F-35 Lightning II Affordability Strategy F-35 LIGHTNING ll AFFORDABILITY STRATEGY *i'k'k'k tibial-dc iit'k'k?k Submitted By 2-2 fog 20:7 Lt Gen Christopher Bog?an Date F-35 Program Executive Officer (PEG) 1 Program Manager Prepared Feb Zora. CAPT nDorrans Date F-35 prise Pianning Director F-35 Lightning ll Affordability Strategy TABLE OF CONTENTS Contents 1 Executive Summary 3 2 Introduction 8 2.1 Meeting Warfighter Requirements Within Participant Resource Constraints 8 2.2 Execution Is Key to Delivering Results 9 2.2.1 How Production Contracting Affects Life-Cycle Costs 9 2.2.2 How Sustainment Contracting Affects Life?Cycle Costs 10 2.3 Leadership Commitment to Deliver Performance and Reduce Cost 10 2.4 Effective Competition Throughout Air System Life-Cycle 10 2.5 Support For Warfighter Efforts To Reduce Its Costs 11 3 Affordability Cost Reduction Programs 11 3.1 Development 1 1 3.1.1 Follow-on Modernization (FOM) 12 3.2 Production 13 3.3 Sustainment 1? 4 Conclusion 20 Appendix A 21 F-35 Lightning ll Affordability Strategy 1 Executive Summary The Lightning [1 Program is an Acquisition Category (ACAT) 1D program concurrently in the Development, Production, and Sustainment phases of execution. The F-35 Joint Program Office (JPO) is responsible for the governance to design, develop, deliver and sustain the for the U.S. Services, Partners and Foreign Military Sales (FMS) customers. As captured in its Acquisition Strategy, the F-35 JPO is executing the strategy to achieve Warfighter requirements within cost, schedule, and performance constraints directed by the Department. The F-35 IPO has a long standing, established life-cycle affordability strategy that is continuously implemented across the entire Enterprise to drive cost out of all aspects of the program. The F-35 JPO has effectively partnered with all F-35 stakeholders the U.S. Services, Partners, FMS customers, and Industry to leverage the required collaboration and instill the necessary sense of ownership to effectively realize targeted cost avoidances and savings across a multitude of affordability initiatives. These initiatives address program-wide affordability opportunities within the development, production, and sustainment life-cycle areas, and are pursued by multidisciplinary teams, involving collaboration across program management, engineering, logistics, financial management, contracting, legal, and other critical processes and organizational elements. The objective of these efforts is to identify opportunities and implement initiatives that reduce upfront development investment costs and reduce Unit Recurring Flyaway (URF) costs for all variants, while simultaneously working to obtain realistic reductions for life-cycle Operations and Sustainment costs. This F-35 Lightning II Affordability Strategy is a living document that captures completed, in-work and future affordability initiatives within Appendix A. Utilizing this affordability mapping process, the JPO has instilled a culture of cost consciousness to ensure decisions at all levels of the program take into account the cost impact of each decision made. This strategy document captures the strategic and tactical methods to develop and implement these affordability initiatives across the entire enterprise, thereby allowing F-35 JPO leadership the insight to make best value trade off decisions across all three concurrent phases of program execution. From the inception of the program, F-35 JPO leadership solicited and identified innovative processes to drive out costs across the life-cycle. The following paragraphs summarize the top level initiatives for each phase of the program and provide confidence to senior leadership that this affordability strategy is real, executing to plan and providing the cost reductions necessary to ensure the US. Services, Partners, and FMS customers can and will afford the F-35 throughout its entire service life. Development Affordability: To control development costs following the Nunn-McCurdy breach in 2010, the F-35 JPO conducted an extensive technical baseline review to evaluate the cost, schedule and capabilities to be delivered during SDD as well as generate review processes to ensure cost and schedule remain under control. These technical and programmatic control points resulted in the program meeting its cost and schedule requirements as documented in the updated acquisition program baseline. As the program transitions from SDD to Follow-on- Modernization, the JPO is strategically Shifting the ownership balance from the contractor to the government across areas such as but not limited to, flight test, system F-35 Lightning ll Affordability Strategy engineering, technical baselines, data rights and open systems architecture. This will help execute a Better Buying Power strategy that provides more opportunities for cost cutting competitions for aircraft and increases the utilization of more affordable organic workforcelfacilities to realistically drive down total development costs. Production Affordability: To drive down per unit production costs, the F35 JPO partnered with industry to develop and execute cost reduction initiatives for both the aircraft and the F135 engine. In conjunction with its industry partners, the F-35 JPO developed the Blueprint for Affordability, an investment program which enabled cost reduction initiatives across prime and subcontractor production lines with the targeted goal of reducing per unit costs and bringing the cost of the F-35A below per unit by LRIP lot 13 (2019). This affordability process incentivized industry?s cost reduction investments which have resulted in savings of per aircraft in LRIP lots 9 10 respectively and will generate $413 in total cost savings through production procurement. The program office plans to continue the Blueprint for Affordability in LRIP lots 12-14 with industry investing up to in cost reduction initiatives. This is anticipated to result in an additional per unit savings of to across LRIP lots 12-14, for an additional projected total procurement cost savings of $413. On top of these savings, the JPO, in conjunction with Industry, will be conducting a thorough ?supplier base delayering? initiative to find realistic delayering opportunities that will result in considerable cost and fee-on-fee reduction savings on future production lots. For the F135 engine, industry partnered with the JPO to execute a War on Cost aimed at production line cost reductions which resulted in driving down the cost by 40% over the ?rst 225 engines. The initial War on Cost was a joint government and industry investment in cost reduction. Pratt Whitney proposed the next round of the War on Cost to be solely funded by industry with recoupments funded through a tiered incentive structure yielding little to no risk to the government. Finally, the program plans to execute a Block Buy/Economic Order Quantity contract strategy, which will put in place a Block Buy for our Partners and FMS Customers for LRIP lots 12, 13, and 14. This contract strategy will procure three years of material and equipment in a single year enabling industry to generate savings through quantity and long term arrangements. With congressional approval, the U.S. Services? strategy is to procure the material and equipment for LRIP lots 13 and 14 in a single year. This hybrid strategy, encompassing a Partner and FMS Block Buy and US. Services? EOQ, is estimated to save approximately across LRIP lots 12, 13, and 14 with little to no risk. Once the program reaches Full~Rate Production, the JPO intends to leverage a multi?year procurement strategy. The bene?ts are similar to a Block Buy where customers benefit from quantity buys and the Industry side benefits from a stable, long term demand enabling Industry to make long term investments that will continue to drive down costs. F-35 Lightning ll Affordability Strategy Sustainment Affordability: To ensure that Warfighter performance capabilities will be delivered within an affordable 0&3 cost, the E35 JPO leadership established a 30% cost reduction mandate for life?cycle 0&8 costs over 10 years based on the 2012 Sustainment Annual Cost Estimate (ACE) baseline. To enable this, the F-35 JPO jointly developed the Cost War Room (CWR) with Lockheed Martin Aero and Pratt Whitney, providing a single location for experts in manufacturing, supply chain management, cost estimating, and acquisition to work jointly on driving down 0&8 costs. In the four years since its inception, CWR efforts have reduced the 2012 ACE by in estimated 0&3 costs. The JPO will continue to execute joint 0&3 cost reduction and cost avoidance initiatives utilizing the CWR process in order to drive out an additional $1108 by 2023. In addition to maintaining the CWR, the F-35 JPO commenced a Depot Level Repairable (DLR) Cost Reduction Campaign in support of the 30% 0&3 cost reduction mandate. The campaign is structuring a repeatable process for addressing all DLRs by conducting a "top down" analysis of primary sub-component cost drivers and then conducting a ?bottom up" build of costs. This DLR Cost Reduction Campaign will culminate with a "should cost" technical basis for each part and achieve a multibillion dollar cost reduction. The end result will generate real savings for the Warfighter and drive down the cost per flying hour. In conjunction with the CWR, an executive-level Lifecycle Affordability Board (LAB) was developed to direct program affordability initiatives. It is co-chaired by the F-35 Executive Director and his Lockheed Martin and Pratt Whitney counterparts. The LAB is held quarterly to direct the progress of cost avoidance, reduction and savings efforts to improve the affordability of the program. Future sustainment cost reduction initiatives include continuing the Reliability and Maintainability Improvement Program to improve how the weapon system is maintained and to keep and parts longer before they need repairs; developing a Sustainment Cost Reduction Initiatives process that will generate 0&3 cost savings through a process similar to the Blueprint for Affordability; and initiating a strategic sourcing and delayering campaign which will review the many layers in the supply chain and execute methods to drive out waste and eliminate multiple pass-through costs. We anticipate that these future initiatives will result in saving billions of dollars over and above the forecast in the current 2012 ACE. The F-35 JPO will continue to expand its efforts internally to identify affordability opportunities and implement cost reduction initiatives through disciplined enterprise management. The JPO is now executing enterprise?wide planning and continuous process improvement capabilities that are foundational to achieving Warfighter performance within budget constraints while driving out cost. Establishing these affordability processes will ensure that the P0 has the continuing capability to pursue the required affordability improvements for the costs that it controls, and also support the Warfighter in addressing the costs that they control. 7 5 nhlk? Minn nnA lung unn? F-35 Lightning ll Affordability Strategy The balance of this document explains in greater detail the planning, execution, and follow through of our total Affordability Strategy. A detailed breakdown of all cost reduction initiatives by program is provided in Appendix A. F-35 Lightning ii Affordability Strategy Affordability Initiatives Summary Production Sustainment Development Cost Reduction Initiative Board: $81 Blueprint For Affordability: Cost War Room: - War On Cost: . Reliability and Complete Enhanced Maintainability Programmatici?Technical Controls Improvement Program: $1 a Development Test Point Reduction . Lifecycle Affordability Board . Block Bunyconomic Order - Depot Level Repairables Quantity (DLRs) Should Cost - Open Systems Architecture Analysis (15% reduction) . Blueprint for Affordability 2 . Confi oration Steerin Board $43 ln Work 9 . Cost War Room . Com etition of Tech Refresh 3 war 0? cm 2 ?