SAN FERNANDO VALLEY STATE COLLEGE
A STUDY OF THE DEFINITIVENESS OF
,,
ENGINEERING WORK STATEMENTS AND COSTS PREPARED
DURING THE PROJECT DEFINITION PHASE
A THESIS SUBMITTED TO
THE FACULTY OF THE SCHOOL OF RUSINESS ADMINISTRATION
IN CANDIDACY FOR THE DEGREE OF
MASTER OF SCIENCE
BUSINESS ADMINISTRATION
8Y
CHARLES F.
NORTHRIDGE,
�-1AY
PERRY
CALIFORNIA
1965
APPROVED by
,
l
thesis committee
majof adviser
ACKNOWLEDGEMENTS
The a u thor is indebted to Messrs.
and Vinca Trotter of
Douql as
Noboru Sekiquchi
Aircraft Comp any,
without
whose gu i dance and su p p ort this thesis coul d not have
been writ ten.
i i
TABLE OF CONTENTS
ACKN OWLEDGEMENTS
LIST OF
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ILLUST RATIONS
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INTRODUCTION
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Statement of the Problem
Hypothesis
De f i ni t i on s
HethodolorJy
Data Sources
II
ASSUHf'TIONS AND GROUND RULES
12
PERT/Cost
Envi ronment
fc1anagemont Capab iIi ty
Tho "Customer"
Funct i ons and Or g ani z at i on
III
AN Of"JEF�AT ING PHILOSOPHY
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Des i qn Versus Non- Dos i�n
Functional
Operat i ons
Phase Designations
IV
THE SECTION INDEX CONCEPT
1)6
o
Percentaao of Applic�ble En�ineerin� Effort
LoveI of l3roakdown
Advantages and
PERT/Cost
Di s ad v antage s
Requi rements
S urnma ry
v
INTRODUCTION TO THE DEFINITION PHASE
,
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Concept
Part i c i pating Organ i zations
Conceptual
Phase Trans i t i on
f'hase IA - Prep arat i on for Contractor Definition
Contractor
('
.) umrn() ry
IH -
Proposal Preparation
i i i
61
I.
--
Ch a pt e r
VI
CONTRACTOR DEFINITION
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"Des iqn F r eeze"
an d Gro u n d Ru los
C'oen eral Vlo rk St utement
\'lo r k Brcukdown St ruc tu re [stabIis hed
Tus k f> I an
Enqineerin CJ /lo u r r::st imaros
Ovn rvi ow
II I
Tit an
La n c e
VII
sur.':M!IRY
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Con c lu s io n
APPENDIX II:
APPENfJIX f-3:
81f3LIOGRAPHY
Exa mp les o f Va r io u s W o r k B r ea kdown
St r u c t u res
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Sp ecific Co n t r a ct o r Wo r k Ar eakdow n
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130
LIST OF ILLUSTRATIONS
Paqe
Fiq ure
CPFF CONTRACTS
AS A PERCENTAGE
m-· TCT f\L '::orHRACTS
2
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CmrrRACTOf< ENGI NU::f�l I�G PHASE
Dt:SIG 'JATICXJS
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SECTION LIST
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DEFINITION CYCLE
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LEARNI�JG CURVE AND rJHASE SUf3D IVIS IONS
LANCE ACOUIS IT I ON FLO\•/ CHART
v
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62
DEFINITION
SELECTED CO�JTRACTOf� PROJECT
PHASE EVnJTS
8
0
A f)AfHIAL [NG!r�EERIW·; ORGANIZATinN
CHART
7
•
TYPICAL WEAPON SYSTE� ACQUISITION
f'LO:I CIIAPT
3
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92
98
-
CHArTER I
I�HROOUCTI ON
S tateme nt
of
the rrob lem
The e n t ire ae rosoace ind u s t ry has an d is expe rie nc in g s c hed u le
s lip p age s ,
w eap on
p e rf orman ce f a ilu re s ,
s y s tem d e ve lop men t p rograms .
actual co s t ,
of
an d cos t o ve rru n s on
The s e s hortcomin g s ,
t he e n viro n me n t s u rro u n d in g the de f e n s e in d u s try
arran ge men t quite
That this
d iffe re n t f rom w hat p re v ails
s ho u ld be
so is
of
f ami I y o f t he m )
f o r the o u tp u t o f d e f e n s e -orie n te d in d u s try
f o r mis s ile s ,
u n iqu e .
m iIitary ele ct ro n ics,
It is an
civ ilian
n or is
e co n omy .
it b y an y me an s
u n favo rable inte rp retatio n .
one c u s tome r ( o r rathe r o n e
te rms o f
an d in te raction
in the
n o t at alI s u rp ris in g,
n e ce s s arily a mat te r w orthy
on ly
an d t he governme n t is
in
The ve ry n atu re
amo u n t to million s o f dollars a ye ar.
be twe en the de fe n s e in d u s t ry
man y large
The re
is
in the Un ite d States
f o r miIitary aircraf t ,
e t cet era.
