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Accession Number ADA564464
Title Manufacturing Affordability.
Publication Date Oct 2011
Media Count 6p
Personal Author G. Hagewood H. Snodgrass P. Czech S. L. Schilling
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.
Keywords Cost controls
Cost overruns
Cost reduction
Department of defense
Eoq(Economic order quantity)
Epr(Economical production rate)
Life cycle
Management planning and control
Manufacturing affordability
Military procurement
Msr(Minimum sustaining rate)
Production line planning
Production rate
Program affordability
Project management

Source Agency Non Paid ADAS
NTIS Subject Category 70B - Management Practice
96 - Business & Economics
74E - Logistics, Military Facilities, & Supplies
Corporate Author Defense Acquisition Univ., Fort Belvoir, VA.
Document Type Journal article
Title Note Journal article.
NTIS Issue Number 1303
Contract Number N/A

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