A precision guidance kit that transforms a 155mm artillery round into a near-precision projectile has completed its first Production Lot Acceptance Test.

The U.S. Army said the successful completion of the test is a milestone achievement as the advanced fuze moves toward full-rate production.

"Team Picatinny and our industry partners at Orbital ATK worked through some difficult technical challenges that impacted the program over the past year or so," said Program Executive Officer Ammunition at Picatinny Arsenal Jim Shields.

"These results confirm the effectiveness of the disciplined root cause analysis and corrective actions developed by engineers, which have now been implemented in the latest design configuration. It's a great example of what can be accomplished by a high-performing team."

The Precision Guidance Kit is placed into the fuze well of conventional 155mm M549A1 and M795 artillery projectiles. GPS signals adjust the shell's trajectory during its flight to ensure the round's impact at the programmed location.

Once on target, PGK will function in one of the two selected modes -- point detonating or proximity.

U.S. troops began receiving the PGK in 2013 as as part of an Urgent Materiel Release.

In its recent first Production Lot Acceptance Test a total of 42 PGK-equipped artillery rounds were fired at a test range in Arizona from the M109A6 Paladin self-propelled Howitzer. Forty-one out of 42 units performed reliably.

Additional tests are scheduled for this month and next, the Army arsenal said, with a decision on full-rate production expected at the end of the year.

"The PGK program is a top priority program within PEO Ammunition, and this Lot Acceptance Test success marks a significant accomplishment for the program," Shields said.

Orbital Alliant Techsystems is the prime contractor for the system.