On 7 June, 2017 the Additive Manufacturing Maintenance Operations (AMMO) working group conducted a teleconference. The focus of this session was the AM Business Model Wargame II conducted on 16-17 May, at the Lockheed Martin Global Vision Center in Arlington, VA. The agenda consisted of a series of out-briefs from the co-leaders, facilitators, and coordinators of the four teams. A summary of the teleconference follows:
AM Business Model Wargame II
Attendance: 105 people registered. 10-15 were not able to participate
Team #1 (Buy-Out): Traditional Approach (Bob Appleton)
- Since AM is not a traditional manufacturing process it presented challenges to the traditional acquisition approach.
- Team #1 probably went into too much detail
- TDP is more than just data. Working within the wargame parameters limited our ability to complete.
- Takeaway: We want to specifically negotiate data rights (instead of the two options)
Team #2 (Loaner): (LTC Howie Marotto)
- Working the scenario with the “Loaner” model was complicated
- Internal government/DoD regulations don’t allow a lease
- The leasing model does has value, but also challenges
- DoD restrictions
- Services cannot use it
- GSA can and does lease
- Asses to value proposition
- Reduces logistics chain
- IP access enables rapid fabrication
- Product updates more quickly available
- Pros:
- Leasing can mitigate obsolescence issues
- Leasing over the life cycle of a system can save money and provide a better value
- Incentivizes acceleration of innovation and spurs competition
- Potential for continuous revenue stream for industry
- Industry opportunity to leverage AM profitability
- Cons:
- Penalties for exceeding degradation percentage may not make AM viable
- Cost models are unexplored (i.e., how do we get data back?)
- Brand reputation may be at risk
Team #3 (Commercial Logistics Support (CLS)): (Bill Harris)
- Government has the ability to do the type of work if needed
- Offers flexibility
- We decided that having 5 year options allowed technology refresh
- Low risk method for the government to enter the AM space
- CLS method has the greatest ability to offset high op-tempo needs
Team #4 (Net-Flix): Capt. Armen Kurdian & Jim Regenor
- Challenges included Liability Issues
- Data capture is critical to properly categorize
- Having metadata would help
- Where & when part is made
- Which machine was used
- Have the ability to adapt the business model to changing technology
- View manufacturing as a service
- There are potential cost savings by eliminating non-value added steps of the supply chain
- Better value for the Government
- There is opportunity to be creative
- Having metadata would help
Next Meeting: – The next AMMO WG call is scheduled for 10:30-12:00 am (Eastern Time) on Wednesday, 12 July 2017. (The WG agreed to move it from 5 July).
POC this action is Ray Langlais, LMI, rlanglais@lmi.org, (571) 633-8019