$43 . Lifecycle Affordability - Design to Cost Board . Litecycle Affordability Board - Strategic Sourcing . Strategic Sourcing - Strategic Sourcing ContractorfGovernment Compete/delayer Compete depot level 6 competition for SW upgrades procurement repair ur Government Owned BaselinerGovemment Lead Systems Integrator Multi-Year Procurement Sustainment Cost Reduction Initiatives (SCRI) F-35 Lightning ll Affordability Strategy 2 Introduction 2.1 Meeting Warfighter Requirements Within Participant Resource Constraints As captured in its Acquisition Strategy, the F-35 Program is pursuing an executable program to achieve Warfighter requirements within cost, schedule, and performance constraints. To deliver required Warfighter performance capabilities, the F-35 Joint Program Office (JPO) is implementing and managing life-cycle affordability efforts across the F-35 Air System, ensuring that program management, technical competencies, partners and U.S. services, and industry organizations collaborate to deliver an affordable and sustainable enterprise. These collaborative efforts address program-wide affordability opportunities across development, production, and sustainment life-cycle areas. Likewise, these efforts are multi- disciplinary, involving collaboration across program management, engineering, logistics, financial management, contracting, legal. and other critical processes and organizations. The objective of these efforts is to identify opportunities that reduce URF costs for all variants, while simultaneously working to meet cost reductions for through?life 0&8 costs. As a result of the F-35 JPO's reorganization in May 2016, the Program?s newly created Affordability Management Team (AMT) became a sub-team under the F-35 Enterprise Planning (EP) Directorate. The AMT partners with industry within the Cost War Room (CWR) which is a hybrid organization made up of the F-35 JPO, Lockheed Martin Aeronautics (LM), and Pratt a Whitney representatives. Prior to reorganization, the CWR focused on 0&8 costs, but has now expanded its scope to include life-cycle affordability analysis. Beyond the CWR efforts, the executive-level forum used to monitor F-35 JPO-wide affordability initiatives is the Lifecycle Affordability Board (LAB), which is chaired by the F-35 Executive Director and is co-Ied by LM and Paw counterparts. The LAB convenes quarterly to review Integrated Product Teams (IPTs) cost reduction initiatives, cost avoidance efforts and affordability initiatives aimed at driving down both the Unit Recurring Fly-Away (U RF) Costs of the and to meet annual targets of 3% percent savings to the Operations and Support Annual Cost Estimate (ACE). In addition, as of 2017 the AMT is executing a Depot Level Ftepairable Cost Reduction Campaign, which is focused on reduction in the largest cost component within the ACE. The Campaign is focused on establishing a repeatable process for addressing all DLRs by conducting a "top down" analysis of primary sub-component cost drivers and then conducting a "bottom up" build of costs. This DLR campaign will culminate with a "should cost" technical basis for each part and enable a potential multi-billion dollar cost reduction. The end result will generate real savings for the Warfighter and drive down the cost per flying hour. To achieve Program performance requirements while improving affordability, F-35 .JPO AMT is managing, integrating, and improving the implementation of its affordability programs and processes across the Warfighter enterprise. These affordability programs are described in section 2 below in greater detail. Page 8 of 57 F-35 Lightning ll Affordability Strategy 2.2 Execution Is Key to Delivering Results The F-35 JPO will deliver Warfighter performance with Participant resource constraints through the effective execution of collaborative Government-Industry arrangements, which commenced in low-rate initial production (LRIP) and will continue in strategic contracts arrangements such as Block Buy and Multi-year production procurements as well as future sustainment and Follow-on Modernization contracts. As successive block deliveries expand air system capability to the Warfighter, the sustainment elements detailed in this document will mature incrementally and provide an increasing potential for additional cost reduction initiatives. These will be captured in a new process within the AMT entitled Sustainment Cost Reduction Initiatives (SCRI), which are detailed in Section 3. The statements of work, product work statements, contract terms and conditions, and other contractual instruments currently include scope derived from CWR and other life-cycle affordability analyses. To improve life-cycle affordability, the F-35 JPO will continue to improve the of performance, affordability, feasibility sourcing, and management analysis, using cost reduction capabilities to provide higher quality, executable content to future contracts. 2.2.1 How Production Contracting Affects Life-Cycle Costs The F-35 JPO has the data necessary to evaluate opportunities for current and future cost reduction. Cost-Plus-lncentive Fee (CPIF) iAward Fee (AF) land Fixed Fee (FF) contracts were awarded for the initial LRIP Lots 1 through Lot 3. The transition to Fixed-Price-lncentive Fee contracts began with LRIP Lot 4 as the F-35 Air System design matured and could be producible at established cost targets. Contractors' accounting systems were deemed adequate for determining costs applicable to the contract, and appropriate Government surveillance during the contract period of performance provided reasonable assurance that efficient methods and effective cost controls were used. Differing fee methodologies were used for the various efforts on each contract to ensure best value; for example, incentive fee for cost and schedule; award fee for timeliness and quality; and fixed fee for Diminishing Manufacturing Sources (DMS). The JPO requested cost data through each LRIP contract via a Contractor Cost and Software Data Reporting (CSDR) plan approved by the Defense Cost and Resource Center (DCARC). The GSDR provides useful information for analysis including: (1) assessment of cost management during the initial production phase; analysis in support of the sustainment awardlincentive fees; and, estimating the cost of future production and sustainment contracts. The F-35 Production IPT initiated numerous efforts to facilitate and mature an innovative and affordable transition from System Development and Demonstration to Production, not only at prime contractor locations, but also at key suppliers. These efforts focus on reducing the risk to manufacturing and associated costs as the program transitions from development to Full Rate Production (FRP). The F-35 JPO will continue to assess manufacturing maturity according to the contractor program plans (Manufacturing, Quality, Transition to Production, Producibility, and Supply Chain Management) leading to FRP. As production rates increase, the Program will increase build rate efficiencies and capacities. This requires comprehensive Page 9 of 57 F-35 Lightning ll Affordability Strategy rate expansion planning to ensure capacity and resources are added as required, combined with a robust infrastructure capable of highlighting areas that are require additional management attention in order to mature and perform at the required efficiencies. 2.2.2 How Sustainment Contracting Affects Life?Cycle Costs Currently, primary sustainmenf contracts focus on performance metrics for both Warfighter requirements and U8 ServicefPartner resource constraints. These metrics include Air Vehicle Availability (AVA), Mission Effectiveness (ME), Full Mission Capability (FMC) and Life-Cycle Cost (LCC). The constituent elements of the top level sustainment metrics (AVA, FMC and fall under the umbrellas of the Warfighters, their logistics and acquisition organizations, the JPO and Industry. Achievement of sustainment performance requirements relies on collaboration across the many interfaces between program participants and other organizational elements of the Global Sustainment Strategy {(388) including the F-35 JPO, Product Support Manager (PSM), Product Support Integrators (PSI) and Product Support Providers integrating and incentivizing the achievement of individual organizations? responsibilities is critical to overall success and a key requirement for G88. Collecting, tracking, and evaluating operational data for Performance Based Logistics metrics, measured and refined over time, will determine how metrics drive refinement of predictive and performance-based criteria. These metrics include availability, mission effectiveness, required sorties, accomplished flying hours, logistics footprint, field maintenance level of effort, and integrity improvement requirements. 2.3 Leadership Commitment to Deliver Performance and Reduce Cost To ensure that Warfighter performance capabilities will be delivered within participant resource constraints, the F-35 Program Executive Officer (PEO) has established a 30% cost reduction mandate for through?life 0&8 costs, based on the 2012 Sustainment Annual Cost Estimate (ACE). Of the $5368 in Services sustainment costs, the F-35 JPO-managed portion of the costs that will be controlled under PSAs between the PSM and PSI is $2628, or approximately 49% of the total. Cost reduction activities will concentrate on managing program-level affordability initiatives encompassing production, development, sustainment and to identify opportunities that reduce costs for all F-35 variants, while simultaneously working to meet the PEO mandate for 30% 0&8 cost reductions. 2.4 Effective Competition Throughout Air System Life-Cycle Moving forward, the JPO will work to identify management and (388 tasks suitable for competition to continue to drive down costs. As the F-35 JPO identifies competitive opportunities to meet a requirement, the program will survey the data required for that competition and identify areas where the program lacks properly marked data for which the Government has sufficient rights. Where the F-35 JPO determines that it does not have properly marked data sufficient for competition, it will assert its data rights by challenging unjustified data markings and secure the required data by exercising the Deferred Ordering Clause where required; and require the contractors to remove nonconforming technical data markings when the data is delivered. Where the program determines that it does not Page 10 of 57 F-35 Lightning II Affordability Strategy possess sufficient rights for competition, it will pursue specially negotiated license rights if cost effective. For future contract actions. including those under the F-35 .JPO will institute a data review process where data to be developed under the contract is evaluated for future needs to ensure proper data rights are acquired. 2.5 Support For Warfighter Efforts To Reduce Its Costs Though the F-35 JPO manages approximately half the sustainment costs, the operational levers for cost reduction under its control are less impactful than those controlled by participants. Reductions in the number of flying hours have a direct effect on both Warfighter and F-35 JPO managed costs. Likewise, Warfighter manpower cost reductions could accrue through a focus on investment in improvements to system maintainability and thus reduce the number of required maintenance man hours. Such investment will enable participants to realize savings through their maintainer staffing decisions. Given potential operational tradeoffs in each of these participant-led opportunities, the F-35 JPO will evaluate collaborative opportunities across 688 and its stakeholders JPO and participants) in the most risk-optimized way, to meet the cost reduction mandate. In this way, full savings will accrue through partnership between the participants, F-35 JPO and Industry organizations pursuing enterprise-wide benefits, not just those performance or cost levers directly under their control. 3 Affordability Cost Reduction Programs Cost reduction activities concentrate on managing Program?level affordability initiatives encompassing production, development, sustainment and follow-on modernization activities to identify opportunities that reduce Unit Recurring Fly-Away costs for all F-35 variants, while simultaneously working to meet the PEO mandate for 30% 0&8 cost reductions, based on the 2012 Sustainment Annual Cost Estimate (ACE). The F-35 JPO has integrated development, production and sustainment cost reduction initiatives into a F-35 JPO-wide capability that harnesses expertise and improves lifecycle decision making. 