Evolving threats and shrinking budgets require that the Navy adopt and implement new technologies effectively and efficiently. The current work estimates the potential cost savings of the adoption and implementation of three advanced technologies Three Dimensional Scanning 3DLS, Product Lifecycle Management PLM, and Additive Manufacturing AM. A review of the capabilities and current uses of the technologies is the basis for modeling their impacts on shipbuilding operations. Knowledge Value Added models were then used to estimate returns on investment without and with the technologies. These results were used to estimate shipbuilding cost savings over the life of the current U.S. Navy shipbuilding plan. Finally, strategic real options were developed and valued to incorporate implementation flexibility into cost savings estimates. Results indicate that the U.S. Navy can save an average of over 2.70 billion per year over 29 years if the potential improvements available through 3DLST, PLM, and AM are fully exploited, regardless of the implementation approach. If implemented fully and immediately, these three new technologies can save the U.S. Navy 3.07 billion, or 3.37 billion if implemented sequentially.
Thirteenth Annual Acquisition Research Symposium Thursday Sessions Volume II, 04 May 2016, 05 May 2016,