This
is the Un it ed
St ate s Go ve rn me n t .
This arran ge men t nee d n o t p reve n t comp etitio n
amon g tho p rod u ce rs .
p ro d u ce d
How e ve r,
in
the c ivilian e con omy
f irs t an d the c u s tomer d e c i d e s to buy
W it h alI t he
in itiative of
the p ro d u ct is
t he p rod uct or n ot.
d e c is ion s as to w hat is to bo bo u qht,
w hat to p rod u c e ,
f rom o p e rat in g
an d mos t of the
res tin g u ltimat ely w ith the gove rn me n t
--
i n the Dre a o f
def ense -o r i e nted
i n dus try ,
adju s tme nts o f
the [)rodu cers to
rho
thu s
the
Def e nse De oart me nt p
a re lat i ons h i p ve ry
d i f f ere nt
betwee n the orod ucers
If
and
f rom that w h i ch can pre va i I,
and cons ume rs
p roblems are
of
t he n t he comp let i on
p rodu ct i o n
is
i nd i cated.
is
of
It
i n di cate d .
i s nee de d ;
f o r e xamp le ,
aut omo b i lo s .
co n c u rre n t product i on
f u lly s o lved
u su al
t he go vern mo n t D
de f ense contractors
someth i n� i s cri t i cal an d app e ars f eas i bl e ,
i nvolv i ng the r i s ks of
for t he
f ree markot place to occu r.
i s cle ar t hat a m u ch close r p artners h i p b e t w e e n
p art i cu larly
ble ,
i t i s hard
If
a cras h p ro�ram
be f o re a lI t he t echn i cal
i t
is
i m rort ant
the engi n ee r i n g de ve lop m en t
In t he cas es w here the we ap on
and
f e as i -
f o llowed by
system i s
a
cri t i cal or i mno rt an t o n e and t he te chnology has no t be e n complet ed,
the n t ho t echn ology mu s t b e ad v ance d at a v ery
h i gh rate bef ore
f ree z i n g on a comp le t e d eve lop me nt an d p ro d u ct i o n
conf i �u ra t i on .
a ve ry
a p ara! le i
f ew cas es ,
i t may b e .Ju s t i f i ed t o carry on
i nvolv i n g m any
ap p roache s to
o f te chnology ,
and ev en to make p rod u ct i on plan s
s ucces s o f
each o f
a
con t i nge n t
on t he
a d e ve lopmen t p ro gram w h i ch i s n ot comp let ely la i d out.
s i t a t cd t he w i des pread
sy stem acqu i s i t i on
w ell-known
d i s ad v antage s .
i n ce n t i v e f o r pr i v at e man agers
It p rov i des
to red u ce co s t s o r othe r-
i n cre ase e f f i c i e n cy :
"The
n eccs -
u sc of the "cost -rlus -a - f i xcd - f cc" t y p e co nt ract .
t y pe o f con t ract has
I i tt lc o r no
w i se
p rog ram
n u mber o f cr i t i cal e leme n t s
Th i s crash nroqram aprroach f o r w oaron
Th i s
In
cos t -p lus -a-f i xed -fee
i s a cos t re i mb urs e me n t
co n t ract w h i ch orov i de s f or t he ray men t o f
t ho con t roctor.
lho fixed
f oe onr:e n nrJnt i oted
Vilry w i th ilcfu;11
cor,t ,
m<1y br")
hut
2
i1d.J w� fl!d
ty pe o f
a f i xed f ee to
as
<J
does n ot
ror,u t t of
any s u bse q ue nt c h ange s
i n t he w o r k o r se rvi ces to b e
p er fo rme d u nde r th o co nt r act .