3.1 Development Process: To control development costs following the breach in 2010, the F-35 JPO conducted an extensive technical baseline review to evaluate the cost, schedule and capabilities to be delivered during SDD and generate new processes to ensure cost and schedule remained under control. The result of the technical and programmatic reviews are currently culminating in the Program remaining on track to meet its cost and schedule requirements as documented in the updated acquisition program baseline. One process added to SDD contract governance was the Cost Reduction Initiative Board (CRIB) chaired jointly by LM Aero and the F-35 JPO. The CRIB adjudicated 7'7 initiatives with 39 producing positive results. As the program transitions from SDD to the F-35 JPO is strategically shifting the ownership balance from the contractor to the government across areas such as but not limited to, flight test, system engineering, technical baselines. data rights and open systems architecture. This will help execute a Better Buying Power strategy that provides more opportunities for cost cutting competitions for aircraft and increases the Page 11 of 57 F-35 Lightning II Affordability Strategy utilization of more affordable organic workforce/facilities to realistically drive down total development costs. Results: The CRIB approved 39 initiatives so far resulting in $81 in cost avoidance in 8130. A major cost reduction focus area over the past few years was in the Integrated Test Force (ITF) where a number of initiatives were executed. The addition of strategic tankers extended missions by double over the normal ops tempo for air-refueling by increasing test points and mission throughput. Test ranges hours of operation were extended to create regular battle during weapons surge testing. Additionally, the ITF undertook a test point reduction effort resulting in the reduction of the total test points required to fly for verification of biock 3F capability by 3,800 points equating to a reduction of approximately ten months of flight test. A review of the sequence of test points was evaluated to minimize critical paths, saving approximately 8 months of additional planned testing. 3.1.1 Follow-on Modernization (FOM) Way Forward: The F-35 JPO will continue providing capability enhancements for the F-35 Aircraft, Off?board Mission Support, Training System, Support Equipment and ALIS through an incremental Block approach to software and hardware modernization (eg. Block 4, Block 5, Block 6, etc). Each Block will be broken down into sub-Blocks (Block 4.1, Block 4.2, Block 4.3, etc.) based on disciplined systems engineering and delivered in two?year intervals. The scope of will also include the technology maturation of approved capability enhancements to reduce risk to the overall program. Technology Refresh 3 (TR 3) will implement Modular Open Systems Architecture (MOSA) to promote competition within FOM as well as enable more efficient future capability enhancements. Utilizing MOSA will allow for use of affordable commercially available solutions to be evaiuated for implementation. A competition for TR 3 by the prime contractor, with Government oversight, will ensure the best value alternative is selected. This will allow for more opportunities for competition of aircraft resulting in lower upgrade costs in the future. In coordination with the Joint Service software sustainment team, the JPO is actively planning the transition of software support activities from the prime contractor to establish an organic software sustainment capability. In October 2016, the US Government embedded software engineers from Naval Air Weapons Station (NAWS) China Lake, Hill AFB and Robins AFB at LM Aero to begin developing the skills required to smoothly transition to an organic capability. As of January 2017, a draft Software Sustainment Strategy is in development and coordination within the F-35 JPO. The F-35 JPO will explore options to break out modernization by teaming with other Government agencies or Industry to take advantage of expertise and leverage competition to further reduce cost. Page 12 of 57 F-35 Lightning ll Affordability Strategy 3.2 Production a. Blueprint for Affordability Process: The Blueprint for Affordability wasfis a partnership established between industry and the Government to reduce Unit Recurring Flyaway price of the to a 4th Generation fighter price by 2019. It was set up as collaboration between the F-35 industry prime team (Lockheed Martin, Northrup Grumman and BAE) and Government counterparts. consisted of an Industry investment into production Cost Reduction Initiatives (CRls) which would then be repaid if savings were generated in excess of a ore-agreed to production lot over lot learning curve (Figure 1). The initiatives were built upon the U.S. Government's Better Buying Power initiatives, which encourage defense contractors and the Government acquisition community to determine new and innovative ways to reduce the cost of their goods and services. US F-35A 5243 5M (TY) Sui 512: $112 51:! ?g LM Target +5.11 .. 35-" Figure 1: Example Learning Curve Through January 2017, a total of 270 were identified and 204 were resourced by lel, NGC, BAE and additional sub?tier suppliers. As part of the process, each individual went through an in-depth approval process before it was fully funded which included an initial triage. a first pass Affordability Review Board (ARB 1), where business case analysis funding was approved to mature the concept, and finally a second ARB where the CHI was either approved for full funding, killed or returned to ARB 1 for additional analysis (Figure 2). -35 Lightning ll Affordability Strategy ?targeted [Oil Reduction IEmpIOyee Submittal Submill at qEngineerlng?euhew of Iethnr-cai Merits OProdure Top-Level Business (as: ?Receive Affordability Review Board Authorization In Proceed vak with Engineering. Package,0braln Production. and ARE. C?l?pproval Su 9on (halo to IWer?hltd Ranking - customer Submitter ODeten'n-ne Il Idea Generates Form? system Populated Constitutes ?3 cm Chdif?'d Board with Analysis from IDalabu-z Entry EBA -lndustrv.rlPO to- Chaired Boa-d Cnncurrenre Ilf Change to tfhangerpdate: oProduction line tngineering Proceed to IDlawinBS Eoordinaricn Change Centrol Board . - nRecejug p0 {cast and rote ias Mam-m Release required]: Ilf No Engineering mm: ltiha rages, Preteen to 'Prmesses oNoIity Responsible Parties of Upcoming Veri?cation Events *Gather Verification information o?elurn to ARE. with Final Analysis Pugs: am ?an? Boa". Placement in Future Proposal Ildenti'fy lasso n5 Learned Figure 2: CRI Approval Process Results: Blueprint for Affordability was successful in delivering process and design efficiencies resulting in an F-35A model cost reduction of approximately 60% from LRIP 1 URF to 10 URF. Investments have yielded per aircraft savings across LRIP 9 and 10 of and $1 .TM, respectively. These savings will continue Lot over Lot in the future generating in total procurement cost savings across the life-cycle. Specific Cost Reduction initiatives are detailed in Appendix A. Way Forward: With coming to an end in 2017, the F-35 JPO and LM are planning to continue cost reduction efforts for production in a Blueprint for Affordability Part 2 which was announced by Mr. Kendall at the Farnborough Air Show in July 2016. Industry will invest at the same rate as for the next two years, approximately in through FY 2018 as a bridge to the anticipated Block Buy. At that time, the program intends to invest additional cost reduction funding to continue to drive down procurement cost of the F-35. b. Pratt 8: Whitney?s War on Cost (WOC): Process: Similar to the Blueprint for Affordability, Pratt Whitney, along with Rolls Royce, developed and executed a War on Cost designed to drive down the engine cost (and module) over a period of seven years. Unlike, which was principally an industry investment and recoupment strategy, the government and industry jointly invested in cost reduction initiatives designed to drive down per unit engine costs in manufacturing and assembling the F135 Engine. The process for identification and execution of initiatives was the same as was executed on Results: Since 2009 the government investment of with a matching investment of up to from Pratt Whitney produced a total of 1,188 individual manufacturing cost reduction initiatives (49% F-35AJC and 39% This joint governmentindustry investment will result in a total $71688 in savings in the next decade, due to a reduction in -35 Lightning ll Affordability Strategy the cost of an engine from in 2009 to in 2016. Currently an additional 241 cost reduction initiatives are being worked, which are scheduled to yield another per engine cost savings once all manufacturing efficiencies are implemented. War on Cost process efficiency along with design techniques drove the cost down ($2012) since the initial LRIP 2 unit (Figure 3). F135 Cost Improvement Curve {MCG-OEstimatsd Actual; In 2012 no 520.0%! - Actual:- - ?mluuh - STOVL Ellullb [Incl 313,00? Wi' um Wm :w FtFt' 7800 - Col-inc: Cost . 1' Centred Col-t in] RHI 515.000 - Centric-rm '16 ?Run 98% OT WOC urve ONE: Al: Pin- 91!" 15 purl - 59 36M Pedut tron 4000 "it 2?33 1 I . 312.000 $10,000 $3 000 "m Luna 100 150 200 250 300 350 40-0 450 500 550 600 550 100 T50 Figure 3: Engine Price learning Curves Way Forward: Pratt a Whitney is planning to introduce a War on Cost Part 2; however, instead of requiring government investment, believes they can reduce cost through normal business activities and investments recouping any industry investments in incentive fees. c. Block Bunyconomic Order Quantity (E00) Process: The F-35 JPO plans to execute a Block BunyOQ contract to reduce procurement costs. A block buy would achieve significant program cost savings on the order of roughly $2 billion by allowing contractors to utilize Economic Order Quantity (EOQ) purchases, enabling suppliers down to the component level to maximize production economies of scale through batch orders. Saving is also achieved due to learning curve improvements on production lines and cost reduction initiatives. The savings has been validated by an Joint Program Office cost estimate, an industry analysis study, and an independent assessment conducted RAND. This strategy will give the F-35 International Partners the flexibility to procure all aircraft in a single procurement for Lot 12 (2018) or to procure aircraftfengines in a multiple lot fashion for Lot 12 2018), Lot 13 (FY 2019), and Lot 14 2020). U.S. Services participation in the block buy strategy will be limited to the procurement of ECG for Lots Page 15 of 57 -35 Lightning ll Affordability Strategy 13-14 (FY 2019-2020), for which the F-35 JPO is seeking Congressional Authority in the FY18 budget. There is no multi-year commitment for US. Services aircraft and engines; which will continue to be bought on an annual basis for Lots 12?14 (FY 2018 ?2020). Predicted Results: The combined block buyrEOQ procurement will cover approximately 450 aircraft for the 11 customers (U.S. Services, International Partners and Foreign Military Sales (Flt/18)) and will save an estimated $2 billion over the block buy period (Figure 4). US F-SSA SAR Unit Price Comparison: 4% E0121 ILM PW) $95 90 5 i 585 535.5 a $80 '2 wl??'i Natural learn'n; 3 with Learning 0 (RI 511R with Learning, URIto! F?I'li? FY18 FY19 Figure 4: F-35A SAR Unit Price Comparison The risk of entering into a block buy in Lot 12 2018) to the F-35 International Partners and FMS customers is low. By the time it is necessary to commit to a block buy, the program will have completed durability testing for all three variants, reached 98 percent completed of all hardware qualification, completion of the majority of 3F software and weapons delivery testing, and have stable and mature production processes. Benefits of a Block Buv Approach: The use of Economic Order Quantity (EOQ) funding combined with a steady rate over a defined period of time will allow the prime contractors and their sub-contractors to plan and make investments that reduce overall cost, achieve greater manufacturing learning curve efficiencies, and pursue other efficiencies. This strategy will enable the US. Government to find the best price per aircraftfengine by requiring the contractors to propose to a "rate over time" construct and provides stability and predictability for the prime and suppliers. Page 16 of 57 F-35 Lightning ll Affordability Strategy Full Participants Commit ?Block" - Fund 2% Economic Order Quantity (E00) in FY 2017 and 2% E00 in FY 2018 Partial Participants - Buy Lot 12 as a single year Lot procurement (part of Block Buy) - Commit to buy Lots 13 and 14 as a ?Block? . Fund 4% E00 in FY 2018 U.S. Services - Buy Lots 12, 13 and 14 as single year procurements - Lot 12 is ?part of Block Buy" Lots 13 and 14 are single year options in Block Buy contract (Preserves and Congressional Annual Discretion) - Fund 4% of E00 in FY 2018 Already budgeted - Requires Congressional approval in FY 2018 to purchase 4% E00 for Lots 13 (FY 2019) and 14 (FY 2020} Bottom Line Block Buy/E00 is low risk for the U.S. Services, International Partners and FMS customers but will result in significant savings. For the US Services single year procurements with normal, annual authorization and appropriation E00 doesn't start until FY 2018 for Services Way Forward: Once the Program reaches Full?Rate Production and with Congressional approval, the U.S. Services will endeavor to leverage a multi-year procurement strategy. The benefits are similar to a Block Buy where customers benefit from quantity buys and the Industry benefits from a stable long term demand allowing them to make long term investments that will drive down costs. This strategy will be critical to the future affordability of the F-35 as production quantities ramp up. 3.3 Sustainment 3. Cost War Room Process: To meet the program?s objective of reducing 0&8 costs by 30% over 10 years (2012 to 2022), at a rate of 3% annually, the F-35 JPO, F-35 Participants, and Industry Partners, created a "Cost War Room" (CWR) staffed by experts in manufacturing, supply chain management, cost estimating, and acquisition to identify affordability initiatives and to facilitate a continuous integrated cost reduction effort through the identification and execution of affordability opportunities. Since the F-35 JPO's reorganization in May 2016, Affordability Management has expanded the original 0&8 focus of the It is now responsible for collaborating with F-35 JPO leadership, industry organizations, and Participants on Program-level affordability encompassing production, development, sustainment and follow-on modernization to identify opportunities that reduce Unit Recurring Flyaway costs for Page 17 0157 -35 Lightning ll Affordability Strategy b. all F-35 variants, while simultaneously working to meet the PEO mandate for 30% 0&8 cost reductions. Results: As of January 2017', the Cost War Room has worked with the F-35 JPO teams, U.S. Services and partners to reduce the program?s sustainment cost estimate by $60.78 in cost avoidance against the program directed 30% Life-Cycle Cost reduction target (Figure 5). These initiatives are manifested in a number of sustainment programs such as Independent Level of Repair Analysis (LORA), Reliability and Maintainability Improvement Program (RMIP), and ACE model validations across the program. Annual Cost Avoidance 2015 Sustainment Cost (ACE 0&3 PALS) Avoidance {Quarterly 12.5 MID ?2 18.00 15.0 Goal iaoorm 'r 5.2 5354! 