Accession Number : ADA564464


Title :   Manufacturing Affordability


Descriptive Note : Journal article


Corporate Author : DEFENSE ACQUISITION UNIV FT BELVOIR VA


Personal Author(s) : Schilling, S L ; Snodgrass, Harry ; Hagewood, Gordon ; Czech, Peter


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a564464.pdf


Report Date : Oct 2011


Pagination or Media Count : 6


Abstract : Recent statutory and policy changes have stressed the need for program affordability and identified areas where it might be best achieved. This renewed focus is based on anticipated challenges to future DoD budgets -- as we decrease our operational tempo and as we face the largest deficits and national debt in our history. Within the traditional trade space of affordable cost, technical performance, and timely delivery, affordability has been elevated to at least a quasi if not de facto key performance parameter. Manufacturing affordability is a significant factor in achieving overall program affordability. That said, affordability in manufacturing is not a task that can be mandated. Directing that preliminary design reviews be accomplished prior to Milestone B falls into the mandated category. It follows a simple if/then/else logic of disciplined completion criteria. In contrast, affordability in manufacturing is an outcome of how programs are managed. Effective planning early in and throughout program development is critical to enabling manufacturing affordability. There is no silver bullet and no magic to ensuring manufacturing affordability. To succeed, we must get back to the basics. Our research identifies at least four essential elements of controlling manufacturing costs: (1) Broad-based engineering design trades that consider production line planning and producibility early in the program life cycle, (2) Controlling physical configurations, (3) Stabilizing lot and total quantity buys, and (4) Fitting manufacturing needs into the vendor's strategic business plan.


Descriptors :   *COST REDUCTION , *DEPARTMENT OF DEFENSE , *LIFE CYCLE MANAGEMENT , *MANAGEMENT PLANNING AND CONTROL , *MANUFACTURING , *MILITARY PROCUREMENT , *PROJECT MANAGEMENT , COST OVERRUNS , EFFICIENCY , PRODUCTION RATE , REPRINTS , TIMELINESS , VENDORS


Subject Categories : Administration and Management
      Economics and Cost Analysis
      Mfg & Industrial Eng & Control of Product Sys
      Logistics, Military Facilities and Supplies


Distribution Statement : APPROVED FOR PUBLIC RELEASE