Oe c a u s o
the
cos t s ,
the c os t - p lu s - a- f ixe d-f ee co nt ra c t prov i de s t h e
t ra ct o r w ith o nly
con t ro I
Inde e d,
of
cos t s . " I
gove r nme nt a l ma na ge rs
If
a
p ro vide s
ha nd,
ince ntive s
rathe r t h a n by w h e t h e r
it
na t u ra lly w i I I
no give n de a dl i ne ,
pay
it
a c c ompl i she s
it
accomp lis h e s
le s s a t te nt i o n t o
On the othe r
t he CPFF co nt ract
cont r a c to rs '
c o nt racto rs
a nd f in a l cos t s
e s t i ma tes
We e s t i mate t hat cos t
cont r a c t o r
by
hu ndre ds of
re duct i o ns
of
h a ve l i t tle i nce nt i ve
a re
now e xcee di ng
mi I I io ns
10%
to
15%
cont r a c t s a re co nve r te d to f ixe d f e e o r
a r ra nge me nts
u nde r w h i ch t h e
CJOOd pe rfo r ma nce
T h e re a re
ma ny
co nt r a c t o r is
a nnu a lly.
re s u lt w h en
i nce nt ive
re w a rded fo r
2
a nd p e na l i zed fo r poo r pe r f o r ma nce . "
re aso ns
f o r u n-mot
s c h o du les,
la ye d t e s t i ng, e r rone o u s cost e st ima t i ng ,
a ct ion; o ne c a u se o f te n e xpre s se d is t h o
I ate
a re
lo ose ly
ne got i a t e d w ith
co mp lete
2r�ob ort S.
2.
Md�amara,
He nce,
p oo r def i nit i o n as
to
3-405.5D
me mo r a ndum f o r t h o f1 rosi dont ,
3
de -
la c k of a de f i n i t i ve
! A r med Se r v i ce s P r ocu re me nt Re g u la t ion ( A SPR),
Re v.
ch a nge s ,
a nd del i nq ue nt ma nage ment
wo rk-s t at e me nt on w h i ch to b a s e s o u nd cos t e s t i ma te s .
15, 1963,
s e r ve
comp le tion:
"Unde r CPFF a r r a nge ments ,
cont ra cts
may
re se a rch and de ve lop me nt w o rk a nd i nduce t h e
to hold dow n cos t s ,
CPFF
ra i s ing r a t h e r t h a n re ducing cos ts .
at tention t o s pe e d o f accomp l i s h ment .
to p ro lo ng t h e
to de lay
fo r
ju dge d i n te rms o f w he t he r
res u lt a t min i mu m cos t ,
w h e re t h e re is
con­
ma nage
- me nt
in comb ina t ion w it h s t rong p re s s u re s from
a g i ve n de a dli ne
cos t s a nd more
f o r e f f e ct i ve
to a ccompl i s h w o r k on a r a p i d time s c he du le ,
a co rp o r a t ion is
re s u lt by
that
a m i nimum ince nt i ve
t h e CPFF cont rac t,
p rob a b ly
fi xed fee do e s
ab i I i t y t o cant ro I
no r vary i n re I at io n to t ho c ant r acto r' s
July
CPFF
j ust
August
5, 19o2.
-
exactly what the job ental Is.
The Department of Defense has recently ini tiatod a formaI i zed
Project Definition Phase for selected large programs in o rder to offer
partial solution to those oroblems:
"I ts objective is to provide a realistic basis for a
fixed price or incentive contract to develop a system
'
with tho required characteristics."
The intent of this two to six month Project Definition Phase is
to (I)
drastically reduce the number of CPFF contracts (see Figure
I
below), and (2) arrive at specific answers and to formulate specific
plans for the ensuing development proqram.
These soecifics are
intended to cover the major facets of the program,
of specifications,
i e. , estabI ishment
•
the identification of high risk areas, the selection
CPFF COnTRACTS AS A f1ERCENTAGE OF TOTAL CONTf�ACTS
38.0
34.3
33.2
29.9
19.7
D
Source:
12.0
r---,
I
I
:L.---JI
I% I
(q 110S.)
r�obert S,
Ju Iy 5
,
tvlcNamnra,
I %7
I CJ70
(q ��OS.)(I\NTICif'AlED)
memorandum for the President,
I 962.
F i quro I
1
Proqram Definition P�ase,
[draft],
July 8,
(\'lashington:
1963).
Department of Defense Directive
United States Government Printing Office,
Project Definition is identical to v1hat formerly
was called Program Definition.
The nume was chanqed so thut the
process would not he confused with tho more wet 1-known Program
Packaqe used lly DOD Cnmpiroller ChariQs Hi ich.
4
of best technical approaches, etc.