51-53 Bitten: $510 SIIJ ?In: - S43) nu m1! NM 9015 1013 101d 2015 (14 Total 1015 =05:an [anemia ms. 413% L-kaly an CY CI Liko?y in CY I 2-5094: Lrlcely or CT I Captured 0M I Golnedy Projection ?n?uHr5Iour Bust Cult 5m! [mt ltd-II Figure 5: Lifecycle Affordability Board Cost Reductions Independent Level of Repair Analysis (LORA) Process: The initial LORA was focused only on Department of the Navy aircraft and is planned to be expanded to include USAF and Partners. It is currently leveraging existing Maintenance, Repair, Overhaul and Update depot planning processes to determine the requirements for future repair planning. Additionally, development of U.S. based {and afloat for regional Intermediate- Ievel repair capability present savings opportunity when compared to returning all parts to the depots for overhaul. This effort was presented to the US. Services for funding as part of the POM-19 process. Results: The LORA effort is currently in development with a focus to develop a robust framework to address maritime concerns of such as, high volume failures, reducing repair footprint and reduction of Automatic Test Equipment (ATE) buys. As this matures cost savings will be assessed. Way Forward: LORA is ongoing and will continue to leverage latest maintenance and cost date to adjust maintenance plans to meet performance and reduce Depot Level Page 18 of 57 F-35 Lightning ll Affordability Strategy Repair costs. The pian is for an incremental analysis approach to define required Intermediate-ievel repair capability, timeline and associated funding. Reliability and Maintainability Improvement Program (RMIP) Process: The RMIP is commissioned to improve Reliability and Maintainability of the F-35 with the end goal of improving Aircraft Availability, decreasing Lite-Cycle Cost, and increasing Mission Effectiveness through design and process improvements. These improvements will be deployed to address key performance and cost drivers. RMIP activities include: reliability and maintainability improvements; technology innovation such as leveraging the latest open systems architectures to enhance adaptability and reduce the through life performance impacts of hardware and software obsolescence; technology insertion to improve process efficiency and reduce manufacturing and support costs; and smart repair techniques to optimize mean flying hour between removals to minimize through life acquisition and support costs. Results: Initiatives within the Improvement program have resulted in completion of 36 projects with $21 invested to date for an achieved $1 in LCC avoidance towards the original maturity baseline. Depot Level Repairables (DLRs) Should Cost Analysis: Process: Planned for kickoff in early 2017, the Depot Level Repairabies (DLRs) Should Cost analysis addresses a bottoms-up costing of the performance and cost drivers for DLRs, evaluating how value is generated through the manufacturing and support chains, and benchmarking against commercial, Department of Defense and Partner nations identification of opportunities to eliminate non-value pass through costs, outsource responsibilities, and support fact based negotiation of price and performance. Should cost verification will be undertaken, prioritized on quick wins and primary cost drivers. Initial focus will be on Tier 1, 2 production and product support supplier integration proposals, and will then extend deeper into the high material cost production and DLR value chains, and into labor related maintenance, training and sustaining engineering activities. USAF Cost Reduction Team: Process: Also a recent initiative, an USAF F-35 0&8 Cost Reduction Team has been created with a goal to reduce the USAF F-35A lifecycle 0&8 costs by 12%. The (Maintenance Division) is coordinating with the F-35 JPO, Air Force Life- Cycle Management Center, Air Force Materiel Command, Air Combat Command, United States Air Forces Europe, Pacific Air Forces, Air Force Reserve Command, National Guard Bureau and Air Education and Training Command Subject Matter Experts to research potential cost savings in manpower and maintenance organization, and Autonomic Logistics Information System (ALIS). The team is using Cost per Fiying Hour (CPFH) and the steady state annual lifecycie cost metrics between FY36-FY40 to support initiative identification. The CPFH metric is calculated as total costftotal flying hours and was chosen as a method to monitor total program Page 19 of 57 F-35 Lightning ll Affordability Strategy affordability while avoiding the programmatic changes (extension of extra years) that have occurred between the original call for cost reduction and today. However, since affordability is a key consideration, the team is also using the steady state cost which indicates the projected consistent annual cost. Recommendations will be calculated into a cost savings using both the CPFH and Steady State cost models. f. Sustainment Improvement Projects: Process: The F-35 JPO is identifying sustainment performance and cost improvements such as small maintenance plan changes implemented through Joint Technical Data updates, process improvements implemented through Sustainment Operating instructions, Data Quality and Integrity Management process improvements and provisioningfLogistic Control Number changes. More significant maintenance plan changes and product configuration changes are implemented through Business Case Analysis supported changes to the equipment Maintenance Plans for Unit and Depot Level maintenance. 9. Price VerificationlChallenge Process: The AMT is developing a strategy to incorporate Department of Defense Supply Chain management policy requirements to employ a Price Verificatioanrice Challenge program that provides price visibility and transparency into the hybrid PSI environment for both organic and contract end users for JSF Enterprise. Focusing on a baseline where this initiative will provide visibility for all DLR and Consumable items purchased or repaired for the program by Organic and PSI Providers h. Science and Technology: Process: Finally, the Science and Technology Team are concentrating on maintaining program affordability through implementation of NavyiAir Force Manufacturing Technologies (ManTech) and Small Business Innovation Research (SBIR). Supporting NavyfAir Force ManTech Projects in development and providing guidance on FY18 new starts with a focus on production and life-cycle cost savings. 4 Conclusion Required improvements in executing the identified affordability opportunities include the ability to collect, interpret, and analyze F-35 production, development, sustainment and other program data to enable the F-35 JPO to make effective assessments that reflect and accurate understanding the of the relationship among cost, price, value and performance. improvements to the current performance management frameworks within development, production and sustainment will need a performance framework that improve management of the inter-dependencies across contracts and includes appropriate performance metrics and incen?ves. The F-35 JPO will continue to and expand its ability to identify and implement affordability opportunities through operational and organizational maturation of enterprise Page 20 of 57 I - MOD and F-35 Lightning ll Affordability Strategy management functions that are allocated throughout the F-35 JPO. Establishment of enterprise wide planning and continuous process improvement capabilities is foundational to achieving Warfighter performance within participant budget constraints. Enterprise wide implementation will need to be supported by contracts and agreements with external organizations and internal processes, organizational responsibilities and resources within the F-35 JPO. Establishing these Affordability Programs will ensure that the program has the capability to pursue the required affordability improvements for the costs that it controis, can support the Warfighter in addressing Warfighter controlled costs and can adapt and respond to changes in the operational, business and technical environments to continue to meet the Warfighter performance requirements within future budget pressures. A detailed breakdown of cost reduction initiatives by program is provided in a separate Appendix A. APPENDIX A: Cost Savings Initiatives Summary 1. Development Initiatives a. Science Technology: Total Life-Cycle Savings to date Initiative Name Avoidance AF081C-054 Mold in Place Coatings Captured $118 Affordable Accurate Robot Guidance Captured $122 AF063C-01 1 Terminally Guided Robots in Confined Spaces Captured $40 Affordable Boot Manufacturing In Work $18? F-35 Automated Material Mixing In Work $34 Powder Metal Nickel Grinding In Work $2.8 EODAS Nodule Detect Reduction In Work $1.5 F-35 EOTS Producibility Phase II In Work $33 F-35 Primer Thickness Measurement for Seam Validation In Work $80 Speclvietnx Primer Thickness Future TBD Measurement Technology b. Cost Reduction Initiatives Board (CRIB): Total $81 Life-Cycle Savings to date Initiative Name Capturedfln-WorktFuture Avoidance (351?) Test Point Reduction 2013 Captured $30.00 Reduce Pilot Trainer 3 00 Developmental ATPs Captured Pilot Paced Regression Flight Testing Captured $1.50 Elimination of Win Ti Buffet Durabilit Test Captured $1.30 ATA Flight Reductions Captured $0.24 Eliminate Icing Test on BF-S Captured $1.25 Classified desktop collaboration Captured $0.40 CDRL A009 Technical Data $0 00 Management Ptan go to As required Captured Deem Compliant for SDD Color Moving Map Registration Captured $350 Deferral of 2LOT Durability Test Retrofit Captured $10.00 Secure Data Transfer System (SDTS) 2.0 Implementation Captured $1'00 Page 22 of 57 I-UH Ubt: UNLT mm APPENDIX A: Cost Savings Initiatives Summary Ejection Seat Stand Support Equipment Captured $0.30 LOHAS JCS Verification Using existing data Captured 0-20 Eliminate engine trailer from Enginei?Lift Fan Trainer Captured $1.70 Air System Lifecycle Plan (ASLP) CDRL A001 Deletion or Delay $029 Climatic Chamber testing Captured $0.37 TMS to ALES Flight Schedule Transmission Captured $120 Re uirements vs. ilot mass on e'ection sezilt Captured $075 Classified Reduction} Captured $0.05 Stop WBDD RGA Re?design Captured $0.20 FT AMES WBDO Test Point Reduction Captured $0.06 Weapon Environment Test Point Reduction Captured $175 F-35 Elimination of weapon bay door open operation above 1.4M $025 F-SSB Crosswind verification through In Work $3.00 analysis Tablet Implementation at PAX River and In Work TBD EDW ITF Alternative ATEX Certification for select In Work $5.00 F-35 SE Vertical Landing TP Reductions In Work $1.30 901 Shock Test Removal For Heavy In Work $0.90 Weight Crane Reduce Weapons Delivery Accuracy In Work TBD (WDA)fLive Fire Timeline c. Improvement Program (RMIP): Total $1.78 Lite?Cycle Savings projected Initiative Name Captureden-Worleutu re Projected ROI Non LO Sealant Cure Time Reduction Captured 1565:1 Change Specific Panel Nutpiates to Reduce Maintenance Induced Failures Captured 130:1 Page 23 of 57 APPENDIX A: Cost Savings Initiatives Summary Replace Certain Door Fasteners to Eliminate need for inspections Captured 5'1 :1 Aircraft Fly Green Documentation Captured 12.8:1 Provide Repair Kit for F-35A Receptacle