This chapter focuses on the value proposition and lessons learned regarding the Department of Defense’s (DoD’s) manufacturing innovation institutes and suggested operating changes. The findings in the sections below were captured during the workshop breakout sessions and are based on the perceptions of representatives from each of the stakeholder groups: the DoD institutes, other DoD stakeholders, industry, academia, and other stakeholder groups.
The value proposition section summarizes the stakeholder groups’ assessments of the DoD institutes’ 20 generic offerings, identifying the top-ranked offerings based on both perceived value and the relative cost improvement achieved by the institutes versus obtaining an offering by other means.
The perspectives on current operations section presents the common strengths and weaknesses of the DoD institutes, as determined by each stakeholder group, and includes each groups’ other representative comments.
The perspectives on improvements section summarizes the operating improvements suggested for the DoD institutes by combining inputs from all sources gathered by the committee, including interviews, questionnaires, and the workshop breakout II exercise, “Keep Doing, Stop Doing, Start Doing.”
Workshop participants were asked to assess 20 generic DoD institute offerings (Table 2.1). (Offering numbers are referred to below in square brackets; see also Table B.1 for definitions, including identification of which offerings rely on core
funding.) Using a scale of high, medium, and low, participants were asked to rate how well each of the offerings achieves their organization’s technical development, technical diffusion, and education and workforce development (EWD) needs. The participants were also asked to assess the relative cost and/or difficulty of delivering the offerings in the following two scenarios: (1) without partnering with the DoD institutes and (2) in partnership with the DoD institutes. The ratings were tabulated and analyzed by stakeholder group (see Appendix B).
Overall, the top-eight offerings, ranked by the combined observations from all stakeholder groups (see Figure 2.1), were as follows:
Ranking of DoD Institutes’ Offerings by All Stakeholder Groups
However, differences were noted between key stakeholder groups. For example, comparing the DoD stakeholder group’s ranked offerings (Figure 2.2) to the industry stakeholder group’s ranked offerings (Figure 2.3),
Interestingly, both DoD’s and the industry’s top-five offerings are 100 percent core funded, thus reinforcing the critical importance of core funding to the success of the DoD institutes.
Ranking of DoD Institutes’ Offerings by DoD Stakeholders
TABLE 2.1 Department of Defense Institutes’ Offerings
| Offering # | Generic Offering |
|---|---|
| 1 | Technology R&D Roadmaps |
| 2 | MemberDriven R&D ProjectsShared Cost, Risk, and Results (IP) |
| 3 | Contracted DoD Customer R&D Projects with Cost Share |
| 4 | Contracted Customer R&D Projects with No Cost Share |
| 5 | Technology Standards Roadmaps and Coordination |
| 6 | Technology Consulting Services |
| 7 | Rapid Prototyping/Preproduction Services |
| 8 | Use of Institute Equipment |
| 9 | Updates on StateoftheArt Technology |
| 10 | Technical Papers and Publications |
| 11 | Data Coordination and Dissemination |
| 12 | Networking and Collaboration Opportunities Amongst Industry, Academia, and Government Members and Other DoD Institutes |
| 13 | Creation of Regional Institutes/Hubs and Technology Ecosystems |
| 14 | Use of NIST MEP Program to Reach SMEs |
| 15 | Education and Workforce Development Roadmaps |
| 16 | Institute Internships and Apprenticeships |
| 17 | Technology Handson Training and OnSite Courses (K12, Veterans, DoD, Industry) |
| 18 | Technology Education Online Courses |
| 19 | Technology Overview Courses for Government and Industry Executives and Leaders |
| 20 | Job Postings |
NOTE: MEP, Manufacturing Extension Partnership; NIST, National Institute of Standards and Technology; R&D, research and development; SME, small and mediumsize enterprise.
Ranking of DoD Institutes’ Offerings by Industry Stakeholders
Overall, the relative cost improvement for the institutes’ offerings was ranked by all stakeholder groups (see also Figure B.2):
Ranking of the Relative Cost Improvement for DoD Institutes’ Offerings by All Stakeholder Groups
Similar to the overall value ranking, four of the top-five relative cost improvement offerings are 100 percent core funded (only “Use of Institute Equipment” [8] is project funded). This further emphasizes the critical importance of core funding to the DoD institutes’ value proposition and financial stability.
Regarding relative cost improvements, with the exception of the DoD stakeholders, all of the other stakeholder groups noted positive cost improvements for each of the 20 offerings when working with the institutes versus obtaining the offering without the benefit of an institute (see Appendix B, Figures B.3 to B.7). As for the DoD stakeholder group, they noted negative cost improvement for the following three offerings: “Technology Consulting Services,” “Rapid Prototyping/Pre-Production Services,” and “Technical Papers and Publications.”