In addition - and the one under
consideration here - is the establishment of a firm and realistic cost
estimate and work statement for the entire development program.
The Project Definition Phase concept has been received by government and industry personnel with mixed emotions; however, the reaction
has, on the whole, been favorable to the basic intent:
"Actually, the program definition phase can be very good or
very bad or even catastrophic depending on the circumstances."
1
"Certainly, we feel that the cost, schedule and performance
estimates resulting from project definition are likely to
be far more realistic and closer to the truth than those made
prior to such an activity."2
3
In heralding new Cor formalized) management techniques
as a
solution to contracting and program il Is, it sometimes happens that
past history and previous learning are either discarded or set aside
in favor of the new approach.
Specifically, in the case of the Pro-
ject Definition Phase, there appear to be some Important points which
have been de-emphasized or omitted entirely.
Concerning Project
Definition, Major General W. Austin Davis has stated that:
problems are not solvable by a formula.
"These
But that's how we're headed."4
1Major Gen. w. Austin Davis, "Problems and Progress - A Mi I itary
View," Aerospace Management, July, 1963, p. 24.
2"Mc Millan Backs 'Project Definition' in Weapon Planning,11
Advanced Design, November,
1963, p.
18.
3
1 am generalizing 'techniques' to include such tools as PERT,
PERT/Cost, PEP, Contractor Performance Evaluation CCPE), Weighted
Guidelines for Profit, etc.
4
From an Interview/analysis by Philip Geddes, "Problems and
Progress - A Military Vlew,n Aerospace Management, July, 1963, p. 43.
5
A maj o r u n sa i d po i n t i s that of t h e nece ss i t y for a na l y z i ng
h i stor i c a l data i n a r r i v i ng at tota l deve l opment p rog ram costs .
The
l i terature concer n i ng Proj ect Def i n i t i o n has ma de no ment i o n of t h i s
a n d ha s ,
i n a d d i t i on , g i ven the d i s t i nct i mpress i o n that on l y d i rect
est i ma t i ng wou l d be ut i ! i z ed .
A d i rect e st i mate of a job i s de ve l oped
by the perf orm i ng i n d i v i d ua l u s i ng wha tever mea n s he ha s ava i l a b l e .
Stated somewhat d i f f erent l y , some ma nagement perso n n e l expect
to see comp l ete (a nd th i s i s the key wo rd ) ta sk def i n i t i on for the
deve l opment prog ram a s a resu l t of the Proj ect Def i n i t i o n Phase .
T hey
a p p ea r to have been l ed to be l i eve t h at th i s shou l d be pos s i b l e, ba sed
on p u b l i c stateme nts by ot her compa n i e s a nd t h e Depa rtment of Def ense .
Th i s a p pa rent na i vet e does not a p pe a r to be I i m i ted to one
compa n y ; o n t h e cont ra ry , it i s qu i te w i desprea d:
"For the f i rst t i me , comp l ete def i n i t i on of a tota l maj or
system [T i ta n I I I ] has ber n comp l eted before actua l h a r d ­
wa re d eve l opme nt beg i ns . "
"[t he prob l em was] def i n i t i o n a n d u n d er sta nd i ng of the
wo r k statement . " 2
The p rob l em a p pea rs to be one of w i desp read m i sconc ept i on a s to
the ex pected l eve l of def i n i t i o n a nd a s soc i ated costs resu l t i ng f rom
the conduct of the Phase i t se l f .
The fo l l ow i ng hypothes i s i s not a
b l a c k a nd wh i te p ropos i t i on ; i t i s i n ten ded more a s a st i m u l a t i ng
quest i o n t ha t must be exa m i n ed by competent ma nagement .
Any mer i t of
th i s t h es i s i s dependent u pon t he deg ree of awa r eness i t may c reate
I
Co l . Jo sep h S . B l eyna i l e r , "T i t a n I l l : A New a n d E n ! i g htened
Ma nagement Co ncept , " Space Ag e News, Ja n ua ry , 1 96 3 , p . 1 0 .
2
Tom Mac New , " I ncent i v e M i l estone s i n T i ta n I l l , " Aerosp ace
Ma nagement , Novemb er , 1 963 , p . 1 0 .
6
i n p roposa l
d i re cto rs,
p rog ram an d e n g i nee r i n g man age r s ,
an d
th e
c ustomer.
