A Diminishing Manufacturing Sources and Material Shortages (DMSMS) issue is the loss, or impending loss, of manufacturers or suppliers of items, raw materials, or software. The Department of Defense (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. While traditionally thought of as applying to electronic items, it is important to be cognizant that a DMSMS issue can arise regarding any item within a system, including software and non-electronic components- materials and structural, mechanical, and electrical (MaSME) items.

DMSMS issues can be caused by many factors- such as low-volume market demand, new or evolving science or technology, changes to detection limits, toxicity values, and regulations related to chemicals and materials- that significantly affect the DoD supply chain and industrial base. Another aspect of DMSMS is when an item, although still available commercially, no longer functions as intended because of hardware-electronic and MaSME items, software, and/or requirements changes to the system. This is often referred to as functional obsolescence. Any of these situations may endanger an ongoing production capability and/or the life-cycle support of a weapon system or any training, support, or test equipment already in the field. Ultimately, DMSMS issues affect materiel readiness and operational availability, which, in turn, affect both combat operations and safety.

No system or program is immune from DMSMS issues; they are inevitable. They affect short- and long-lived systems; repairables and consumables; space-based, air-based, ground-based, and sea-based equipment (including support and test equipment); and so on. DMSMS issues are not confined to piece parts or devices; obsolescence may occur at the part, module, component, equipment, or system level. DMSMS issues are also not limited to defense-unique items; commercial off-the-shelf (COTS) items represent a significant obsolescence problem, because such items are most susceptible to market forces.

Consequently, robust DMSMS management is needed. 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. DMSMS management has been most closely associated with electronics. However, DMSMS management also should be concerned with materials, mechanical items, and software. This standardization document, which replaces the February 2015 version of SD-22, is intended primarily for the DMSMS practitioner community. It is a guidebook of best practices for implementing an effective DMSMS management program throughout the system life cycle. Because DMSMS considerations affect how a system is designed and sustained, program managers (PMs), engineers, and life-cycle logisticians (including supply chain managers, inventory managers, and maintainers) are also affected. Consequently, as beneficiaries of DMSMS management best practices, these communities and their associated policymakers are also part of the intended audience.

The purpose of this document is fivefold:

• Create awareness of the extent and impact of DMSMS issues on DoD systems.
• Define a robust DMSMS management process that a PM can use to build an effective DMSMS management program.
• Define DMSMS support metrics to measure the effectiveness of a robust DMSMS management program.
• Promote affordable and efficient program support through rapid and cost-effective DMSMS management best practices and resolutions that take into account equipment life cycles, technology changes, and planned obsolescence.
• Promote the exercise of DMSMS management best practices throughout the acquisition life cycle.