Captured 4?2:1 Engine Bleed Duct Inspection . Reduction Captured 19.4.1 F-3SC Rack Isolator extension to full life Captured 492:1 Inaccessibie Nutpiates Flaperon . Access Cover Captured 99.1 Turbomachine Ignition System Fault Isolation Improvement Captured 23'3'1 5-Hour Nutpiate Kit Test Captured 3331 :1 Replace certain Power Supplies with Latest Design to Reduce Returns Captured 1'6'1 Forced Retrofit of Integrated Power Pack Wiring Harness Captured TBD Engine Thermal Blanket Removal Captured TBD Forced Retrofit Warm Air Manifold Captured TBD Change Boarding Ladder Maintenance Concept to Allow Replacement of Captured TBD Rotary Latches Update maintenance equipment software to include safe aircraft door Captured TBD operation features Cover redesign to match new frequency access time Captured TBD Decal retrofit to LRIP 1 thru 5 aircraft Captured TBD Quick latch removai replacement without needing Outer Mold Line Captured TED restoration Component Grounding Strap Fastener Captured TBD Retrofit Page 24 of 57 APPENDIX A: Cost Savings Initiatives Summary Reservoir Remote Oil Sensor On Aircraft Replacement Captured TED Limits - Repairs Captured TBD Wingtold Stencils Captured TBD Interconnect Repair Captured TBD Seal Coating Replacement Captured TBD Gun Vent Bracket Captured TBD Provide precision pneumatic wrench to manually openlclose weapons bay Captured TBD doors ?3133: Sagan: Ego}: Back Maintenance Captured TBD tool Captured TBD Eg?nengl-Jic?gear Hubcap Safety Captured TB Emust Clamp and Engine Mount Thrust Captured TBD Canopy Field Repair Development In work 479:1 Eliminate Specific Access Panel In work 35:1 Nutplates in Fuel Tanks Page 25 of 57 APPENDIX A: Cost Savings Initiatives Summary Redesign Ground Power and Refuel Door Latches To Reduce Failures In work TED Fiber Optic Connector Improvements In work 5.2:1 Incorporate Fuel Filter To Eliminate In work 311 Clogging Improve Aircraft Hydraulic Ground Service Quick Disconnect Coupling In work 96.3:1 Design Lens Coating Durability In work 2402? Improvement High Durability Rain Erosion Tape for . Leading Edges In work 504.6.1 Fluid Drainage Map In work 135.2:1 and Power Pack Exhaust Retrofit In work 6.9.1 Trade Study to evaluate the Lift Fan Clutch hydraulic flow meter In work 698'1 Channel Unique Messages And The . Portable Maintenance Aid In work 78'1 Improved and field level repairs materials for air data probe In work 19'6? Remote lnpuUOutput Regression In work 155:1 Checks Use of E?Driil for Removing Fasteners for TeardownrDisassembly of In work 162'1 Oxygen Generating System Failures - Develop New Lubricant In work 660'6'1 Tactical Navigation System Inertial Electronic Unit - Software Rehcst In work 11'1 '1 Component Connector Fastener . Material Change In work 24'2'1 Inlet Foreign Object Damage Screens In work Weapons Bomb Rack adapters, Welded Clamp Assemblies Breaking In work 25311 APPENDIX A: Cost Savings Initiatives Summary General Systems Guides In work TBD Landing Gear Retract Actuator Hose Replacement In work 214.4.1 Change Request for Production Incorporation of RMIP Project 1035 In work TBD Wing Tip Light Lens Training Workstation High Failure Rate In work 6:1 Replace connectors with new design In work 2.9:1 Replace Nutplates to Eliminate Disbonds In work TBD Outer Mold Line Fastener Replacement In work TBD High Durability Tip for Radomes In work TBD Say Redesign To Improve Canopy Installation In work TED Information not available in Portable Memory Device. Minor incidents Require Crash Survivable Memory Unit In work TED removal for off-aircraft analysis Bus Interface Chip Improvement In work TBD Autonomic Logistics Information System Deployable Server Configuration In work TBD Upgrade Active Side Stick Control fActive Throttle Quadrant Assembly Switch In work TBD Cover Redesign Migrate to Portable Solid State Storage I Hard Disk Storage In work TED Back?up Oxygen Supply Charging Port In work TBD Redesign AIDU Design Improvement In work TBD EOTS Window Frame LO Material In work TBD Change Page 27 of 57 APPENDIX A: Cost Savings Initiatives Summary Replace Click Bond Nutplates with FTI Nutplates to Eliminate Disbends Future TBD OML Captive Fastener Replacement Future TED Replace Sealant With Polyurethane Impregnated Wire Mesh Gasket Future TBD {Sustainment Only Solution) Bay 102 Redesign To Improve Canopy Installation Future TED Mil-1394 Bus Interlace Chip Improvement Future TED Tactical Navigation System Inertial Electronic Unit - Sottware Rehost Future TBD Honeywell) II. Production Initiatives a. Block Buy: Total $2.238 Life-Cycle Savings projected Initiative Name Capturedfln-WorkfFuture Avoidance F-35A In Work $1.52 In Work $0.49 F-BSC In Work $0.22 b. Pratt Whitney War On Cost: Total Life-Cycle Savings to date Initiative Name? CapturedIIn-Worleutu re Avoidance per unit saved) CTOL Ti Split Duct with Variant Common Externals Captured $346300 Machine Socket to Molded Socket Captured $119,765? Achieved Purchasing Savings Captured $111659 Achieved Purchasing Savings Captured $115,953 Achieved Purchasing Savings Captured $95,085 Achieved Purchasing Savings Captured $93,674 l?gsiagncation Architecture Redesrgn In Work $84,444 Achieved Purchasing Savings Captured $78,109 Achieved Purchasing Savings Captured $73,362 Phase A Captured $69,000 Achieved Purchasing Savings Captured $67,916 Page 28 of 57 APPENDIX A: Cost Savings Initiatives Summary Achieved Purchasing Savings Captured $60,700 Achieved Purchasing Savings Captured $58,614 Achieved Purchasing Savings Captured $57,717 Achieved Purchasing Savings Captured $55,653 Dual Source Rear Augmentor Duct Captured $54,248 Achieved Purchasing Savings Captured $53,724 3F: Scrap Reduction. R1 Final Form Captured $49,000 Architecture Redemgn In Work $44,444 Achieved Purchasing Savings Captured $40,577 Achieved Purchasing Savings Captured $34,679 Achieved Purchasing Savings Captured $33,935 Achieved Purchasing Savings Captured $33,067 Intiggfeii?fsand vane scrap Captured 532,4?3 Achieved Purchasing Savings Captured $30,978 Homerun Flame Holder Captured $30,918 Achieved Purchasing Savings Captured $29,290 New SRR All TMC Parts Captured $27,844 Achieved Purchasing Savings Captured $27,363 TI IBR's to Alp Plan 8 Future $26,345 Achieved Purchasing Savings Captured $26,325 Achieved Purchasing Savings Captured $26,143 Optimize HFB Internal Geometrvr Captured $24,815 Achieved Purchasing Savings Captured $24,209 TEC Coating Cycle Time Reduction Captured $23,300 3rd Blade Casting EC LTA Pricing Captured $22,994 Molded Coating for CTOL eFlap Captured $21,607 Molded Coating for CTOL eFlap Captured $21,478 EeFlap Negotiations with Cobham Captured $20,355 Resource Tie-Rods from Baker Hill bid capture?j 519?170 for LRIP 2 and beyond. Heaterless Nose Cone in Work $19,000 Process Improvements Captured $17,527 lso-Grid Fan Case Cost Reduction Captured $17,500 APPENDIX A: Cost Savings Initiatives Summary Tl tBR's to Alp - Plan A Future $1?,167 Fan Variable Vane Anti Ice improvement {Flying Lead} Captured $16,159 Machining Scrap Reduction Airfoils Captured $16,066 New SRR - All TMC Parts Captured $15,702 Achieved Purchasing Savings Captured 514,835 *Top 50 initiatives only c. Blueprint for Affordability: Total Savings in LRIP 9 and t0 contracts Initiative Home (Ii-apturetln-Il?ihtirlci Future Avoidance BMI to Epoxy on Conventional Edges Captured Laser Surface Preparation tor Metallic $12 45 Aircraft Structure Captured J460 Bench Work on Drag Rod Captured $0.97 Transparencies Thermo Forming $3 54 Automation Captured PDU Bracket Integration (STOVL) Captured $0.90 Closed Volume Molding (CVM) of $11 61 Trailing Edge Components Captured Brake Temperature Sensor Removal Captured $0.39 Roll Control Nozzle Door Actuator $0 41 Resequence Captured Integrated Body Apertures $2 99 Acceptance Test Reductions Captured Redesign Upper Main Landing Gear $27 58 Closeout to solid laminate Captured Autodrill lor J475 Pan and Substructure Captured $3.60 CV MLG Retract Actuator Installation Captured $2.50 Pre?Cut 222200014 Conductive Tape Captured $5.28 PMM Structural Joint Drilling Captured $1.90 Replace 28Vdc BCCU with $20 41 Alternate Sub?tier Supplier Design Captured Shim Buttons Alternate Material - TBD Phase 1 Captured Shim Buttons Alternate Material TBD Phase 2 Captured Shim Buttons Alternate Material - Phase 3 Captured $1274 Replacement of Current LMA-MV1 18 $12 72 Form 3 Powder Passivator Captured Page 30 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturerln-Work/ Future Avoidance Remove Fuel Tank Coating from $38 99 Composite Parts Captured Develop Tethered Unit of Surface Analyst Tool Captured $2135 Aluminum Right Sized Machined $65 00 Forgings - CTOL Captured Eliminate Radius Blocks - J461r462 Captured $30.8? 610 LSL Cutting Tool Optimization Captured $4.73 Fastener Insertion Live Link System Captured $24.50 EOTS Alternate Source Gimbal Slip $5 62 Ring Captured Composite Male Tools and Aluminum $37 21 Chine Captured Introduction of HR 500 Reamers on $10 39 Assembly Captured Improved Shimming Operations (EMF a $2 47 Captured FLG CTOL Crank Arm Material $0 t0 Optimization Captured AIign-A-Drill Captured $0.95 CFC Independent Part Drilling Captured $1 Forward Fuse Laminate Shim $6 7.3 Improvement Captured Clutch Cooling Cover Bond?On Captured $0.45 Tape Gore Unitization Group 2 Captured $1.94 OIVIL Control and Seam Validation Captured $10.38 Tip Vertical Tailcap Rib Redesign Captured $5.05 Break?out Box for CV Arresting Gear $0 7.1 Door Rig Captured Removal of Structure Paint for Grommet $4 49 Installation Captured VT Root Fairings Booting Enhancements Captured $1356 OutBoard Wing Assembly Offload (CV $6 14 Only) Captured Pressure?Sensitive Boot Adhesive, Group 2, Phase 1 Captured Pressure-Sensitive Boot Adhesive, $16 47 Group 2, Phase 2 Captured Page 31 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name CapturerIn-Worki' Future Avoidance Shim Profile Captured $2.62 Seti-Tec Drill Motors for Captured $5.61 Liquid Shim Tolerance Ftelief Captured $2.99 Vertical Tail Fioot Coatings Captured $1.73 JSFB26 Safety Boit Elimination Captured $2.55 CTOL Bulkhead Flatness - Phase 1 Captured $2.14 PMM inspection Data Processing $2.65 Migration Captured Drill Motor Hole Counters Captured Deep Stacerimited Access Drilling Captured Exchangeable Head Cutters Captured $4.54 J460 and .1860 APFX PV Motor $8.82 Conversron Captured J450 Bonded Doubler Elimination Captured $1.69 Move Antenna Cover Installation to $1.12 Final Captured Station 0 Bracket Drilling Phase 1 Captured $4.24 Wing Subassembly Offload Phase 20 $5.58 and On Captured Hover Pit Test Elimination STOVL Captured $0.80 CV Arresting Hook - Beam Forging $3.31 Change Captured Substitute Ti for Inconel Bolts Captured $1.51 Fiber Optic Inspection and Cleaning Captured $8.51 Grommets for IR Holes Captured $0.67 J450 Automated Auto Drill Hole $057 Inspection Captured Vendor Applied PSA Group 1 Phase 1 Captured Vendor Applied PSA Group 1 Phase 2 Captured $2.84 PTMS V295N297 Deletion in Roll $2.64 Control Bay STOVL onlyr Captured Harness Installation Improvements Captured $10.01 J461r?2 Build Efficiency Captured $6.32 ?32212: 1to Type 10 Seam Conversmn Captured $28.33 3rd Quarter 2014 Rapid CRI Pilot Captured $5.70 Page 32 of 57 .EDB I me m? APPENDIX A: Cost Savings Initiatives Summary Initiative Name CapturerIn-Workt' Future Avoidance RIO - Parvlene Requirement Removal Captured $5.81 Network Daughter Board Transceiver $2 19 Replacement Captured FOG Inspection Fixtures Captured $0.81 Semi-Continuous Flushing Trade Study Captured $7.84 Remove Chassis Sealant Captured Seti Tec CV Trunnion Fittings and Tail $0 69 Hook Longeron Captured CTOL Gun Structure Redesign Captured $0.75 Strategic Schematic Drawing $8 72 Development Captured Reduced Fillet Sealing Captured $1.95 NBD Centre Hinge CTF Forging Captured $2.80 Masking Electrical Bonding Captured $3.65 STOVL Aft Closeout CTF Forging Captured $0.28 Tool Life Management 430 $2 61 PMM Machines Captured SB CMM Point Reduction Captured $2.25 Click Bond Paint Restoration Captured $2.00 Hinge Support Frame Billet Optimization Captured $1.03 Surface Finish Improvements IWO $0 94 Strain Gauges Captured Terma Reduced Compactions Captured $0.20 CTOL Tail Hook Door Bow Strap Frame Details Billet Optimization and $1.42 Waste Removal Captured LHS Fuel Floor Fitting Reduction Captured $0.32 CTOL 8: CV Tube Re-design Captured $1.91 J351 Additional Major Sub-Assembly $0 3? Offload Captured Gun Drive Hydraulic Hose Installation Captured Phase 2 Application of flex hoses Captured $4.24 208H00707 MSE Bay Inbd Skin 00- $0 7.1 cured part (KDA) Captured Elimination of Fuel Tank Coating from $0 54 Composite Captured KDA Mutt Part Tool Captured $4.76 Page 33 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturefln-Work! Future Avoidance Fabricated Simulated F1 Tank Closeout $0 29 Panel Captured Hot tvlett Fastener Fill Processing Captured $9.66 Altitude Test Removal from Parker Rudder and Fiaperon Electronic Unit's $0.91 ATP Captured Wing Subassembty Offload Phase 2D $35 43 Phase 1 Captured Wing Subassembty Offload Phase 2D Captured TBD Rapid CRI - 4th Quarter 2014 Captured $6.30 IFRR Doors Installation and Rig Captured F-35 Transparency Lamination Primer $0 08 Fixture Captured Seam Type 5, 6, 6 7 Gap Tolerance $0 91 Relief Phase 1 Captured Seam Type 5, 6, 6 7' Gap Tolerance TBD Relief Phase 2 Captured KDA VLE/Rudder Supplier Second 98 Source Captured Autodrill Bundle Captured $1.97 Engine Nacelle Fan 2nd Source Phase 1 Captured $1 4'54 Counterseal Option on Composite Skin $0 70 Holes - Captured EHA Fill And Bleed Improvement Captured $2.94 Flaperon Blade Seal Pocket Ftemoval- $2 31 CTOL Captured Rapid CRI 1st Quarter 2015 Captured $5.30 Vendor Cut Mod Temp Boot Kits Captured $4.27 VT MADL ?Bird Cage" Subassembly Captured $13.23 Direct Buy of PPS Captured $35.04 J8Ftv153 Plug Materiat Change Captured $0.31 Honeywell Rolling Stock Supplier Incentive Captured $936? CFF Work Instruction Efficiency Captured $4.23 Type 8 Seam Production Improvements Captured $772 Alternate FIP Seam Material - Phase 1 Captured TBD Alternate FIP Seam Material - Phase 2 Captured $50.15 Page 34 of 57 FOR IIQF DNI ft 2 APPENDIX A: Cost Savings Initiatives Summary Initiative Name CapturefIn-Workr' Future Avoidance Reduce Heat Ex Duct Attachments Captured $0.48 Lockwire Attach Bracket Replacement Captured $0.05 Radius Block Elimination Captured $1.46 Shim Manufacturing Of?oad! Shim 55? 