Strategic Management of the Cost Problem of Future Weapon Systems

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602
Strategic Management of the Cost Problem of
Future Weapon Systems
(Gestion strategique des co&s des futurs systkmes d’armes)
Papers presented at the Flight Vehicle Integration Panel Symposium held in Drammen, Norway,
22-25 September 1997.
_
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AGARD-CP-602
5. Originator
PAGE
3. Further Reference
4. Security Classification
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UNCLASSIFIED/
UNLIMITED
ISBN 92-836-0058-4
Advisory Group for Aerospace Research and Development
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7 rue Ancelle, 92200 Neuilly-sur-Seine, France
6. Title
Strategic Management of the Cost Problem of Future Weapon Systems
7. Presented at/sponsored by
The Flight Vehicle Integration Panel Symposium held in Drammen, Norway, 22-25
September 1997.
9. Date
8. Author(s)iEditor(s)
September 1998
Multiple
10. AuthorWEditor’s
12. Distribution
Address
11. Pages
Multiple
268
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There are no restrictions on the distribution of this document.
Information about the availability of this and other AGARD
unclassified publications is given on the back cover.
13. Keywords/Descriptors
Weapon systems
Defense economics
Defense budgets
Cost control
Armed forces procurement
Fighter aircraft
Combat effectiveness
Manufacturing
Lessons learned
Computerized simulation
Cost effectiveness
14. Abstract
The Symposium comprised five sessions,each devoted to a particular field:
l
Lessons learned
l
Overview of current programs
l
Cost managementtools
l
Low cost manufacturing
l
Government perspectives
The Symposium was organized by the Plight Vehicle Integration Panel (FVP) of AGARD and
held in Drammen, Norway 22-25 September 1997.
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Strategic Management of the Cost Problem
of Future Weapon Systems
(AGARD CP-602)
Executive Summary
This pubhcation contains the papersthat were presentedat the AGARDiRTO Symposium on “Strategic
Management of the Cost Problem of Future Weapon Systems”. If was held on 22-25 September 1997 in
Drammen, Norway. This event was prepared and organized under the auspicesof the former AGARD
Flight Vehicle Integration Panel ( FVP).
The selection of the topic and the further definition of the desired contents of the Symposium was
based,in the usual manner, on suggestionsand proposalsby Panel Members. The first suggestionsfor a
Pilot Paperwere made by Dr. Filisetti (I) in 1992. Subsequently,ProfessorL, da Costa Campos (P) was
made a co-author, to be joined by Mr E. Lojacono (I) and Mr. L.M. Nicolai (US) in 1993. The final
version of the Pilot Paper, defining the topics to be covered, was prepared by Leland M. Nicolai in
1995 and it served as a template for the Symposium.
The rationale for the importance and the timeliness of its subject was stated succinctly in the
Announcement of the Symposium:
Today, and well into the future, all NATO members face the challenge of maintaining
combat effective air forces within the constraints of ever-shrinking defence budgets.
Successfulstrategic managementof the cost problems of future weapon systemswill be
crucial to meeting this challenge. This symposium aims to present lessonslearned from
recently completed as well as on-going programs. It will present methods for low-cost
manufacturing, and present the government perspectiveon the need to establish realistic
cost targets and then managethe programme to meet those targets. Thus, the goal of this
symposium will be to sharebest practices based on the experiencesof the government,
the military customer, and the industry providers; in so doing, it is hoped to provide a
reference and stimulation for new ideas to help the Nations meet the cost challenge of
the 21st century.
In the opinion of the Co-Chairmen of the Symposium, the intended topics were well covered by the
spectrum of authors and their individual presentations.With the vital assistanceof the National Points
of Contacts, there was also a good representation of various NATO nations, so building a useful,
enriched common experience.We enjoyed hearing the papers and meeting the authors. We consider the
material now published in this report to be of excellent calibre and effective in attaining the aims of the
Symposium, We trust that the readers will concur.
ui
La gestion stratkgique du probl&me du coiit des
futurs syst&mes d’armes
(AGARD CP-602)
Synthkse
Cette publication contient les communications prksent6eslors du symposium AGARD/RTO sur “La
gestion stratbgiquedu probkme du coot des futurs systimes d’armes”, qui a &C organis a Drammen en
Norvkge, du 22 au 25 septembre 1997. Cette conference a Cd conque et organis6e sous 1’6gide de
l’ancien Panel AGARD de conception intkgrke des vkhicules a6rospatiaux (FVP),
Comme c’est la coutume, le choix du thkme et la dkfinition du programme ont &C guidks par des
suggestionset des propositions faites par les membresdu Panel. Les prernikres propositions, concernant
une pr&entation pilote, ont &k faites par le
L’actualitk et I’importance du sujet sont p&is&es de faron succincte dans l’annonce de la reunion :
Aujourd’hui, l’ensemble des pays membresde 1’OTAN doit relever le d&i qui consisteB
maintenir des forces afkiennes disponibles pour le combat maIgr6 les contraintes
impos&espar des budgets de dkfense en diminution constante. La gestion stratkgique
convenable des problkmes de cofit des futurs syskmes d’armes sera capital pour le
relkvement de ce d&. Ce symposium prksente les enseignementstirks de diffbrents
programmes r&cents et en tours. Des m&odes de fabrication g faible coQt seront
prt%ent6es,ainsi que la perspectivegouvemementaleen ce qui conceme l’ktablissement
d’objectifs de co&s r&listes et la gestion des programmes permettant de les atteindre.
Ainsi, ce symposium a pour but de mettre en commun les meilleures pratiques, sur la
base de l’expkrience gouvemementale, militaire et industrielle, afin de foumir aux
nations une r6f6rence et de nouvelles idles leur permettant de relever le d&Y des co&s
du 21kme sikcle.
De l’avis des co-prksidents du symposium, les sujets annoncdsont 6tCtrait& de fagon t&s complbte par
les diffkrents auteurs.L’aide prkieuse apportCepar les Points de contact nationaux a garanti une bonne
reprkentation des pays membres de l’OTAN, enrich&ant ainsi les Bchangesfructueux qui ont pu se
faire entre les participants. Nous avons appr6ciCles prksentationsainsi que les contacts que nous avons
pu avoir avec leurs auteurs.
Nous considkrons que les textes qui figurent dans ce rapport, qui sont de t&s grande qualit& ont
largement contribd g la rkalisation des objectifs du symposium et nous espkrons que nos lecteurs
seront du mEme avis.
iV