Part grouping: angioplasty for the supply chain: a part grouping system, however, effectively leverages a supply chain by arranging the production of individual items into groups that are based on common manufacturing processes - Agile Combat Support

Air Force Journal of Logistics, Spring, 2003 by Michael C. Yusi

Certainly, a feasible startup process greatly benefits from a method or tool to help the potential manufacturer and supplier (willing to move into a part grouping arrangement) integrate necessary information with each other. Necessary information from the supplier includes basic things such as part nomenclature, part numbers, form, fit, function applications, past and present part manufacturer, monthly, quarterly, and annual customer demands, cost to procure, and current production lead times. Necessary information from the manufacturer includes basic things like part process characteristics (4 or 5-axis mill, turning, stamping), part family characteristics (wiring, sheet metal, tubing), producer qualifications, standard bill of materials, as well as administrative data such as production planning and quality control inspection steps.

An example of one prototype tool that can begin the angioplasty process is the Supplier Utilization Through Responsive Grouped Enterprises Part Grouping Tool. This decision support tool from DLA allows manufacturers to input indicative process data from their end and use them to bump against the indicative parts data managed by DLA into a broad range of grouped combinations consisting of simple [right arrow] specialized [right arrow] complex parts. Utilizing such a tool, both supplier and manufacturer can begin looking at part grouping options for consideration in a supply chain partnership. The tool can also weight part characteristics or the priority of processing stages to help manufacturers filter processing commonalities and fine tune initial group options even further. (4) Working in this manner, a variety of capabilities to facilitate the part grouping supply chain partnership are derived and ultimately begin opening the blood flow of the supply chain.

Putting Rigor Back into the Industrial Base

Edward Aldridge, Jr, Under Secretary of Defense for Acquisition, Technology, and Logistics, said, "If we are to deliver the best quality weapon systems for warfighting, then it's got to come from an industry that is competitive and innovative and healthy." (5) For a large military supplier like DLA, expanding its supply chain strategy for nearly 3 million weapon system spare parts from individual contracts to a part grouping system has potential for manufacturers (including second and third-tier business subsidiaries) to team and make a broader range of items, getting into more business markets. By doing so, these manufacturers share new markets not available for them individually, as well as profits that come with these markets. It is mutually beneficial (for the supply chain) for the manufacturers to work in a part grouping system, which also benefits the supplier partner, such as the DLA, in terms of having more part sources available to support its military service customers and aging weapon systems. John A. Tirpak said, "Today, over 41% of the USAF aircraft inventory is more than 24 years old" and also noted the B-52H is "almost 40 years old." (6) Not-mission-capable-supply cause-code A, first-time demands for Air Force weapon system spare parts are as high as 37-40 percent. (7) In a supply chain environment with weapon systems exceeding life-cycles and consuming more nonmarket ready parts, a part grouping system is a win win for participants.