70 Management Captured Pro?profiled WBD Rubstrips Captured Redesign Harness Ftout through DAS $1 03 Conduit Captured LFE Longeron Redesign STOVL Captured $2.37 Composite Material Tracking Captured $0.58 Preformed Ramp Seals Captured $1.52 Splice Plate Frame, Inlet Lip Support Captured $0.19 FLG CV Shank Forging $0 63 Improvement Captured CF2 ROM ER Arm for Structure (Laser $4 0? Gauge) Captured V-Tip VSWR Improvement Phase 1 Captured TBD V-Tip VSWR Improvement Phase 2 Captured $1.03 KDA Improve PMM Capability Captured $1.58 Transparency Reusable Shipping $0 1? Crate Captured Transparency - Automated Insertion $0 35 Loss Inspection Captured Pressure Seal Adhesive Change and $0 63 One Piece Lamination Gasket Captured Transparency - Replace Primer Coating $0 40 on Inner and Outer Bushings Captured Transparency - Precut Busbar Foil Tape Captured $0.38 Aluminum Right Sized Machined $2 42 Forging - STOVL 518 Upper Captured Bonded Nut Plate Shainin Red SRR $4 69 Reduction Captured IPP Scoop Door Final Install Move to $0 15 J830 Captured Forward Fuselage Sealant Application $1 38 Deep Dive Captured Use a Common Engine Feed Wash $2 T1 Filter Across All Variants Captured Page 35 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name CaptureIIn-Work/ Future Avoidance GE EPMS - 28V Connector Change Captured $0.57 PTMS Speed Control Valve Direct $2.08 Buy Captured Leading Edge Flap Seam Validation $3.18 Deep Dive Captured Rapid CRI 2nd Quarter 2015 Captured $9.30 EHAS Moog Production Efficiencies Captured $4.74 Moog EHAS lsolators 8t Fasteners $8.82 Direct Buy Captured Reduce 213 Usage in AFF Captured $2.06 BAE Producibility and Testing $134 Changes Captured Torx Dot Elimination Captured $60.57 Tiebar Solid Dry Film Lube Removal Captured $0.38 JSFY18 Cable Second Source Captured $5.30 Move Seat Components to Flight Line Captured $0.32 Re?Source Casting Supplier Captured Videos For Assembly Quality $1.39 Improvement Captured Second Source CTOL LSA Work Captured $4.91 NGC Rapid CRI (3rd Quarter 2015) Captured $2.50 Duct Drilling Apply Fixture (DRPE) Captured $0.44 ROMER Arm tor KC Exit Shoot Captured $9.93 161 DRFC Drilling and Locating Tool Captured $0.69 UTAS Supplier Incentive $4.60 Program Captured NGC Rapid CRli4th Quarter 2015 3 $12.53 2016 Captured CV Wing?to?Body Custom Boots Captured $0.69 Second source sub-tier supplier for duct component in the IPP Bellows Duct $3.09 Assembly Captured AFF Shadow Masking Aids Captured $9.32 ATF Data Collection Enhancement Captured $235 Rapid 3rd Quarter 2015 Captured $24.20 Internal Control Surface Lock Tool Captured $0.39 Captured $15.03 UTAS Engine Starter Generator Page 36 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name CapturefIn-Worki' Future Avoidance Producibility Improvements Radar - dumpers and Isolates $6.72 Elimination Captured Radar Drain Power Supply 2nd Source $432 Components Captured Sealant Deep Dive Captured $3.55 Transfer of Canopy Coatings to Pinellas Captured $5.1 1 Component Thick Spray Elimination For $2.46 Multiple CFF Parts Captured UTAS ATP Testing Reduction Captured $0.01 Pylon Covers and Miscellaneous $0.99 Revise Tooling for Shadow Masking Captured Lime Printed Wiring Board (PWB) $125 Transition PHX to PRE Captured Configuration Checks with PHM Captured $3.67 Convert Casting to Machining IPP RAM Air Duct Captured Tri-Company Rapid Captured $0.68 Integlrated?Body Apertures Single UHF $2.94 Configuration Captured Eliminate Electrical Bond Inspections Captured $45.3? Rapid 4th Quarter 2015 Captured $8.00 F-35 0A Inspection Optimization Captured $12.15 CNI MADL MMIC Combined Buys Captured EOTS - Rapid Phase I Pilot Captured $1.68 d. Multi-vear Procurement (Lockheed): Total Savings TBD Initiative Name CapturedIIn-Worleuture Avoidance F-35A Future TBD Future TBD F-SEC Future TBD a. i'viuIti?year Procurement Royce): Total Savings TBD Initiative Name Capturedi'ln-WorkfFuture Avoidance Future TBD Future TBD Page 37 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Captureden-WorkfFuture Avoidance Future TBD Sustainment Initiatives b. Sustainment Cost Reduction Initiatives (SCRI): Total Savings TBD Initiative Name Future Avoidance! Status BMI to Epoxy on Conventional Edges In work TBD Canopy Thermoforming Automation in work TBD LGS - Brake Temp Sensor Removal In work TBD Second Source 18 Processor In work TBD VT Root Fairings Booting Enhance In work TBD Type 8?10 Seam conversion phases In work TBD E:Lw:gl;nl13:rtliighter Board transceiver In work TBD Hot Melt Fastener Fill Processing In work TBD Ellgijuedggest Removal From Rudder and In work TBD Engine Nacelle 2nd Source In work TBD Vendor Cut Mod Temp Book Kits In work TBD Direct Buy of SR ES PPS In work TBD Rolling Stock Supplier In work TBD Transparency-Reusable Chipping Crate In work TBD Esagesgtaggnoy Automated Insertion Loss In work TBD tortoisesrmgiimrcan?? mm Transparency Precut Busbar Foil Tape In work TBD machined Forging In work TBD Bonded NutPIate SRR In work TBD Palmdale Honeycomb Process Phase 1 In work TBD Engine Feed Wash across In work TBD GE EMPS - 28V connector change In work TBD speed control valve direct buy in work TBD Mood EHAS Isolator 8L Fasteners In work TBD Page 38 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturefln-Workf Future Avoidance! Status JSFW26 1 Torx Hot Dot Elimination In work TBD JSFY18 - Cable second source In work TBD Pressure Sensitive Boot Adhesive In work TBD CV Wing to body custom booting In work TBD gegclignedlos?grg?cstu?ise; supplier In the In work TBD Radar Jumpers and isolates Elimination In work TBD Radar Drain power Supply Improvement in work TBD UTAS - ATP Testing Reduction In work TBD UTAS PWB Transition PHX to PFIE In work TBD g?igiglted Body Apertures - Single UHF In work TBD CNI MADL MMIC Combined Buys In work TBD Replace 28V BCCU In work TBD Pre - Cut Tape Z14 Tape Kits for CFF In work TBD to. Cost War Room: Total Cost AvoidancefSavings $6073 to date Initiative Name Capturefln-WorktFuture AvoidancetStatus Captured $09668 Radar System Pricing Captured $4.388 EC DAS Sensor Pricing Captured $2.458 Cost Reduction Captured EPMS Pricing Initiative Captured $1.478 AIS Pricing Initiative Captured $1168 Scuff and Refresh Captured $1 .723 USAF SE Bobtails Captured Handheld Imaging Tool Captured $00183 Ordnance Lift System Part 2 Captured Heavyweight Crane Captured $00558 Missionized Gun Pod Part 2 Captured $0.021 QTY Optimization. Captured $00058 Analytical Condition Inspection Program Captured $03908 PCD Cost Reduction Captured Page 39 of 57 WW APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturefln-WorkiFuture Avoidancer'Status Ew Cost Reduction Captured $04788 EHAS Pricing Initiative Captured $08488 Captured $1823 USMC MX Training Device Captured $03198 Landing Gear Pricing Initiative Captured $08558 Ordnance Hoist System Captured $001948 Pylonqun Pod Captured $00038 Handheld Imaging Tool (HIT) Captured $004128 SE Sustainment Fee Captured $01608 CLS Labor PT 1 Captured $03488 Removal of DLR Adder Captured $62008 SE Qty Optimization, Rev AA Captured $00038 ALIS Tech Refresh Cost Refinement Captured $052998 Training Flares Captured $0.28 AV Mod CER Captured $9.68 MS Mod CER Captured $2.68 Propulsion Mod CER Captured $2.78 Scrap Paris Reclamation Captured $0.118 688A Engine Overhaul Captured $1.58 Fuel Consumption Captured $2.48 Fuel Consumption USAF Captured $048 SE LO Repair Verification Radar Captured $0.28 SE ?Just Do Its" Captured $0.18 SE Don Multipath (cart reduction) Captured $0.68 tgudsepot scuff 8 refresh verification Captured $1.28 32332353Egng?ti'?i?ji?iga Captured $3.03 LO HRS, LO RVR, SE MP, SE Captured $18008 Reduction Training CLS Reduction Captured $22958 US TRANSCOM - shipping Captured $00328 Airframe depot maintenance strategy Captured $13.68 Page 40 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturel'ln-WorkiFuture AvoidancefStatus Engine Wash In?Work $0.38 Depot Interval Extension ln-Work $11.08 Variant: Power Lift Burn In?Work $0.108 Fuel Burn Reduction In-Work $2.18 Repair Data - ACE In?Work $0.108 Three-Bearing Swivel Module oust {as} increase life to 3K hrs. $0303 Augmenter Flame Tube Alignment In?Work Simpli?cation $0103 388M Shim Elimination In-Work 0.1118 8: LSFP Reliability In?Work TBD LiftFan ATP Reduction In-Work ~$0.0208 388M Domestic Process Improvements In?Work ~$0.00358 Re-source of the 388M Casing Flanges In-Work ~$0.0098 Remove Pressure Rake Provisions from ln?Work Mainframe $000038 HCU Machine in Load-M006 In-Work ~$0.001 Ram Rod 8: Cylinder Machine in load ln?Work .. MOOG $00028 NOVA Machining Improvements-MOOG In-Work ~$0.0038 LiftFan-Simplify FCOC Mount ln-Work ~$0.00068 Oil Tank Assembly Damage (NOD) In-Work ~$0.0108 Repair of Minor Damage to CIAM In-Work Segment-NOD 0028M Casing Cleaning Procedure-Dry In-Work ?$00343 Front strutted case repair-NOD ln-Work ~$0.0038 Ring NO Seal In?Work ~$0.001 Gearbox Intermediate support (NCD) In-Work ~$0.00038 Eiectricai Harness IPS, In?Work Unison Ring Lever In-Work ~$0.00188 #3 Bearing Retainer Repair for In?Work .. Corrosion?NOD 330000098 RP Nozzle Life Extension-Indy RR527 In-Work RP Master Flap Lite Restriction In?Work Removal?RR530 $00058 Page 41 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturelln-WorkfFuture AvoidancelStatus 388D Slot Shim Holder In-Work ~$0.00858 3880 Slot Stamp In-Work ~$0.00438 O1 one?oft TV savings 2016 ln?Work ~$0.00028 Clutch Bearing Preservation Process In-Work ~$0.00138 Delivery (14 projects)?thru ln-Work $0.168 2015 GB Delivery {24 projects) In-Work 350.1368 2014 G3 Delivery projects} ln?Work $00438 2013 8: Before (6 projects) In-Work $00118 ATS PBL In?Work ~$0.58 Hlle Re-Use CONOPs ln-Work TBD PFE PBL ln?Work TBD Ejection Seat In-Work $0.48 Organic Pilot Fit Facility In-Work TBD CADIPAD Hybrid Management Solution ln-Work TBD Tech Refresh {Phase 2&3} In-Work T8D New Headsetis In-Work ~$0.0678 Qty Optimization Rev AC In-Work ~$0.0058 Organic Calibrations ln?Work T8D Block 4.2 Updates Future T8D Fiber Optics Transceiver Future TBD AV Smart Start Future TBD USAF Multipath Future $03438 New Engine Trailer Future $0.1 128 Bottom up SE Layvin tor ACE (Sust) Future TBD SE Global Pooling Future TBD Red Air USMC Future $1.08 Red Air USN Future $1.18 Red Air USAF Future $3.48 ALIS GDR Redesign Future TBD Fuel Consumption USAF ll Future $6.88 Training ACE Future $22. 