Defence Magazine

Our top level goal at Defence Materiel Organisation (DMO) is to deliver projects and sustainment on time, on budget and to the required quality, capability and safety. To do this we need to make DMO more businesslike, accountable and outcome driven. With 6500 staff and a budget of $6.5 billion year on year and growing under the Defence Capability Plan by 15 per cent, DMO is already arguably the largest program management organisation in Australia. Our aim is to be the best.

To achieve this we must ensure that both Defence and Australian defence industry are able to keep pace with developing technologies. This is possibly the greatest concern for the DMO over the next ten years. Delivering and maintaining major defence equipment requires a range of skills and qualifications. It is estimated that around 3,000 to 5,000 additional engineers, specialist technicians, key tradespeople and project managers will be required by defence industry over the next decade to provide the skills necessary to build and maintain Australia's major defence platforms. Defence and defence industry has an interest in, and responsibility for, developing these skills.

We are doing our bit with the $20 million per year Skilling Australia's Defence Industry (SADI) program which will partly fund additional skills development and extra places for engineers, technicians, tradesmen, and project managers. It is not a subsidy or replacement of the development programs run by individual companies. We expect companies to expand their training as well, including spending some of their own money on apprentices, cadets, and training coordinators. In other words, we are seeking a partnership with the defence industry.

In return for a profitable defence industry sector the Government expects an efficient and effective industry that is able to deliver value-for-money capability to the ADF on time, on budget and to the required quality. A defence industry that has invested in growing its skilled workforce demonstrates a real commitment to future industrial capability. Project risks will be further reduced and Australian defence industry will continue to be globally competitive.

The SADI initiative shares the responsibility for skills growth and development between industry and government and represents a 'win-win' solution for both the defence of Australia and Australian industry.

The Industry Division in DMO has also been working on another initiative - to invigorate the Defence and Industry Study Course (DISC) - a unique development program run by the Defence Materiel Organisation for future leaders from Defence, industry and other Government agencies. Previously known as the Industrial Mobilisation Course, the DISC has a history spanning 50 years. Through a series of seminars and visits to ADF facilities and industry, the course is aimed at enhancing mutual understanding between Defence and the business community. Courses will be conducted nationally in three one-week modules, one in Canberra and the remainder interstate. The first 'new' Defence and Industry Study Course was oversubscribed, clearly demonstrating the demand and the invaluable opportunities that this course provides. Participants came together for the first time at the 2005 Defence + Industry Conference.

The 13th annual Defence + Industry Conference, the premier Defence and industry engagement activity of the year, brought some 1500 delegates together at the National Convention Centre in June. Formerly the Defence Procurement Conference, the D+I Conference offers an excellent opportunity for business to obtain information about the Government's plans for Defence, and particularly its procurement priorities for the coming year.

This year's conference theme, 'Getting Down to Business', reflected our new beginning as the DMO becomes a prescribed agency. The conference focused on what Defence and Industry need to do to deliver the capability outcomes required by Government. As in the past, a series of regional briefings for industry will be conducted in each State capital during the third quarter of the year. These briefings provide information from the D + I Conference tailored to the needs of small and medium regional companies and also provide those businesses with access to more extensive information about regional business opportunities.

For the DMO to better understand defence industry, a top priority for 2005 is to develop benchmarks of industry performance. As part of the analysis, Australian companies have been compared against their counterparts in the non-defence area of the Australian economy as well as leading defence suppliers based overseas. Overall, Australian defence industry scores highly for profit which means that the DMO can reasonably expect companies to produce quality outcomes on time and on schedule.

There have been a number of recent examples of the type of cooperative Defence and Industry relationships that can be built when we turn our minds to it. The short-notice deployment of 10 new Bushmaster vehicles to southern Iraq with the Al Muthanna Task Group in May this year is a demonstration of the very good working relationship between Industry and Defence. This relationship is based on a principled approach with open communication on all issues, responsiveness to Defence's needs, and a willingness from both parties 'to get the job done.' Without this relationship, ADF personnel on operations in southern Iraq would not have the additional transport protection offered by the state-of-the-art Bushmaster vehicle.

