178M in orders - $37M Red, $75M Amber, and $66M Green. $67M in orders change from Amber to Red. 2d Qtr Actuals: 3d Qtr: Plan to complete $233M in orders - $107M Red, $54M Amber, and $71M Green. $53M in orders change from Amber to Red. 3d Qtr Actuals: 4th Qtr: Plan to complete $195 in orders - $249M Amber, and $145M Green. Plan to go up $198M in Red. $245M in orders change from Amber to Red. 1st Qtr: Plan to complete $91M in orders - $70M Amber, and $29M Green. Plan to go up $9M in Red. $68M in orders changed from Amber to Red. 1st Qtr Actuals: $M Red, $M Amber, and $M Green 2d Qtr: Plan to complete $178M in orders - $37M Red, $75M Amber, and $66M Green. $67M in orders change from Amber to Red. 2d Qtr Actuals: 3d Qtr: Plan to complete $233M in orders - $107M Red, $54M Amber, and $71M Green. $53M in orders change from Amber to Red. 3d Qtr Actuals: 4th Qtr: Plan to complete $195 in orders - $249M Amber, and $145M Green. Plan to go up $198M in Red. $245M in orders change from Amber to Red.

8. 8 of 12 Delinquencies by Customer ($M) FY01 & Earlier Orders

9. 9 of 12 Distribution of Delinquent (Red) Programs ($296M)

10. 10 of 12 Root Causes Identified

11. 11 of 12 Risk Mitigation There are several Risk Mitigation Strategies. 1. Criticals Initiatives - to correctly classify Critical Defects, and to prevent the manufacturing of these Critical Defects. 2. System Initiatives - C T C (CTC) and other �. Using more analysis � 3. TDP Expectations - to clearly identifying to the certifying agency, what we expect when we receive a Certified Technical Data Package (TDP). 4. Program Risk Assessment - to providing analysis and recommendations on the most efficient use of the industrial complex to support goals and objectives for each ammunition commodity. 5. Quality Assurance (QA) Foundation - to establishing common policies and procedures; assure trained Headquarters and Plant Staff; establish clear expectations of Contractors , DCMA, and Installations; establish audit capability that is prevention-oriented, and grow our �next generation� of QA Specialists. 6. Program Reviews - to look at problems occurring during program execution, and assessing the impact of those problems on other programs that are being planned or executed. 7. Journey to Excellence - to identify Key Performance Characteristics of the item, and the Key Manufacturing Processes that will have an impact on performance; focus on Variation Reduction where it matters most; to reduce ammunition lot-to-lot and item-to-item variation to the point that ammunition has no contribution to Weapon System performance variation; and, to establish a disciplined process for decisions and lessons learned - making the information available and visible to all. All of these Risk-Mitigating Strategies have the purpose of improving our ability to Deliver Safe Quality Ammunition On-Time.There are several Risk Mitigation Strategies. 1. Criticals Initiatives - to correctly classify Critical Defects, and to prevent the manufacturing of these Critical Defects. 2. System Initiatives - C T C (CTC) and other �. Using more analysis � 3. TDP Expectations - to clearly identifying to the certifying agency, what we expect when we receive a Certified Technical Data Package (TDP). 4. Program Risk Assessment - to providing analysis and recommendations on the most efficient use of the industrial complex to support goals and objectives for each ammunition commodity. 5. Quality Assurance (QA) Foundation - to establishing common policies and procedures; assure trained Headquarters and Plant Staff; establish clear expectations of Contractors , DCMA, and Installations; establish audit capability that is prevention-oriented, and grow our �next generation� of QA Specialists. 6. Program Reviews - to look at problems occurring during program execution, and assessing the impact of those problems on other programs that are being planned or executed. 7. Journey to Excellence - to identify Key Performance Characteristics of the item, and the Key Manufacturing Processes that will have an impact on performance; focus on Variation Reduction where it matters most; to reduce ammunition lot-to-lot and item-to-item variation to the point that ammunition has no contribution to Weapon System performance variation; and, to establish a disciplined process for decisions and lessons learned - making the information available and visible to all. All of these Risk-Mitigating Strategies have the purpose of improving our ability to Deliver Safe Quality Ammunition On-Time.

12. 12 of 12 FY 02 Funds for Procurement of Ammunition by Service - $2,528,508DMA Portion by Service � Approximately $851(in Millions)

13. Principal Delinquent DODICsAs Of 31 Dec 2001List represents 73% Undelivered Red Dollars

14. Principal Amber DODICsAs of 31 Dec 2001List Represents 82% of Undelivered Amber Dollars