48 ALIS Managing Future TBD Page 42 of 57 APPENDIX A: Cost Savings Initiatives Summary Initiative Name Capturerln-WorktFuture AvoidancefStatus ALIS Admin Automation Future TBD Procurement Optimization Future $0.248 National Sustainment Center Future $1.98 LO Factor Future $0.78 LO Fastener Plug Future $0.38 Mx Manpower Modeling Future $0.768 corrosion sensor Future T8D Chemical Biological PFE Future TBD FH Short?Term Realism Adj Future TBD DSP Qty Future TBD c. SIP: Total Cost AvoidancerSavings to date Initiative Name Capturedrln-WorkfFuture Avoidance Exceedance Management System Validated/Complete TBD Improvements (Part I) BOSIIOSIPOS Improvements ValidatedfComplete TBD Air Vehicle HRC Disposition ValidatedfComplete T8D Propulsion HRC Disposition ValidatedtComplete TBD JTD VIR Incorporation ValidatedfComplete TBD JTD of Interim Maintenance ValidatedrComplete TBD Procedures Electrical Power System (EPS) ValidatedrComplete TBD Systems Integration Maintenance Mode activation Repair Turnaround Time ValidatediComplete TBD Improvement for Top 10 Suppliers PMAKMVI Connectivity lmplementedtValidat?on ln- TBD Work (Top 20 Driver #16) Nutplate Issues lmptementedNalidation ln- T8D Work Cure Time Electrical ValidatedICompIete TBD Bonding for 31 LRUs Cat AR Burndown ValidatedrCompIete TBD DQIM Suppliers on contract to ValidatedrComplete TBD provide EELS Accelerated SPIR releases ValidatedrComplete TBD Y?Adapters for comm cords (enables Implementation In-Work T8D maintainer to follow FSE during launch troubleshooting) Removal of heat blankets forward of ValidatedrComplete TBD frame 496 above 88 WL Page 43 of 57 APPENDIX A: Cost Savings Initiatives Summary Expansion of General Series manual Validatedi?Complete TBD tech data NSN cataloging of all Spares ValidatedfCompiete TBD Forced Ftetrofit of Alternating Current ValidatedrComplete TBD Contactor Module (ACCM) Harness Improvements (cancellation, Vatidatedr?Complete TBD extension, bundling, supportability) Qualification of military ALIS Admins ValidatedfComplete TBD to perform basic functions (eg. password resets) ALIS Admin expansion of coverage ValidatedfComplete TBD hours DQIM process improvement for mod ValidatedfComplete TBD kit EELs Temp Cont, l.r?liarm Air Manifold V14, ValidatedrComplete TBD Bundling of JTD tasks to improve ValidatedfComplete TBD work order task sign-off SE deliveries ValidatedfComplete TBD CGAC thermal improvements ValidatedfComplete TBD EHA retirement Blow VaiidatedfComplete TBD by condition F35-AAB-A130000001 1- Integrated Power Package (IPP) ValidatedfComplete TBD cycle count limit DP301 Sensor, HOT Air, TMS, ValidatedfComplete TBD moisture failure of the electronics Valve, APU Mode, Overboard ValidatedfComplete TBD Nacelle Ventilation Fan qualification ValidatedfComplete TBD fails power quality and environmental conditions dealing with saHfog. Thermal Management System (TMS) ValidatedfComplete TBD Fan, failed reliability test BCCU Battery Upgrades, cold ValidatedfCompIete TBD weather failures Power Distribution Centers (PDC) ValidatedfComplete TBD multiple modules failing ESG Pump Module? SDD During ValidatedJComplete TBD attitude testing the LSP failed because its housing cracked ATQA HOTAS Qualification Test Validated/Complete TBD Failure, Cable hinge action caused a fatigue failure of the conductor strands inside the cable. Equipment Furnishings Cockpit ValidatedfComplete TBD Control Panel Maintenance Plan Fuel Tube, cracked at the temp Validatedf?Complete TBD sensor weld. Page 44 of 57 APPENDIX A: Cost Savings Initiatives Summary and Parkbrake TBD failures after 50 cycles (Top 20 Driver #05) STOVL Tire wear Solution In?Work TBD exceeds safety limits LAG greasefzerk fittings procedures ValidatedfComplete TBD in JTD Lens Assy and Light Engine failure TBD OBOGS requires 2 HEPA Filter TBD elements to satisfy Protection Factor requirement Fibre Channel Switch firmware ValidatedrComplete TBD errors, fails Block 28 spec performance Display Management ValidatedrComplete TBD Ccmputen?Helmet (DMCH) Software Loadlssue DSM software update needed, TBD required for night flight clearance Signal Processor high RTOK ValidatedrComplete TBD associated Fiber Optic failures GP Processor high RTOK, Validated/?Complete TBD associated Fiber Optic failures PCD ELECTRONICS UNIT (PCD- Validated/Complete TBD EU) Power Supply Cockpit Mapping, no released Validated/Complete TBD maintenance plan or approved tools HVI Cables are failing at a higher ValidatedfComplete TBD than predicted rate causing a shortage of supply RIO HARDWARE UPDATE LRIP 3 ValidatedrComplete TBD VMC FLASH REDESIGN FOR DMS Validatedr?Complete TBD Implement Fully Qualified UH Validated/Complete TBD Power Amplifier Implement Fully Oualified Dual ValidatedfComplete TBD Channel Transceiver Canopy Boot Repair Procedure ValidatedfComplete TBD Lack of LO Guidance for Performing ValidatedfComplete TBD Repah Weapons Bay Doors ValidatedrComplete TBD Vertical Tail Bulb Seals are deflecting Validatedr?Complete TBD out of proper OM L. (Top 20 Driver #12) Redesign Implementation ln?Work TBD Ground Power and Refuel Door Latches to Reduce Failures Arresting Hook Assembly Implementation ln?Work TBD Installation Issues Control, Engine Electronic FADEC TBD Fuel Augmenter Pump (Engine) ValidatedrComplete TBD Page 45 of 57 APPENDIX A: Cost Savings Initiatives Summary lWater PPM measurement in oil Validatedi?Complete TBD samples does not even pass when tested in original container EnginefAirframe Compatibility Validatedi?Complete TBD Assessment (EACA) Oil Tank Mount Brackets, Link, ValidatedfComplete TBD and Pin Extension of Engine Oil Sampling ValidatedfComplete TBD from 5 to 10 Hours Lift Fan Uplocks ValidatedfComplete TBD Seat Portion Assy ValidatediComplete TBD EW Receiver (EW Module) ValidatedfComplete TBD CM Controller Validatedi?Complete TBD Data Xfer Cartridge Validated/Complete TBD DQIM EEL Guide Update ValidatedfCompiete TBD CEVA Warehouse EEL birthing Validatedi?Complete TBD Fleet Warehouse EEL Birthing ValidatedIComplete TBD Oil-Board TCTD Process ValidatedfComplete TBD 50 Hour Landing Gear Alt. Extension ValidatedfComplete TBD PAIR Extension to 400 Hours P00764 Lack of authority to locally ValidatedfComplete TBD manufacture simple items Fleet Status Report ValidatedfComplete TBD Multi Function Probe ValidatedfComplete TBD P000513, P00626, P009536 - (A21) ValidatediComplete TBD Bleed Air System Ducts Engine and Integrated Power Package Bay (2MZH08010) (Top 20 Driver #19) P00158 (A99) ln-Work TBD INSP EOTS Window; EOTS PANEL Assembly P013600, POSQQC, P1110, P1111 ValidatedfComplete TBD 270V Battery Inspect for Resistance Check on BCCU P003213 (A95) PD1041 Neck ValidatedfComplete TBD Protection Device Cylinder (A32) MLG Retract Actuator Validatedi?Complete TBD Hose Replacement P00564 (A56) (A56) Flexible Linear Validatedi?Complete TBD Shaped Charge Assembly (FLSC) Legacy Publications in JTD Validated?Complete TBD Fleet Engagement ValidatedIComplete TBD Nacelle Heat Blankets - Removal of ValidatedfComplete TBD Double Sealant Requirement Extension of AllfPartiaI Engine Validatedi?Complete TBD Borescope Plugs (13) from 25 to 50 Hours Page 46 of 57 APPENDIX A: Cost Savings Initiatives Summary Extension of lift tan oil sample to 10 Validatedi?Complete TBD hours PMA and Cable Conopsi?Mx Plan ValidatedfCompiete TBD Roll Control Nozzle Validatedr?Complete TBD Door inspection (Top 20 Driver #14) ALIS-SAP Solution In?Work TBD integration Gaps - Life Limited Parts Forecasting Capability SAP Auto Replenishment Capability Solution In-Work TBD Out of Commission Aircraft Report Validatedi?Complete TBD Modeling Field Reliability ValidatedfComplete TBD Performance to Prevent Future MICAPs 25-Hour Engine Borescope Port 5 to ValidatedfComplete TBD 50 Hours LO Training in the Field ValidatediComplete TBD New Power Mode for MS That Could Solution ln-Work TBD be Supported with IPP MVI Cable Durability ValidatedfComplete TBD Augment Unit Level Mod ValidatedfComplete TBD Prep;i Restoration with Depot personnel Availability Impact of Seed Assets for ValidatediComplete TBD Mods 2014 Use of Depot personnel to Clear ValidatediComplete TBD Deferred Work Orders During Mod Grooming Depot Engine Inspections Concurrent ValidatedfComplete TBD with Aircraft Mod PARTS DELIVERED WITH KNOWN Validatedr?Complete TBD MFR IMPACTS Bonded Stud ?Replace, F35-FAA- Validatedi?Complete TBD A5141020000-921A-A Bore Scope Shortage Work Around ValidatediComplete TBD Model Engine Borescope requirements VaiidatediCompiete TBD Engine rotation tool requirement ValidatediComplete TBD Priorities PDM. SDN Part Number ValidatedfComplete TBD List for Military Flight Release (MFR) Configuration Management (CM) baseline update PMD Reader Maintenance Conops ValidatedfComplete TBD Panel 210?f2108 Rigging Procedures Validatedr?Complete TBD Power Off Refueling (With Battery on Validatedr?Complete TBD Entire Operation) (Top 20 Driver #18) Rain Erosion Solution In?Work TBD Thickness Lift Fan Inlet Actuator Failures ValidatedIComplete TBD Page 47 of 57 APPENDIX A: Cost Savings Initiatives Summary Canopy Open Towing- Safety Validatedi?Complete TBD IPP Refueling ValidatedrComplete TBD Transparency Film Repair Study Solution ln-Work TBD Fiber Optic Connector Improvements Implementation ln?Work TBD Change Boarding Ladder ValidatedfComplete TBD Maintenance Plan to Allow Replacement of Rotary Latches Incorporate ICC Fuel Filterto Solution ln-Work TBD Eliminate Chassis Clogging (Top 20 Driver #20) Replace Click In-Work TBD Bond Nutplates with FTI Nutplates to Eliminate Disbonds Redesign HCI Cable to Reduce ln-Work TBD Failures Forced Retrofit of Improved CTOL ValidatedfComplete TBD Mode Strut Replace MLG Door Fasteners to ImplementedNalidation In- TBD Eliminate PAIRS Work Back Shop Battery Charger (8880) FundingiApproval ln-Work TBD unable to meet battery servicing and shipping requirements Replace Aircraft Hydraulic Ground Solution ln-Work TBD Service Quick Disconnect Couplings wih Improved Design Provide Optical Backscatter ValidatedfComplete TBD Reflectometer R) Plan to Troubleshootl'T est Aircraft Provide Optical Backscatter ValidatedfComplete TBD Reflectometer and Fiber Optic Extender Card Set Update PMA Software to Include ValidatedJComplete TBD Safe Aircraft Door Operation Features OML Gap and Mismatch InSpection Solution In?Work TBD Tooling Mx Plan Review - Aircraft Fly Green ImplementedNalidation In- TBD Documentation Work Wingtip Lens Durability Improvement In-Work TBD Substitute Faster Cure Alvis-32?? for ValidatedrComplete TBD AMS 3281 Provide Repair Kit for CTOL AR ValidatedfComplete TBD Receptacle STOVL MLG Refract Actuator Hose ValidatedfComplete TBD Clocking Gage (SOSA R15) Canopy Boot Repair lmplementedealidation In- TBD Work Engine and ESG Oil Servicing Decal Validatedi?Complete TBD Retrofit to LRIP 1 through 5 Aircraft APPENDIX A: Cost Savings Initiatives Summary Quick Latch Removal and Validatedi?Complete TBD Replacement Without Needing LO Restoration Revise Tube Routing to Avoid ValidatedfComplete TBD Damage to Insulation During Latching Small Fiber Optic inspection Probe VaiidatedfCompiete TBD for ICP Backplane inspection Litt Fan Driveshaft Forward End VatidatedfComplete TBD Support Equipment J26012 Modification for AAI Door Clearance FADEC Bucket Grounding Strap VaiidatedfComplete TBD Fastener Retrofit [Top 20 Driver #04) IDLO lmplementedealidation ln- TBD identityiLocate Parts Work nose jack adapter ValidatedfCompiete TBD Document All Maintenance Repairs Validatedi?CompIete TBD and Post ATF in LOHAS from Factory Prior to Delivery PAD Issues Implementedealidation ln- TBD Work How Do We Ensure Maintenance ValidatediComplete TBD Done Outside the Maintenance Concept are Captured in FRACAS and JRMET Data Supply Turn-in Process Improvement Implementation In-Work TBD Composite Repair Capability - AR ValidatedfComplete TBD Problem ALIS Tying Incorrect Solution Set to VaiidatedfComplete TBD HRC Engine Oil Sample from 10 Hours to ValidatedtCompiete TBD 30 Hours Limits Expansion for Engine ValidatediComplete TBD Components (LRIP 5-8) Leak Test Capability Validatedi?Complete TBD Insufficient QTY of OBOGS Testers VaiidatediComplete TBD EHA Fail Fault isolation ValidatedfCompiete TBD Accuracy of Estimated Delivery VaiidatediComplete TBD Dates Negatively Impacting Maintenance Decisions in the fleet CMMS Usability Improvements ValidatedfComplete TBD Part Precedence Does Not Allow Solution ln-Work TBD Lower Dash to be Installed Improve Eglin F-35A Availability VaiidatedfCompiete TBD Mx Plan Review - Ejection Seat ln-Work TBD Mx Plan Review IPP Turbomachine TriageiPrioritization In?Work TBD Change (Top 20 Driver #08) Nix Plan Review Implementation In-Work TBD Landing Gear BCA APPENDIX A: Cost Savings Initiatives Summary Mx Plan Review - HMDS In-Work TBD Hal Process Specs and Finish Codes ImplementedNalidation ln- TBD in JTD Work Engine Change Maintenance Time - ValidatedfComplete TBD Reduction Improve Availability of CGCAC ValidatedfComplete TBD Top 20 JTD Incorporation ValidatedfComplete TBD VMC Issues Validatedi?Complete TBD Create process to orderfmake parts Implementation In-Work TBD that are not part of M): Plan (AR Response) SAP Integration with ALIS Validatedi?Compiete TBD Tracking Availability More Routinely Implementation In-Work TBD Antenna Damage Limits and Repairs lmplementedr?Validation ln- TBD Work Download AMD with the Gem ln-Work TBD Nuisance Filter List, Script Needed to FundingIApprovaI In-Work TBD Clear Open Workorders Anomalies and Validatedi?Complete TBD Limitations - JTD Table Mx Plan Review Tire and Wheel Solution In?Work TBD (Includes NDI and Repair Procedures) Engine Duct Removalilnstallation Validated/Complete TBD Follow-On Maintenance Multiple Engine Runs PAO DraianiII Requirement for MS ImplementedNalidation In? TBD Line Replaceable Components Work Actions (Top 20 Driver #01) TRUTRZ Implementedi?Validation In- TBD Troubleshooting - Mission Systems Work PAIR Improvements ValidatediCompiete TBD (Top 20 Driver #10) TCTD Mod Kit Solution In-Work TBD EEL Part Loading - Automation Mx Plan Review Fuel System Water ImplementedNalidation In? TBD Drain Valve Capranyard Work Schematics Diagram for Electrical ImplementedNalidation In- TBD Systems Work Aircraft Acceptance Timeline - SIA ValidatedfComplete TBD Drainage Map Implementation In-Work TBD Electronic Warfare FWD and AFT Validated/Complete TBD AEM LRC Multiport connectors CTOLICV IPP Exhaust Retrofit Implementation In?Work TBD Mx Plan Review - Reservoir Remote Implementation In-Work TBD Oil Sensor On Aircraft Replacement Change Cockpit Rudder Pedal VaiidatediComplete TBD Installation to Reduce Cure Time APPENDIX A: Cost Savings Initiatives Summary Trade Study to evaluate the Lift Fan Implementation In-Work TBD Clutch hydraulic flow meter HAZDEC Certification ValidatedfCompiete TBD Facilities Mx Plan Review - Vendor (Harris) ValidatedfComplete TBD Rack Components Terahertz Coating Thickness Probe Solution In?Work TBD Rapid Repair Nutplate Kit Solution In-Work TBD Parachute Harness - Separate Validatedi?Complete TBD Components - Add LCNs ALIS Workorder Severity Capture Validatedi?Complete TBD (Work Order - Maintenance Action) Power Off Refueling (With Battery on ValidatedfCompiete TBD Only at Start of Operation) ALIS to LDM Maintenance Event ValidatedfComplete TBD Notification Message Capture Mx Plan Review - EOTS Panel lmplementedr?Validation In- TBD Assembly - Create Damage Limits Work Flexible Linear Shaped Charge ValidatedfComplete TBD Procedure improvement Communications Newsletter ValidatedfComplete TBD Crosstalk PHM Data Release for Review ImplementedNalidation In- TBD Work Institute Commodity TCTD Implementation In-Work TBD JTD Release - Shorten Time ValidatedfComplete TBD Between Releases JTD Review Process - Validatedi?Complete TBD Burndown Effort Operations Block Upgrade ValidatedfComplete TBD Academics Hypoxia Procedures ValidatedfComplete TBD ICAW Troubleshooting ValidatedfComplete TBD Fuel Contamination Part Validatedi?Compiete TBD Maintenance Block Upgrade VaiidatedfComplete TBD Academics PAO ServicefBleed Requirements Validatedi?Complete TBD Missing PMD Signals Require CSMU In-Work TBD Removal CV Wingfold Stencils Validatedi?Complete TBD PTMS Deletion in Roll Implementation ln-Work TBD Control Bay STOVL Only (Ref 5639) Bay 102 Redesign To Improve FundingiApproval in-Work TBD Canopy Installation Full Life CV EU Rack Isolator Implementation in-Work TBD Non Destructive Inspection Implementation In-Work TBD APPENDIX A: Cost Savings Initiatives Summary ESD Item Handling Validatedr?Complete TBD ALIS-SAP Integration Gaps - CMMS Implementation in-Work TBD ?Failure Data? Feed to EEL (ServiUnserv Tag) Add Hot Brake Inspection Validatedr?Complete TBD Requirements to JTD JSRD Updates for Composite Validatedr?Complete TBD Repairs EEL IUID Management Solution In-Work TBD ALIS-SAP Integration Gaps - ALIS Solution ln-Work TBD Downtime Visibility ALIS-SAP Integration Gaps - Solution ln-Work TBD Purchase Order Alignment (Top 20 Driver #15) In?Work TBD Integration Gaps - Identification of Unserviceable Assets Integration Gaps SOR ValidatedfComplete TBD Instructions Failing to Reach Base TMS Issue - Advanced Shipping Implementation ln-Work TBD Notification (ASN) Integration ALIS-SAP Integration Gaps - Unit of Solution ln-Wcrk TBD Measure ALIS-SAP Integration Gaps - Solution ln-Work TBD Configuration Management of Functional LCN ALIS-SAP Integration Gaps - Solution ln-Work TBD Enhancement for Site Visibility of Unique Material Identifiers ALIS-SAP Integration Gaps - Supply Solution ln-Work TBD Requisitions Transferring with Aircraft Red Gear Delivery with Aircraft ImplementedNalidation In- TBD Delivery; Work Increase Mechanic Buy?In on Serial ImplementedNalidatton In? TBD Numben?Part Number Accuracy Work Increase Accuracy of Serial Numbers ImplementedNalidation In- TBD in ADBOM Work Government Unit Acceptance Team ValidatedfComplete TBD (GUAT) - Improvements Create a Template to Standardize ValidatedlComplete TBD Acceptance inspection Integration Gaps Missing In?Work TBD Data Elements from ALIS for Repairs and Demands Future Sustainment Repair Initiative Implementation In?Work TBD for Supplier Repairs MLG Axle Cad Plating Detection Implementation ln-Work TBD Procedure and Repair to JTD (Top 20 Driver #02) RIO Regression ImplementedNalidation In- TBD Checks Work Page 52 of 57 APPENDIX A: Cost Savings Initiatives Summary Formalize training of Field Service Validatedr?Complete TBD Engineers Tire Leak Check Requirements ValidatedfCompiete TBD (Government Furnished Information) Automatic PHM Data Transfer from ImplementedNalidation In- TBD SOU to ALOU Work PAIR Assignment to Sub-lndentured ValidatedfComplete TBD Components Assessment of Components with ValidatedfComplete TBD EEL Requirements CR Reterences in ValidatedfComplete TBD lle Plan Review - LAU-147 Launcher Implementation In-Work TBD Rubber Pads Mil?1394 Bus Interface Chip Funding/?Approval In?Work TBD Improvement Replace Sealant With Polyurethane Solution ln-Work TBD Impregnated Wire Mesh Gasket (Top 20 Driver #06) General Systems Solution ln-Work TBD Descriptions STOVL Cooling - External Air VaiidatedfCompIete TBD ALIS-SAP Integration Gaps - In-Work TBD Upgradinngowngrading Demand Priority ALIS-SAP Integration Gaps - Solution ln-Work TBD Interface ALIS-SAP Integration Gaps - Solution ln-Work TBD Attaching Replenishments to Existing Demand ALIS-SAP Integration Gaps - Back Solution ln-Work TBD Shop Repair Visibility ALIS-SAP Integration Gaps - Data Implementedealidation In- TBD Availability in EDW Work ALISASAP Integration Gaps IT Solution In?Work TBD Dependencies (ALIS, IFS, CMMS, SAP, ATLAS) Latch PAIR Extension ValldatedfCompiete TBD Job Performance Aids PA) ImplementedNalidation In- TBD Work Integration Gaps Supply Solution In?Work TBD Transactions with UNK Serial Numbers ALIS-SAP Integration Gaps - Vendor Solution ln-Work TBD PM vs JSF Spec Integration Gaps JTD Solution ln?Wcrk TBD and Provisioning Data Alignment (SDD) Integration Gaps ALIS Solution ln?Wcrk TBD Message Delivery Guarantee ALIS-SAP Integration Gaps - Solution ln-Work TBD Page 53 of 57 APPENDIX A: Cost Savings Initiatives Summary Shipping, Labeling and Packaging Gaps - Part Marking Discrepancies Integration Gaps Part Solution In?Work TBD Number Translation PO Receipt EPS Converter Regulator LCN ValidatedfComplete TBD Mapping - Engineering STOVL ULF Door Actuator Without Implemented/Validation In? TBD Removing Lift Fan - Removei?lnstall Work Upgrade of LRIP 2i?3 F-BSB Aircraft to Implementation ln-Work TBD Fuel Boost Pump or Equivalent Extension of Lift Fan Oil Sample ValidatediComplete TBD Limits Past 10 EOT COMSEC Material Shipping Delay ValidatediComplete TBD Time PHM Data for FSEs VaiidatedfComplete TBD Pylon Panel Discrepancies Solution In-Work TBD Stick and Throttle Covers Delivered In-Work TBD as Red Gear TMS Issue - Dangerous Goods Solution ln-Work TBD TMS Issue - 24!? Delivery Implementation In-Work TBD Integration Gaps Solution In?Work TBD integration of Alternate Part and Suitable Subs to fill ALIS CMMS Demands Lovver Upper LEF Inboard Blade Implementation ln-Work TBD Seal Trim Improve MLG Gear-Up Target ValidatedfComplete TBD Bracket To Eliminate Improper Installations Gun Vent Bracket ValidatedfComplete TBD Channel Unique VS Messages And In-Work TBD The PMA Post Bird Strike Conditional Engine ValidatedfComplete TBD Inspection - Author JTD Aircraft Transfer SOU to SOU ImplementedtValidation In? TBD Work F-35A Fuel Tank Overpressure Implementation ln-Work TBD ALIS Admin Training (LM?Contractor) ValidatedfComplete TBD Temporary Field Mod IPP Fail - T94 ValidatediComplete TBD Sensor Depin Rudder Freeplay EHA Validated/Complete TBD Supportability.r Improved Gap filler and field level Implementation In-Work TBD repairs for air data probe Root Rib Modification Span Time ValidatedfComplete TBD Improvement APPENDIX A: Cost Savings Initiatives Summary CR Lead Time vs Actual Lead Time - Validatedi?Complete TBD Depot Induction Delays (Top 20 Driver #13) OBOGS Failures Implementation In?Work TBD Wheel Improvements ValidatediCompIete TBD WBD Functional Check Validatedi?Complete TBD Improvements US AF CTOL MFR TIME CYCLE Validatedi?Complete TBD REDUCTION (SOFTWARE) CM of ADL Files Implementation In?Work TBD Exceedance Management System Implementation ln-Work TBD Improvements (Part II) (Top 20 Driver Vertical Tail Bulb In?Work TBD Seal Failures Hydraulic Tubing Repairs ImplementedNalidation In- TBD Work RAID Configuration Upgrade Solution In-Work TBD Use of E-Drill for Removing Implementation ln-Work TBD Permanent Fasteners for Depot TeardowniDisassembly of F-35 Provide the operations test team with Validated/Complete TBD a speed and torque limited pnematio wrench to manually openiclose weapons bay doors Partial Engine Roll Back Implementation In-Work TBD Maintenance Structural Analysis PHM Configuration Checks In?Work TBD Tactical Navigation System Inertial FundingiApproval In-Work TBD Electronic Unit - Software Rehost EDU Connector Fastener Material In?Work TBD Change Aircraft Holdback Fitting Assy (AHFA) Solution ln-Work TBD Life Improvement Suggestion AAI Door Lock Proximity Switch Tool Solution In-Work TBD Full PAIRIHRC Definition in EEL Solution ln-Work TBD 2770)! BCCU Fill?in Power Firmware ValidatediCompIete TBD Update Multiple Serial Numbers on Implementation In-Work TBD Components (Top 20 Driver #11) Advanced Filter Implementation In-Work TBD and Correlation (AFC) Tool; Unnecessary HRC Work Orders Redesign 2WTV00301-0001 Delta Solution ln-Work TBD Pressure Sensor (DP301) to Improve Reliability Part II Weapons AME Bomb Rack Adapters, Solution ln-Work TBD Welded Clamp Assemblies Breaking. Turbomachine Fuel Control PN Solution ln-Work TBD ZCTVOOBM Delta Pressure Sensor Improvement Page 55 of 57 APPENDIX A: Cost Savings Initiatives Summary Turbomachine Ingition System Fault ValidatedfComplete TBD Isolation Improvement Field Procedures! ImplementedNalidation In? TBD Calibration Guidelines Work Establish Damage Solution ln-Work TBD AIIowancesiRepairsiMx Plan for Turbomachine Internal Components Field PAD Adapter Hose and Bleed Implementation ln?Work TBD Kit WI PPS Troubleshooting Implementation in-Work TBD Guide CTOL Trestle Bushing Seizing Solution ln-Work TBD AMS 33?4 Core Time Solution In-Work TBD Field Fiber Torque Tooling Implementation In?Work TBD Flying with Missing Fasteners Implementation In-Work TBD Rudder EHA Alternate Procedures Solution ln-Work TBD Alternate Air Retuel Probe Nozzle Solution ln-Work TBD LG Retract Actuator Hose Solution In?Work TBD Replacement Nutplate and fastener ?llet sealing Implementation ln-Work TBD tool implementation SUU-BS Hardpoint Cover Solution ln-Work TBD Simplification Mx Plan Review - V38 Cockpit Warm Solution ln-Work TBD Air Valve Removal and Installation Without Removing Lift Fan Regression Checks - Phase II Solution ln-Work TBD Interior Canopy Scratcheszbrasions Solution ln-Work TBD (Top 20 Driver New Latch PAIR Implementation In-Work TBD Improvements (21 2108) AIDU Cover During Maintenance Solution In-Work TBD Substitute Fastener Needed for Implementation ln-Work TBD Transparency Removal System Replace connectors with Solution ln-Work TBD 55 Split Backshell MLG Hubcap Safety Cable Sleeving ValidatedfComplete TBD Thrust Pin and Thrust Pin Clamp Implementation ln-Work TBD Improvement - Damage Criteria Removal of Door 4124 Support Tool Solution ln-Work TBD FLSC Procedure Improvements - Solution ln-Work TBD Part Active Side Stick Control AssyfActive Solution In-Work TBD Throttle Quadrant Assy Switch Cover Redesign Mx Plan Review - IRCM Implementation In-Work TBD MagazineiDispenser Repairs Pylon Insert Seizing Solution In?Work TBD Depot and Production Alternative LO Solution ln?Work TBD Page 56 of 57 APPENDIX A: Cost Savings Initiatives Summary Verification Plan Lower HT Bullnose Coatings a Solution ln-Work TBD Engagement Engine Skate Roller Improvement - Solution ln-Work TBD Damage Criteria Migrate to Portable Solid State Solution ln-Work TBD Storage Hard Disk Storage OBOGS Controller Instability Fix TriagefPrioritization ln-Work TBD BOS Charging Port Redesign Solution ln?Work TBD F30 Lift Fan Anti-Sphon Valve Solution ln-Work TBD Deletions Combine Cleaner and Promoter in Solution ln?Work TBD Single Application Installation Crush Seal - Solution ln-Work TBD lnspectionfDamage Criteria Seat Saver Disconnect (QDC Saver) Solution ln-Work TBD Limited Access Nutplate Removal Solution ln-Work TBD and Replacement FOM During TCTD Accomplishment Solution ln-Work TBD Ordering New Parts Before TCTD Solution ln-Work TBD Accomplishment HT Blade Seal Crackaelamination Solution ln-Work TBD TCTD Revisions Solution ln-Work TBD Fuel Contamination Part II Solution ln?Work TBD OMS-Keying Deep Dive Solution ln-Work TBD Page 57 of 57