This podcast features commentary from Michael Galluzzi, NASA inventor of PrimeSupplier, and Pasquale Ferrari, a technology transfer agent in NASA Kennedy Space Center's Innovative Partnerships Program Office, who discuss PrimeSupplier, a new supply chain analysis tool that forecasts economic influences on supplier viability and which is available for licensing from NASA's Kennedy Space Center. In the podcast, Galluzzi and Ferrari explain why it is important for companies to proactively manage their supplier bases and how the software helped manage the Shuttle Transition Program. They also discuss the background of PrimeSupplier and provide an overview of the licensing process for software companies interested in licensing this intellectual property.
Transcript
JENNIFER FAIR In the current economic environment, it is crucial to proactively manage your supplier base to make sure no gaps in program needs are going to occur as a result of these instabilities. PrimeSupplier, a new software program developed by NASA Kennedy Space Center, is a supply chain analysis tool that forecasts economic influences on product and supplier viability. By bringing together both financial and programmatic data, PrimeSupplier analyzes which suppliers are most, or least, likely to fail based on the data available and comparisons to industry benchmarks, allowing manufacturing organizations to minimize their own risk by proactively managing risk throughout their supplier base. Initially developed for NASA Shuttle Program transition activities, PrimeSupplier has been used by NASA to view early indicators of supplier and product line stability.
I am joined today by NASA inventor, Michael Galluzzi, and Pasquale Ferrari, from Kennedy's Innovative Partnerships Program Office, to discuss this new software program. Welcome Mike and Pasquale, thanks for joining us today.
FAIR Mike, tell us a little bit about PrimeSupplier and where the idea for the software came from.
MIKE GALLUZZI I realized the need for such an application as the result of two NASA simulation and modeling projects that I was a member of. One being the earth to orbit supply chain modeling and the other being an MIT-led project which we called an interplanetary supply chain simulation, which resulted in a tool called "Spacenet," which I guess is now commercially available. Now these tools in short simulated end to end sortie missions to the moon. But as we ran the simulation, it became evident to me that without a healthy industrial base to provide product on demand these tools really were essentially worthless. So I then proceeded to create the PrimeSupplier economic stability indicator model as a program-wide modeling tool to help me evaluate various programmatic and financial stability benchmarks as the shuttle program reached various stages of product lifecycles and as a result of retiring the shuttle program.
FAIR Given the current state of the economy, why is it so important that companies proactively manage their supplier base?
PASQUALE FERRARI In the current state, many companies are trying to conserve cash but you're also seeing a lot of, especially in the pharmaceutical industry, with mergers and acquisitions and right now I think would be a prime time to get on board with a new product tool, to invest in a new technology like PrimeSupplier so that when the economy picks up again, you have a tool. And as far as if it was an exclusive license, one company would have a tool ready to go that perhaps would be of value to the rest of the industry and would be in a prime position to get ahead in that new marketplace that could be developed.
GALLUZZI From the agency's perspective, in trying to fit our mission goals within limited budgets, Congress is asking questions. For example, should we extend the space shuttle to minimize the gap between programs? Aerospace safety advisory panel, this is the 2008 annual report, it stated with regard to extending the shuttle program, the number one critical issue on extension of the space shuttle program was relating to the supply base. By using PrimeSupplier, I believe it is possible to understand where these faults may be and therefore influence procurement decisions on when to place a purchase order in order to keep these critical suppliers liquid, solvent and, of course, their product lines viable. You have to understand that, and this applies not only just to NASA but to other programs out there, for example the Department of Defense and even commercial to some degree, this all relates and it applies: no one project element within an enterprise can be responsible for maintaining the industrial base for the entire program or corporation. Same applies. No one program can be responsible for maintaining the industrial base for the entire agency in our case. And of course no one agency can be responsible for maintaining the industrial base for the entire country. Without the ability to understand these multifunctional influences that affect the supply chain we as managers will find it increasing difficult to work as an informed collaborator with suppliers and contractors in development and sustainment of new system requirements.
FAIR Can you give us an example of how PrimeSupplier has helped in managing the Shuttle transition program?
GALLUZZI We were able to identify a procurement gap with two critical single source suppliers which were shared between both the shuttle and constellation programs. Now this PO gap would have left these suppliers vulnerable to extremely low profit margins until the next PO was placed. So we were able to identify this gap and notify the appropriate project executive who then took the necessary action to resolve that particular, or these particular, PO gaps.
FAIR Pasquale, I understand that NASA is currently looking for organizations to license and commercialize this software. What types of organizations should consider licensing this software?
FERRARI Organizations that should consider licensing PrimeSupplier could be anyone from those engaged to the development and sales of enterprise business software and solutions to even the same consulting firms who use us as a project tool. The final product that could be developed for industry could be a software suite sold as a typical software license or something like a software as a service application where customers purchase feeds rather than a stand along application. While NASA typically prefers to license to smaller businesses, this type of software will likely require further development in order to make a commercial version. Any company that licenses the rights to this patent pending software must provide evidence that they have a viable business model and will be capable of successfully commercializing the technology. The type of things this can handle could be larger type products like a Boeing or an airbus you know large industry manufacturers or even I know Toyota has mentioned they have supply chain issues currently now with the economy going on.
FAIR Can you give us an overview of the licensing process?
FERRARI The NASA licensing process - once a company is aware of NASA patent technology they can sign a NASA nondisclosure agreement to learn more of the details behind the technology. They discuss this many times with the inventor. After many discussions if the company believes that this patent or this product or software technology is something that could benefit their product line, they can fill out a license application with NASA and return it to the respective NASA center licensing manager along with the commercialization plan for that patent. Once the license application has been filed here the license terms can be negotiated. Patent licensing terms typically carry an upfront fee, an annual minimum payment and a running royalty. These terms are dependent on factors such as the type of patent technology, the industry the company will serve and projected sales figures. Licenses can also be exclusive, partially exclusive or non-exclusive meaning you can be the sole licensee of a technology, you can be partially excluded to certain fields of use or non-exclusive where anyone can come to NASA for a license and the royalty rates of these different licenses will be adjusted accordingly based on the terms of those licenses. Once the terms have been negotiated and the license agreement has been signed the licensing party will then have the legal right to practice the claims of the patent.
FAIR Thank you both again for joining us today. For more information on PrimeSupplier, please visit http://www.fuentek.com/technologies/Primesupplier.htm or contact Karen Hiser at (919) 622-9995.
SOURCE: Fuentek
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