Military Airframe Acquisition Costs

Military Airframe Acquisition Costs PDF Author: Cynthia R. Cook
Publisher: Minnesota Historical Society
ISBN: 9780833030238
Category : Business & Economics
Languages : en
Pages : 182

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Book Description
During the past couple of decades, many segments of U.S. industry have benefited from introducing new manufacturing techniques that save money by increasing efficiency and reducing overhead. Would U.S. military aircraft manufacturing benefit from these techniques as well? This report examines the package of new tools and techniques known as lean production to see if it would enable aircraft manufacturers to produce new weapon systems at costs below those predicted by historical cost estimating models. The authors give a broad overview of what lean is and what it can and cannot accomplish in cutting manufacturing costs. They also detail results of industry efforts in this regard, including specific examples and averages of claimed cost savings. The authors conclude by identifying areas where companies need to push harder in lean implementation and what the Defense Department can do to encourage this.

Military Airframe Acquisition Costs

Military Airframe Acquisition Costs PDF Author: Cynthia R. Cook
Publisher: Minnesota Historical Society
ISBN: 9780833030238
Category : Business & Economics
Languages : en
Pages : 182

Get Book Here

Book Description
During the past couple of decades, many segments of U.S. industry have benefited from introducing new manufacturing techniques that save money by increasing efficiency and reducing overhead. Would U.S. military aircraft manufacturing benefit from these techniques as well? This report examines the package of new tools and techniques known as lean production to see if it would enable aircraft manufacturers to produce new weapon systems at costs below those predicted by historical cost estimating models. The authors give a broad overview of what lean is and what it can and cannot accomplish in cutting manufacturing costs. They also detail results of industry efforts in this regard, including specific examples and averages of claimed cost savings. The authors conclude by identifying areas where companies need to push harder in lean implementation and what the Defense Department can do to encourage this.

Military Airframe Acquisition Costs. The Effects of Lean Manufacturing

Military Airframe Acquisition Costs. The Effects of Lean Manufacturing PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This report is part of a project responding to a call by the U.S. Air Force to update cost estimating methodologies for new weapons systems-in particular, fighter aircraft. The Air Force was concerned that Cost Estimating Relationships (CERs) based on older aircraft did not adequately reflect the acquisition and manufacturing environment within which a new fighter, such as the Joint Strike Fighter (JSF) would be produced. This report is one of a series, all of which address some aspect of how to incorporate the new DoD acquisition and manufacturing environments into historical cost estimating relationships or methodologies (See Younossi, Graser, and Kennedy, 2001; Lorell and Graser, 2001). Using the CER methodology for example, the cost of a future aircraft is estimated as a function of its physical or characteristics or other program variables, using a series of equations wherein the performance and program variables are inputs, and cost or labor hours are the outputs. To create these equations, actual costs (or labor hours) to produce previous aircraft are collected and used as the dependent variables in statistical regression analysis. Explanatory variables typically include such factors as cumulative production quantity, annual production rate, such aircraft characteristics as weight and speed, and others. The resulting equations are referred to as "cost estimating relationships," or CERs. Obviously, the ability of these equations to forecast future systems costs hinges on how well past performance is a predictor of the future.

Historical Cost Growth of Completed Weapon System Programs

Historical Cost Growth of Completed Weapon System Programs PDF Author: Mark V. Arena
Publisher: Rand Corporation
ISBN: 0833039253
Category : History
Languages : en
Pages : 74

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Book Description
This report is one of a series from a RAND Project AIR FORCE project, "The Cost of Future Military Aircraft: Historical Cost Estimating Relationships and Cost Reduction Initiatives." The purpose of the project is to improve the tools used to estimate the costs of future weapon systems. It focuses on how recent technical, management, and government policy changes affect cost. This report focuses on the accuracy of cost estimates. For our analysis, we used a very specific sample of Selected Acquisition Report (SAR) data, namely only programs that are complete or are nearly so. The analysis indicates a systematic bias toward underestimating the costs and substantial uncertainty in estimating the final cost of a weapon system. In contrast to the previous literature, the cost growth was higher than previously observed. We also found few correlations with cost growth, but observed that programs with longer duration had greater cost growth and electronics programs tended to have lower cost growth. Although there were some differences in the mean cost growth factors among the military departments, the differences were not statistically significant. While newer programs appear to have lower cost growth, this trend appears to be due to factors other than acquisition policies.

