A WEAK LINK TIGHTENED
supported the larger manufacturers have, in many cases, simply gone out of business. Tey were the vendors of aviation subcom- ponents and parts that supported the larger original equipment manufacturers and second-tier suppliers. Some of those smaller businesses had a tougher time meeting the challenges caused by the pandemic and all the ancillary problems that went with it.
If a rotorcraft part production line shuts down completely, the risk of it permanently going away is high and increases over time. It is critical to closely monitor the rotary wing industrial base at all levels. Investing in the preservation of drawings, bills of mate- rials, production processes, tools, special equipment, etc., is an absolute must to reduce that risk of having available components to maintain the readiness of the Program Executive Office (PEO) for Aviation’s fleet of aircraft and increase the probability that, if needed, the part can be rapidly produced in the future.
Tough the country is recovering, the problems associated with the supply chain still exist in varying degrees. Some recent exam- ples of supply chain challenges include inflation and the burden it places on some companies to absorb the increased cost of raw materials, shipping and energy. Other supply chain problems include minimizing foreign intrusion into the supply chain and onshoring critical manufacturing and raw materials. Tere will always be supply chain challenges, but the intent of the PEO Aviation industrial base team is to not only minimize the risk, but to understand it so that proactive measures can be taken to stay ahead of it.
THE PEO AVIATION APPROACH PEO Aviation has long recognized the need to manage industrial base issues. Te pandemic spurred the defense industrial base management efforts, and PEO Aviation leaders created a defense industrial base team from scratch.
Tere are over 3,000 vendors supporting the major platforms that are currently flown by the U.S. Army. Conducting analysis for the entire fleet was nearly impossible using traditional methods. PEO Aviation leveraged the latest in AI technology to assist in
quickly identifying areas of concern. PEO Aviation has partnered with two companies that utilize this AI technology to scrape the web for open-source data, along with subscription services (like Dun & Bradstreet) to provide quick feedback on vendors who may have a supply chain risk. Te defense industrial base team took that information and opened a dialogue with vendors to see if they were aware of the risk, and then worked on finding a way to mitigate this risk. It’s meant to be a team effort, with the ulti- mate focus of providing our warfighters with capable aviation platforms. Along with these tools, the industrial base team also focused on building an internal supply chain risk management process to augment the AI tools to help identify and mitigate potential supply chain risks. Te process the team uses is a hybrid approach of both human-in-the-loop analytic research, govern- ment databases and AI tools to reduce supply chain risk in PEO Aviation’s fleet.
Te defense industrial base spectrum of support is wide and multifaceted. PEO Aviation teamed with Govini, Exiger and the U.S. Army Combat Capabilities Development Command Aviation and Missile Center to help identify and mitigate supply chain risks within Army aviation. Te defense industrial base team conducted many types of analysis including vendor assess- ments and deep dives, inflation analysis, foreign risk analysis, industrial sector analysis, and assistance with contract language development among others. Te defense industrial base team has completed more than 120 projects in support of PEO Avia- tion supply chain risk management. Recent PEO Aviation supply chain risk management projects include analysis for critical raw material stockpiling, alternate part supplier analysis, foreign influence analysis and sub-tier supplier research. Larger projects include addressing shortfalls in domestic industrial base capac- ity and capability and Industrial Base and Sustainment Program projects, both of which strengthen PEO Aviation’s industrial base for both future and enduring aircraft.
One of the team’s most significant projects was assisting one of the PEO Aviation project managers to address a House Armed Services Committee industrial base capability and foreign
Investing in the preservation of drawings, bills of materials, production processes, tools, special equipment, etc., is an absolute must.
28 Army AL&T Magazine Fall 2023
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