Based on these observations, a follow-on study is merited to obtain a deeper understanding of the value proposition for the individual DoD institutes and is included as the first follow-on consensus study topic in Chapter 6.
The observations contained in this section are a blend of information obtained from personal interviews with individual committee members, questionnaires from each stakeholder group discussed by the committee in open session on January 30, 2019, and from the stakeholders attending the workshop on January 28-29, 2019. The observations from the DoD institute stakeholders are a self-assessment as a group. The observations from the other four stakeholder groups (DoD stakeholders, industry, academia, and other stakeholder organizations) are their assessments of the operations of the DoD institutes from the perspective of their individual groups.
Representatives from all eight DoD Manufacturing USA manufacturing innovation institutes willingly provided their frank perspectives on the current opera-
tion of the institutes, as a group and as individual institutes. A total of 26 leaders from across the institutes attended the workshop. As expected, there was substantial commonality in their perspectives as well as insights that were meant to be specific to their operation. The following common themes among the strengths, weaknesses, and perspectives, listed below, were identified. The lists are not in any particular priority order.
| Strengths | Weaknesses |
|
|
As nonprofit organizations, the DoD institutes were established as public–private partnerships with DoD and intended to be mission-driven, conducting R&D focused on TRL/MRL 4-7 for their manufacturing technology, diffusing that technology within the partnership and beyond within the United States, and providing EWD for current and future domestic users of the technology. They were also expected to be self-sustaining, but with a substantial divergence of opinions within DoD of what “self-sustaining” means, as will become apparent from the DoD stakeholder organizations’ input that follows.
As a significant lesson learned, at the time the institutes were established there was no clear, mutual understanding of the scope of the long-term “self-sustained” mission at the end of their initial period of performance. If the future mission expected by DoD includes the current set of offerings that do not generate break-even revenue, such as the coordination of the development of standards with the standards developing organizations, the current level of funding will need to continue.
Congress will support DoD funding for manufacturing. The challenge is to sell it within DoD.
—Congressional Staff Interview
The committee received inputs from 45 representatives of DoD stakeholders. These stakeholders expressed views on the initial framework of the institutes and how it has changed since implementation; the perceived value of institutes to them as they conduct their own mission or research; and a general consensus that changes were required. Based on the responses received, the population of the DoD stakeholders was clearly bifurcated according to whether the respondent is inside or outside of the DoD Manufacturing USA institute ecosystem.
DoD stakeholders within the DoD Manufacturing USA institute ecosystem identified common themes among the strengths, weaknesses, and perspectives, listed below. The lists are not in any particular priority order.
| Strengths | Weaknesses |
|
|
This is about supporting the industrial base. DoD should just make the strategic decision to fund the institutes.
—DoD Stakeholder Interview
DoD stakeholders outside of the DoD Manufacturing USA institute ecosystem identified the common themes among the strengths, weaknesses, and perspectives, listed below. The lists are not in any particular priority order.
| Strengths | Weaknesses |
|
|
It’s not an innovation until it solves a warfighter’s problem.
—Pete Newell, former director of the Army Rapid Equipping Force
Within and outside of the ecosystem, there is a general opinion that something needs to be done. A number of innovative ideas were suggested. These included re-competing institutes, standardizing the experience, shifting MRL levels both up
and down, and developing a new set of standard metrics with real consequences for falling short.
There are people in the manufacturing community, both inside and outside of the ecosystem, who would like for the original strategy to continue. In this scenario, the institutes that are seen as having value will continue to receive funding from inside and outside of DoD. There is also a group of people that would like to see the institutes focus on working leading-edge technologies with state-of-the-art equipment. The focus of this effort would be on reducing risk and training the workforce in these technologies.
The committee received inputs from more than 50 representatives of small, medium-size, and large industries. These stakeholders expressed views on the contributions of the institutes to economic growth and global competitiveness. They agreed with the original President’s Council of Advisors on Science and Technology (PCAST) Advanced Manufacturing Partnership (AMP)1 mission for the network of institutes to develop a U.S. manufacturing ecosystem in emerging technology areas and to engage in technology maturation to bridge the gap from TRL/MRL 4-7.
The leading reasons for partnering with the DoD institutes, from the perspective of industry stakeholders, were to
The lists are not in any particular priority order.
