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ME 59700 Spring 2015 Systems Engineering, Part II
Session 25 14 April 2015 Mr. Larry Hopp, CPL
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Current PBL Comments Reuters news article Marine Corps issues
158 aircraft valued at $8.4B grounded Effort to speed up maintenance Budget cuts, lack of spare parts, and underperforming depots $330M to buy spares Looking at ways to improve V-22 readiness.
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Dr. Daniel Goure Lexington Institute
Winston Churchill: “Gentlemen, we have run out of money. Now we have to think.” Acquisition Reform Better Buying Power More activities, reports, metrics, and oversight Programmatic savings more than overset by additional costs for oversight, auditors, contract specialists, testers and analysts Now want greater collaboration
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Dr. Daniel Goure Lexington Institute
Air Force “Bend the Cost Curve” Continuous developmental planning Collaborate on critical early research and concept development before RFP New Approaches to IT and Software Procurements Heritage Foundation Reduce Civilian Overhead Consistent use of PBL Right size DoD’s global infrastructure Identify clear lines of responsibility for buys
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Dr. Daniel Goure Lexington Institute
Brookings Institute Scaled back oversight Expedited acquisition practices Less use of IDIQ contracts Greater protections for commercial Intellectual property
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Dr. Daniel Goure Lexington Institute
Congress We have legislated ourselves into a black hole Align acquisition system with market forces Flexibility of contract types Increase speed at which commercial technologies are acquired Give greater authority and responsibility to program managers.
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Generic Life Cycle Costing Process
Early decisions may have a big impact later Operations Maintenance and support Retirement and material disposal
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Figure 17.5 Twelve basic steps in the life-cycle cost analysis process.
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Figure 17.6 A general cost breakdown structure (CBS).
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Figure 17.7 Sample breakout of cost categories and estimating relationships.
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Figure 17.5 Twelve basic steps in the life-cycle cost analysis process.
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Figure 17.8 Possible sources of data for a life-cycle cost analysis.
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Figure 17.9 Cost estimation by program phase.
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Costing Techniques Parametric Activity Based Early phases
General approach Past experience Activity Based Assign costs to activities (overhead/indirect) Traceability Cause and effect to show high cost contributors Risk
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Costing Techniques Developing Cost Data
Search for data from all available sources Existing data banks Advance system/product planning data Individual cost estimates, predictions, and analyses Supplier documentation Engineering test and field data
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Figure 17.5 Twelve basic steps in the life-cycle cost analysis process.
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Figure 17.10 Cost collection worksheet.
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Figure 17.11 Examples of life-cycle cost profiles.
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Figure 17.5 Twelve basic steps in the life-cycle cost analysis process.
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Figure 17.12 A Pareto ranking of major problem areas.
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Figure 17.13 Alternative life-cycle cost profiles being considered for evaluation.
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Tuesday 21April CP4 Thursday 23 April Homework Ch 17 Problems 2, 3, 6, 7, 20 In class work session Quiz Ch 17 Tuesday 28 April Test #2 Thursday 30 April CP5 Tuesday 5 May Final Exam 6 to 8PM (at least)
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