Capability Through Collaboration
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1 Capability Through Collaboration Success Factors in creating a capable ADF Capability Capability through collaboration through collaboration Mark Hodge CEO October 2017
2 DMTC Operational Context Vision: To provide technology solutions enabling industry to enhance Australian Defence and national security capability. Mission: DMTC leads, facilitates and manages cooperative research and development in the defence and related sectors in manufacturing, engineering and applied science to create and enhance Australian industrial capability. The Defence and national security customers, industry and research sectors are key stakeholders. Strategic Intent: CAPABILITY THROUGH COLLABORATION Corporate Structure: Public Company. Not for Profit. Limited by Guarantee 2
3 Defence Innovation Perspective Listen mate I define the requirements Got to be small, lightweight & 99.99% reliable Has to be best of breed. Have to have it now. INDUSTRY My product can do everything you need but I need security of contract to innovate Profit motive Contract tenure Supply chain risk Needs S&T as advertised USER Can t field it without configuration management signoff Driven by threat environment Soldier-proof Operational-requirement Time critical (deployment/operational schedule) Fieldable, modular, flexible The next acquisition funding window is 7 years away I need to see the requirements definition case Capability driver Systems approach Budget constrained Acquisition strategy Risk aware Best value = cheapest acquisition. Sustainment is someone else s problem We need to risk mitigate buy COTS, MOTS Acquisition and I need flexibility to work out the kinks in my product Customer s role is to integrate, I ve moved on to the next problem I ve been doing this for years I don t need program management If you push/ignore long enough, they ll come around S&T You don t get it.. my project is unique I need more time, money Best case scenario assumed Ultimate tech outcome context Risk is inherent Best case is cost, schedule estimate 3
4 Defence Innovation Framework Figure 3: Principle elements of Defence innovation, 2016 Defence Industry Policy Statement, page 31 4
5 Elements of a DMTC Program Elements: Appropriate balance between R and D Appropriate balance in contributions: Cash & in-kind Defence & non-defence funds Balance between financial, capability and national security impacts Natural progression of expertise from materials, manufacturing and related themes. 5
6 Operating Model core $ $ $ $ $ $ $ Industry Participant $, In-Kind DMTC Ltd. $, In-Kind Research funds, Commercial IP rights for Defence rights Materials to IP Technology research Centre Research Participant $ Industry Participant Industry Participant Industry Participant Research Participant Research Participant Research Participant 6
7 Industrial Partners 7
8 Research Partners 8
9 Industry Capability Developmment 9
10 TRL Progression Analysis DMTC only conducts fundamental research activities where required in order to support applied outcomes e.g. new material characteristics Bulk of DMTC projects (measured data) operate through mid-level TRL s (TRL 3-4 up to around TRL 7-8) in the so-called Valley of Death DMTC conducts some projects that feed directly into platforms and production lines e.g. automated welding R Balanced Programs D 10
11 R&D Program Example Capability through collaboration Maritime Technologies
12 Future Frigate Program Provide strategic technical underpinning of industrial capability to support of the continuous build enterprise. ~$40bn shipbuilding plan Improve methods of manufacture for SEA5000 (and 1180, and ) ship structures & high value naval components manufacturing costs (costly rework, distortion, modern joining tech., automation) material strength requirements (weight, broader operational environment) performance (next gen sonar, HS steels, corrosion resistance, multifunctional) Link design to manufacturability, sustainability of systems Support current fleet availability corrosion management, repair, life extension Provide practical options to ADF for future acquisitions (eg. SEA 1180 etc.) Modern steel options Welding & fabrication technologies (TGMAW, K-Tig et. al.) Next generation sonar Multifunctional structures 14
13 Maritime Domain Technologies New materials Performance Manufacturing efficiency
14 Land Program HSR Testing & Image Capture Small Scale Modelling and Validation Automated Manufacture Hard & Soft Armour Materials CBRN Materials Power Systems 16
15 Case Study JSF Supply Chain Capability through collaboration
16 2 Research Organisations and 5 Universities: Supply Chain Collaboration Mode IP model and Supply Chain model are key pillars and enablers of success 11 Industry Participants TRL~
17 Case Study Industry Capability Development Capability through collaboration
18 Evolution of Benchmarking Activities Additive BAE Manufacturing Industry Capability Machining Machining of Titanium of TitaniumJSF Supply Chain Development Program March 2017 INDUSTRY CAPABILITY DEVELOPMENT 9
19 Raise the collective capability of Australian SMEs in titanium machining. BAE Systems developed a representative JSF titanium component. SMEs worked with DMTC to adopt & optimise advanced machining technologies & demonstrate these new capabilities by machining the sample component. BAE JSF Supply Chain 29 March 2017 INDUSTRY CAPABILITY DEVELOPMENT 8
20 Axiom Case Study 29 March 2017 INDUSTRY CAPABILITY DEVELOPMENT 13
21 Industry Capability Developmment 24
22 Industry Capability Development Cycle Building industry expertise and delivering industry best practice programs Module One Focus on regional areas with companies with readily transferable capabilities to the defence sector (e.g. resources, automotive) Module Two Connect the leading companies in each area to create a national network of capability Prime involvement to set context detail Module Three Continued optimisation, innovation and R&D insert to supply chain partners Maintain world s best practice 29 March 2017 INDUSTRY CAPABILITY DEVELOPMENT 25
23 Outcomes Productivity improvement through benchmarking Up-skilling of Australian industry to identify areas for improvement Apply new technological advances and to help solve technical problems to support companies to be more competitive Give SMEs the opportunity to interact with Defence Primes Access to and interaction with world leading technologies located within the research sector Validated map of industry capabilities Identified network of supply chain companies in a variety of technology/sector areas 29 March 2017 INDUSTRY CAPABILITY DEVELOPMENT 11
24 Conclusions? Lessons learned Capability through collaboration
25 Performance benchmarks Business Processe s Commercialisation & Impact Scientific Excellence Cont. Improvement Award (AiG, AIDN, DIIC) National SME Award (Aerospace Australia) Excellence in Innovation Award (CRC Assoc) Safeguarding Australia Eureka Prize (Australian Museum) Quality Assurance National Innovation Award (Land Defence Australia) Global Engineering Award National Innovation Award (Maritime Australia) x2* Best presentation award (IBBS ) 28
26 Lessons Learned Success Factors Defence Need ( & Industry Capability & Research credibility) Structure (common framework but allow appropriate flexibility) Relationships & Trust Leadership (Board of Directors, Executive Team, Stakeholders) Program Management Corporate Governance Risk management Continuous improvement, culture of quality and flexibility Impact analysis of research Technology Neutral Consistency, honesty Ensure lean process is part of organisational DNA then focus singularly on outcomes, TRL range 29
27 Thank You Capability through collaboration DMTC Ltd Level 2, 24 Wakefield St Hawthorn VIC 3122, Australia Ph +61 (3)
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