Because Department of Defense (DoD) system life cycles are longer than technology life cycles, Diminishing Manufacturing Sources and Material Shortages (DMSMS) issues are inevitable. DoD cannot afford to be reactive in this area—reactivity may lead to a combination of schedule delays, readiness degradations, and higher cost.
Leadership attention must be brought to bear on this problem and adequate resources must be provided to minimize its impact. The return on investment from these resources can be substantial because resources devoted to proactivity lengthen the window of opportunity to take corrective action. There will be a larger number of low-cost options available when the window to address the issue is longer. Therefore, cost-effectiveness improves.
This May 2022 edition of the SD-22 "Diminishing Manufacturing Sources and Material Shortages: A Guidebook of Best Practices for Implementing a Robust DMSMS Management Program" supports DoDI DoDI 4245.15 DMSMS
policy. It also provides best practices for implementing an effective Diminishing Manufacturing Sources and Material Shortages (DMSMS) management program throughout the entire life cycle of a system.
A DMSMS issue is the loss, or impending loss, of manufacturers or suppliers of items, raw materials, or software. DMSMS management is a multidisciplinary process to identify issues resulting from obsolescence, loss of manufacturing sources, or material shortages; to assess the potential for negative impacts on schedule and/or readiness; to analyze potential mitigation strategies; and then to implement the most cost-effective strategy. All systems are susceptible to DMSMS issues. The DoD loses a manufacturer or supplier when that manufacturer or supplier discontinues production and/or support of needed items, raw materials, or software or when the supply of raw material is no longer available. DMSMS issues affect materiel readiness and operational availability, which, in turn, affect both combat operations and safety. A robust risk-based DMSMS management program, using practices outlined in this guidebook, can minimize the negative impacts of DMSMS on program costs, schedule, and system performance—and ultimately warfighter readiness and lethality. This guidebook supports DMSMS practitioners, as well as program managers, systems engineers, life-cycle logisticians, and other product support professionals. It is updated regularly.
This May 2022 version reflects several signifcant changes from the earlier 2021 version: First, the DMSMS resolution types were revised to reflect specific situations more accurately. The resolution formerly called "development of a new item or source" is split into three categories (development of a new source, design refreshment, and redevelop the item). The corresponding resolution descriptions and average costs have been modified accordingly. Additionally, new best practices were added on interfaces among the people involved in DMSMS management, product (improvement and supportability) roadmaps, technology roadmaps, and programming and budgeting for modifications reflected by technology refreshment and technology insertion to the system. A new Appendix on roadmaps was also developed. The new material describes how the DMSMS community should use roadmaps to formulate resolutions to issues and improve forecasts of future issues. The DMSMS community's monitoring for current and near-term obsolescence issues are the most important contributor to supportability roadmaps. Furthermore, synergies exist between programming and budgeting for DMSMS issues and technology refreshment and insertion. Taking advantage of these synergies will improve cost effectiveness for the entire program office.