Briefing on Manufacturing Technology (MT) Cost Driver Analysis Program to Naval Air Systems Command, Department of the Navy, Washington, D.C.,
BATTELLE COLUMBUS LABS OH
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This study is in response to the urgent need to reduce manufacturing costs of aircraft systems. The subsystems studied were airframes engines mechanical and hydraulic systems and crew systems. This study was only concerned with cost drivers in the manufacture of components in aerospace companies, i.e., acquisition costs. The objectives of this manufacturing technology MT cost-driver analysis program were to identify cost drivers in Navy aircraft manufacture, identify cost driver commonality, and provide a basic framework for evaluating manufacturing technology MT projects. General conclusions from this study are that we must accelerate our efforts to change the emphasis from only performance to affordable performance. Spiraling aircraft costs must be better controlled. It was also concluded that many costs drivers are designed into aircraft. Further conclusions related to MT are minimum new MT has been introduced into production in the past 10 years, most MT cost drivers are common to all subsystem, MT projects should be selected that provide a high return-on-investment ROI, emerging MT still displays significant cost drivers, MT should be developed and proven acceptable before introduction into production, and developing MT on a production program is seldom cost effective.
- Economics and Cost Analysis
- Manufacturing and Industrial Engineering and Control of Production Systems