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1. The Competition for Manufacturing Supremacy
Pages 4-8

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From page 4...
... As a result, obsolete manufacturing processes are being used to build ever more sophisticated weapon systems, leading to sharply rising costs of weapon systems, shrinking numbers of units affordable to DOD, and unreliable performance of those that are acquired. More serious has been the declining competitive strength of the defense industrial base.
From page 5...
... The defense industrial base lacks incentives for such investment under current procurement procedures, and many federal policymakers concerned with defense do not recognize the need to invest in advanced manufacturing technology. Without adequate manufacturing processes, even skilled and motivated workers and managers can neither turn out high-quality products nor meet demanding schedules.
From page 6...
... The report also recommended that DOD directly fund manufacturing technology development, via the ManTech program, in areas that: · can solve generic problems, · require long lead times, · have the potential for substantial improvements in the manufacturing system, ant · are beyond the normal risk of business. The committee concluded, however, that significant changes were needed to improve the effectiveness of the ManTech program.
From page 7...
... A much more comprehensive DOD manufacturing policy is required to accomplish not only longer-range advances in manufacturing technology but also widespread application of leading-edge technology and improvement of existing production facilities. The new ManTech program can provide only the first part of such a policy: to develop new manufacturing capability.
From page 8...
... The disincentive of renegotiating contracts to reduce profits that result from increased efficiency, however, still applies to most contracts. Further, the continuing separation of design from production contracts severely limits opportunities to design products that take advantage of advanced manufacturing technology.


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