In addition to the Bushmasters, the Al Muthanna Task Group deployed with 40 Australian Light Armoured Vehicles (ASLAVs). Defence decided that these vehicles were to have the same enhancements provided to ASLAVs already deployed in Baghdad - including the installation of spall protection, the bar armour system and a remote weapon station.

General Dynamics Land Systems- Australia (GDLS) managed the spall installation from their maintenance facility in Adelaide and subcontracted the fabrication of the bar armour system to four local engineering workshops. Armatec Australasia provided the spall kits and labour for actual installation, and the GDLS workforce was supplemented with six Army tradesmen and 44 Tenix staff from Bandiana. Kongsberg, the manufacturer of the remote weapon station, provided a fast track delivery of the weapon stations from Norway. The Defence Materiel Organisation closely managed all this work to ensure it met the requirements and the tight time schedule.

This combined effort was a unique and significant event, highlighting the collective determination of Australian industry to support the deployment of Australian soldiers to Iraq.

Another success story for Defence and Industry was the arrival - in May - of the first of the Armidale Class Patrol Boats in its homeport of Darwin for hand over to Defence.

Delivering this capability within 17 months of signing the contract was no simple task. It demonstrates the ability of Australian industry to design and construct, and of DMO to manage delivery, of this important class of ships for the Navy on time, on budget and to the required quality, capability and safety.

For more information on the Defence and Industry Study Course (DISC) contact Mrs Cate Caldwell.
Ph 02 6266 0247
www.defence.gov.au/dmo

Q & A with Head of Industry Division Peter Croser

The DMO Industry Division is changing and the driving force behind the raft of new initiatives to strengthen Australia's defence industry is Industry Division Head, Peter Croser.

The DMO Industry Division's main goal is to provide the best available assessment of international and Australian industry capabilities and performance to its clients - the Government, the ADF, the CEO DMO, DMO systems divisions project staff and the Capability Development Group.

Q: Where did you start your career?

I studied a Bachelor of Technology in Mechanical Engineering at the South Australian Institute of Technology - during my final year I entered the Navy as a direct entry undergraduate as an Engineering Officer. I served eight years and left in 1982 to work in the automation industry.

Q: What is the most important quality a leader should possess?

Vision to drive change combined with the ability to build a strong team atmosphere, but in the end, the ability to lead.

Q: You have often been described by your contemporaries as a leader who "leads from the front". What do they mean by this?

Well, it's a little tough to lead from behind! However, I think they are referring to my belief in leading by example. I wouldn't ask anyone in my team to do something I wouldn't do myself. When I occasionally hear from staff "it can't be done" I volunteer to do it for them... and I mean it. I have a philosophy of continual change and improvement to prevent the need for input to instigate change when it is probably too late.

Q: DMO is undertaking a change program to become more business-like - why is the DMO Industry division crucial to the success of this program?

Through linkage with government and industry and from my own experience in business, we are able to identify good business practice and procedures and adopt a business-like approach in the DMO.

Q: You are the President of Engineers Australia Canberra Division and recently spoke about tapping into the engineering skills of youth. What did you mean by that?

In my experience I've found young engineers are able to adapt very quickly and respond well to the industry's demand for innovation. Australia has a lot to gain if this talent is nurtured and utilised. I also said the senior managers and engineers need to mentor young engineers to fast-track their skills development in industry.

Q: If you could change one thing about Australia's defence industry, what would it be?

It is not fully achievable, but I would like to protect the niche capabilities of our innovative small to medium enterprises (SMEs) so they can gain access to markets globally, without putting their business at risk. The reality is SMEs who have invested in IP, capability and export markets will be at risk due to contract timings and the cost to stay with an export drive long enough to achieve the results.

Additionally, I would ensure SMEs are long-sighted and plan for the future and actively work with prime contractors. The difficulty for SMEs is how to survive and grow a young business while meeting the peaks and troughs of business cycles. SMEs provide Australia's defence industry with the majority of research and development, so it is vital for them to flourish.

Defence

Defence Materiel Organisation