Hypoth e si s
T HE 'ULT IMAT E'
PR OJECT
A LIMIT ED SEGHENT
DIRECT
DEF INIT ION PHASE CAN ONLY BE EXP ECT ED TO DEFINE
OF T HE aJSLJII'JG DEVEL OF11�EIH
ENGINEERING COST ESTIMAT ES MUST ,
DEVELOPED !3Y AN
P R OGRAM A�D AS SUCH, T OT AL
T O A SIGNIF ICANT DEGREE,
BE
ANALYSIS OF HIST Of�IC A L DAT A .
Def i n i t i on s
U l ti mate
- u se d
d u r i n g the Ph ase
in
re f e ren ce
i tse l f ,
to th e tota l
i .e .,
th ere
i s ve ry
tw ee n th e con t racto r and the
c u sto me r;
access to e x i sti n g k n ow l e d ge
on
t i me
i n te l l i ge n t,
p rob l e m s w h i ch
Ph ase - fo rma l ,
(tw o to s i x mon th s)
w i th
co nt rac tu a l l y
spe c i f i c
i n te n de d deve l o pmen t an d p ro d u c t i on
D i re c t -
an
d i re ct pe rso n n e l
f ree
wei
1-
a re n o t u n re ason ab l y
fi I I
H i sto r i ca l
D ata - as u sed t h roug h out th i s th e s i s ,
1
The
assemb l e d ,
active
o u t t i me c a r d s an d
i s n ot p ro r ate d to a l I
an d Ru dge ts gro u p .
co n t r acts.
i s mai ntai n e d an d
data con s i sts o f
c l assi f i e d ,
pe r i o d
prog r ams.
a re those w h o
ap p l i e s to th at data w h i c h
au th o r i z e d
requ i re me n ts th at proce e d
w h ose t i me
e xp e n d i tu res
o f an d
be-
state -o f -th e -a r t, e tc,
P roj e ct De f i n i t i on
of
c l ose coop e rat i on
ava i I ab i I i ty
a su b je c t;
man age d e n g i n ee r i n g o r g an i z at i o n ;
advan c i n g the
con d u c t o r "c l i mate "
al I
th e te rm on l y
u p d ate d b y th e Esti mates
e st i mate s an d actu a l
an d tabu l ate d so as to p re se nt
s i g n i f i c an t e n g i nee r i n g cost i n f o rmat i o n ,
I
of
Ch ap te r
I l l
exp an d s
in
some
de ta i I th e fu n ct i on s an d me th o do l ogy
th i c; (] roup .
7
An e s t i mate b ase d on h i s to r i ca l data can be co n t rasted to a
d i rect es t i mate by an i n d i v i d u a l who may o r may n ot h a ve a l l ava i 1 ab l e i n f o rmat i on an d, hen ce , be rest r i cte d to p ast e xpe ri en ce .
Meth odo l ogy_ - The ana l y s i s w i I I be l a rge l y b ase d o n one company's
e xpe r i e n ce a n d p h i l osop hy .
A rguments w i I I be both f o r an d aga i n st
many of the s tate me n t s a n d con c l us i o n s p resente d .
Adm i tted l y ,
d raw i n g con c l u s i o n s b as e d o n a s tudy of one comp any i s c i rcumspect
an d s ub je ct to c r i t i c i s m .
The auth o r ' s i n te n t, howeve r , i s n ot
l i m i te d to r i go rous l y p rov i n g o r d i s p rov i n g the h y p othes i s; rathe r ,
i t i s an attemp t to en l a rge up on e x i s t i ng know l e dge con ce rn e d w i t h
e n g i nee r i n g ma n ageme n t .
The hypothes i s i s t ru l y va l i d on l y when sub jecte d ag a i nst a
l a rge weapon system de ve l op ment p rog ram.
A l though the re i s n o c l e a r
d i v i d i ng l i ne between p rog rams , i t b as i ca l l y ho l ds t rue t h at the
sma l l er t he p rog ram ( i n te rms of cos t and du rat i on ) the g reate r the
degree of accuracy i n the e n g i nee r i n g e s t i mate. 1
Th i s s t a n da rd en g i nee r i n g fun ct i o n w i I I be exam i n e d because :
I.
E n g i nee r i n g i s the re cogn i ze d ' a rch i te ct ' of the we ap on
system.
I t i s a p r i ma ry e f f ort upon w h i ch a l l othe r
f u n ct i on s b u i l d.
2.
E ng i nee r i n g e f f ort u sua l l y acco u n ts for we l l ove r h a l f of
the tota l cost quotat i on.
3.