Sources of Weapon System Cost Growth

Sources of Weapon System Cost Growth PDF Author: Joseph G. Bolten
Publisher: Rand Corporation
ISBN: 0833045245
Category : Technology & Engineering
Languages : en
Pages : 117

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Book Description
This analysis uses data from Selected Acquisition Reports to determine the causes of cost growth in 35 mature major defense acquisition programs. Four major sources of growth are identified: (1) errors in estimation and scheduling, (2) decisions by the government, (3) financial matters, and (4) miscellaneous. The analysis shows that more than two-thirds of cost growth (measured as simple averages) is caused by decisions, most of which involve quantity changes, requirements growth, and schedule changes.

Is Weapon System Cost Growth Increasing?

Is Weapon System Cost Growth Increasing? PDF Author: Obaid Younossi
Publisher: Rand Corporation
ISBN: 0833041355
Category : Business & Economics
Languages : en
Pages : 142

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Book Description
In recent decades, there have been numerous attempts to rein in the cost growth of U.S. Department of Defense (DoD) acquisition programs. Cost growth is the ratio of the cost estimate reported in a program's final Selected Acquisition Report (SAR) and the cost-estimate baseline reported in a prior SAR issued at a particular milestone. Drawing on prior RAND research, new analyses of completed and ongoing weapon system programs, and data drawn from SARs, this study addresses the following questions: What is the cost growth of DoD weapon systems? What has been the trend of cost growth over the past three decades? To address the magnitude of cost growth, it examines cost growth in completed programs; to evaluate the cost growth trend over time, it provides additional analysis of a selection of ongoing programs. This sample of ongoing programs permits a look at growth trends in the more recent past. Changes in the mix of system types over time and dollar-weighted analysis were also considered because earlier studies have suggested that cost growth varies by program type and the cost of the program. The findings suggest that development cost growth over the past three decades has remained high and without any significant improvement.

Coordinating Requirements, Budgets, and Acquisition

Coordinating Requirements, Budgets, and Acquisition PDF Author: United States. Congress. House. Committee on Armed Services. Panel on Defense Acquisition Reform
Publisher:
ISBN:
Category : United States
Languages : en
Pages : 238

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Book Description


Systems Engineering and Program Management

Systems Engineering and Program Management PDF Author: David E. Stem
Publisher: Rand Corporation
ISBN: 0833038729
Category : Political Science
Languages : en
Pages : 211

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Book Description
Systems engineering and program management (SE/PM) constitute a large portion of the acquisition cost of military aircraft and guided weapons systems. The goal of this study was the development of a set of cost-estimating relationships that can be used to estimate the SE/PM cost element for development and production of aircraft and weapons programs. The authors canvassed government and industry personnel to learn about current techniques for estimating SE/PM costs, and they collected historical data from several aircraft and weapons programs to investigate trends in SE/PM costs over time and to generate methods that cost analysts can use early in the life cycle of a program when little cost information is available. The authors also investigated the effects on SE/PM costs from acquisition reform, including the reduction in the number of military specifications and standards, the use of integrated product and process teams, and the trend toward "evolutionary acquisition." This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity. Book jacket.

Evolutionary Acquisition

Evolutionary Acquisition PDF Author: Mark A. Lorell
Publisher: Rand Corporation
ISBN: 0833038826
Category : History
Languages : en
Pages : 162

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Book Description
"So far, EA implementation of military space programs has produced mixed results. The capabilities and requirements definition and management processes are major challenges in all EA programs. EA programs require an evolutionary costing approach; most cost analysts interviewed expressed generally positive views about EA."--BOOK JACKET.

Software Cost Estimation and Sizing Methods

Software Cost Estimation and Sizing Methods PDF Author: Shari Lawrence Pfleeger
Publisher: Rand Corporation
ISBN: 9780833037138
Category : Computers
Languages : en
Pages : 132

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Book Description
Recommends an approach to improving the utility and accuracy of software cost estimates by exposing uncertainty (in understanding the project) and reducing the risks associated with developing the estimates. The approach focuses on characteristics of the estimation process (such as which methods and models are most appropriate for a given situation) and the nature of the data used (such as software size), describing symptoms and warning signs of risk in each factor, and risk-mitigation strategies.

Impossible Certainty

Impossible Certainty PDF Author:
Publisher: Rand Corporation
ISBN: 083303863X
Category : History
Languages : en
Pages : 204

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Book Description
This report is one of a series from a RAND Project AIR FORCE project, "The Cost of Future Military Aircraft: Historical Cost Estimating Relationships and Cost Reduction Initiatives."