Best Practices: Capturing Design and Manufacturing Knowledge Early Improves Acquisition Outcomes

Cost growth and schedule delays are prevalent problems in acquiring defense weapon systems. Manufacturing systems has proven difficult, particularly as programs transition to production. In Dec. 2008, DoD issued an updated version of its acquisition policy that reflects earlier consideration of manufacturing risks. A joint defense and industry group developed manufacturing readiness levels (MRL) to support assessments of manufacturing risks. This report assesses the manufacturing problems faced by DoD, how MRLs can address manufacturing problems, how MRLs compare to manufacturing best practices of leading commercial firms, and challenges and barriers to implementing MRLs at DoD. Includes recommendations. Charts and tables.

Includes observations on the performance of DoD's 2010 portfolio of 98 major defense acquisition programs; data on selected factors that can affect program outcomes; an assessment of the knowledge attained by key junctures in the acquisition process for a subset of 40 programs; and observations on the implementation of acquisition reforms. To conduct this review, the auditor analyzed cost, schedule, and quantity data and collected data from program offices on performance requirements and software development; technology, design, and manufacturing knowledge; and the implementation of DoD's acquisition policy and acquisition reforms. He also compiled assessments of 71 weapon programs. Charts and tables. This is a print on demand report.

Since 1990, the DoD mgmt. of major weapon system acquisitions has been designated a high-risk area. DoD has taken some action to improve acquisition outcomes, but its weapons programs continue to take longer, cost more, and deliver fewer capabilities than originally planned. Over the next 5 years, DoD plans to invest about $900 billion to develop and procure weapons systems -- the highest level of investment in two decades. This testimony describes DoD¿s current weapons system investment portfolio, the problems that contribute to cost and schedule increases, and the potential impacts of recent legislative initiatives and DoD actions aimed at improving outcomes. Charts and tables.