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1 President’s Council of Advisors on Science and Technology (PCAST), Report to the President on Capturing Domestic Competitive Advantage in Advanced Manufacturing, 2012, Washington, DC, https://obamawhitehouse.archives.gov/administration/eop/ostp/pcast/docsreports.
| Strengths | Weaknesses |
|
|
In sum, the industry stakeholders strongly support the collaborative R&D model, where industry, government, and academia partner to accelerate development of emergent material and manufacturing technologies. They view current operations as a good base to build on, but with significant room for improvements that would benefit their stakeholder community needs.
Lockheed Martin is partnering with the DoD and DOE electronics and photonics focused institutes to rapidly mature and transition emerging, high impact electronics and photonics technology innovations to LM product lines and mission platforms to significantly reduce size, weight, power and cost (SWAP-C) and provide advanced, secure capabilities to support the warfighter. These partnerships are providing the critical R&D and manufacturing ecosystems necessary for the preservation and growth of the U.S. electronics industrial base and workforce which benefits the national economy and security.
—Lockheed Martin
The committee received inputs from about 30 representatives of the academic community. These stakeholders expressed views on the contributions of the DoD Manufacturing USA institutes to their respective academic institutions with respect to education, R&D, and economic development. The lists are not in any particular priority order.
| Strengths | Weaknesses |
|
|
The committee received input from about 20 representatives of other government agencies and laboratories, congressional and Government Accountability Office staff, professional societies, innovation agents, and policy think tanks. These stakeholders expressed views on the contributions of the institutes to economic growth and global competitiveness but were generally not able to assess the implications for national security priorities in any detail. They agreed with the original PCAST AMP2 mission for the network of institutes to develop a U.S. manufacturing ecosystem in emerging technology areas and engage in technology maturation to
___________________
2 Ibid.
bridge the gap from TRL/MRL 4-7. Although the sample of opinions was not sufficient to represent this entire stakeholder category, the opinions reflected significant commonality regarding current strengths, weaknesses, and other important aspects of the institutes. The lists are not in any particular priority order.
| Strengths | Weaknesses |
|
|
In sum, the other organization stakeholders view current operations as a good base to build on, but with significant room for improvements that would benefit their stakeholder community needs.
The observations contained in this section are regarding the DoD institutes’ offerings listed in Table 2.1 and the expanded definitions contained in Table B.1 in Appendix B. As before, the observations from the institute stakeholders are a self-assessment as a group. The observations from the other four stakeholder groups (DoD organizations, industry, academia, and other stakeholder organizations) are their assessments of the operations of the DoD institutes from the perspective of their individual groups.
The suggested operating improvements that follow for the DoD institutes are the results of combining inputs from all study sources, including interviews, questionnaires, and the workshop breakout II exercise, “Keep Doing, Stop Doing, Start Doing.” Since the “Keep Doing” inputs received were based on their perceived high importance to each stakeholder group, they have been included as part of the observations with the improvements.
Appendix C combines the observations from each of the stakeholder groups, making it easier to identify key themes across the stakeholder communities.
The candidate self-improvements identified by the institutes’ senior personnel are a compilation of inputs from all eight DoD institutes. Their suggestions include the following, listed in the order of the 20 identified offerings:
Keep Doing
Stop Doing
Start Doing
While the representatives of DoD stakeholders had various levels of engagement with institutes, all had sufficient familiarity to comment on what to continue or generate and stop doing in each of the key institute offerings. These insights are provided below, listed in the order of the 20 identified offerings.
Keep Doing
Stop Doing
Start Doing
The representatives of industry had sufficient familiarity with current institute operations to offer well-informed suggestions regarding what to keep doing, stop doing, and start doing in each area of institute offerings. They believed these improvements would increase the value of offerings not only for their organization’s purposes but also for DoD. Their high-priority suggestions include the following, listed in the order of the 20 identified offerings:
Keep Doing
Stop Doing
Start Doing
Most representatives of academia were very familiar with current operations of the DoD institutes that they work with. They are in a good position to suggest what to keep doing, stop doing, and start doing in each area of institute offers, listed in the order of the 20 identified offerings.
Keep Doing
Stop Doing
Start Doing
The representatives of other stakeholder organizations had sufficient familiarity with current DoD institute operations to offer well-informed suggestions regarding what to keep doing, stop doing, and start doing in each area of institute offerings. They believed these improvements would increase the value of offerings not only for their organization’s purposes but also for DoD. Their high-priority suggestions include the following, listed in the order of the 20 identified offerings:
Keep Doing
Stop Doing
Start Doing