The maj or i ty of e n g i nee r i ng hou r est i mates can on l y be
I The sma l l e r t he p rogram the g re ate r the n umbe r of fun ct i on s pe r­
formed by one p e rson , hence , the est i mate be comes st r i ct l y n matte r
of man p owe r l oad i n g.
8
i nd i rect l y cor re l a ted w i t h spec i f i c h a rdwa re o r equ i pmen t ,
w h e re a s a l most a l I ma n ufact u r i ng, too l i n g , rei i a b i I i ty ,
e tc . , est i mates a re direct l y re l a ted t o the p h y s i ca l
p roduct .
The i n i t i a l s tep w i I I be to exam i ne a n e n g i nee r i ng org a n i z a t i on
i nc l ud i ng i ts po l i c i e s and p rocedu res.
The pu rpose i s not to
deve l op a new est i ma t i ng a nd accou n t i n g p rocedu re o r tech n i que b u t
t o ( I ) dete rm i ne w h a t o n e compa n y ' s ph i l osophy i s a nd w h y , (2) s h ow
t h a t the b a s i c p r i nc i p l es may have w i de s p read app l i ca b i I i ty, a nd
f i n a l l y , ( 3 ) refu te a nd/or c l a r i fy P roj ect Def i n i t i on Phase requ i rements when s u b j ected to th i s ex i st i ng e n g i n ee r i ng o rg a n i zat i on.
The hypothes i s w i l l be s u b j ected to the fo l l ow i ng genera l
q uest i o ns:
I.
Conce r n i ng the a rea of work statement p repa rat i on, how
"much " of t h e e n s u i ng deve l o pme n t p rogram ca n be def i ned
1
and e s t i ma ted accu rate l y i n adva nce?
2.
Ca n the co nduct of the P h a s e i tse l f s i gn i f i c a n t l y i nf l u ence
the deg ree ( o r l eve l of co nf i dence) i n the resu l t i n g worksta teme nts a nd costs?
The seco nd pa rt of the a n a l ys i s wl l I b e a step -by-step exam i n a t i on of the P roj ect Def i n i t i on P h a se a s exp ressed b y t h e Depa rtme n t
of Defen s e as i t affects the e n g i neer i ng o rg a n i za t i on .
wi l
I
Ch a pter
d i scu s s the ove ra l I concept of the Phase and e n l a rge
I Def i ned i s us ed t h roughout to i mp l y deta i l ed tech n i ca l l y
decla rat i ve sta temen t s of i nte n t .
9
V
..
upon the ro l e of the cus tome r.
Chapte r V cove rs the t i me "B" f rom ( I ) rece i p t of the req uest
for p ropos a l C RFP) th rou g h ( 2 ) the con t racto r ' s p rop osa l s ub m i tta l
for the P roj ect De f i n i t i on Ph ase , ( see F i g u re 2 , p age I 1) .
Chapte r V I
i s con ce rne d w i th events o f the Ph ase i tse l f a n d
t he i n te r re l a t i on sh i p s between the P h ase req u i re ments a n d eng i ­
nee r i n g acco untab i I i ty .
Ch apte r V I I w i I I p resent the a utho r ' s
conc l us i on s an d ree va l uate the hypoth es i s .
Dat a S o u rces
The a utho r ' s expe r i e n ce h as been p r i ma r i l y i n the f i e l d of
eng i nee r i n g accoun tab i l i ty an d p ro�os a l de f i n i t i on , h e n ce , much of
the mate r i a l has been gathe re d f rom d a i l y o�e rat i ons.
The dat a
conce rn i n g the P roj ect De f i n i t i on Ph ase i s a l I f rom cu r rent pe r i od­
i ca l s , speech es, con fe re n ce s , etc.
Det a i l e d outs i de i n fo rmat i o n
on e n g i nee r i n g est i mat i n g a n d accountab i l i ty h as p rove n d i f f i cu l t
to l ocate .
One p rob l em i s t h at most texts l i m i t the d i scuss i o n to ex­
pou n d i n g on the " necess i ty fo r good reco rds" an d " d ata for man age­
ment cont ro l p u rpos es" w i th out a det a i l e d an a l y s i s of the p e rt i nent
fact o rs.
I t i s i n ten ded t h at th i s thes i s exami ne spe c i f i c en g i ­
nee r i n g req u i rements an d, i n do i ng s o , l ay the g roun dwork for f u t u re
rese a rch .
10
t
==c:::A:::=:=
::::;
:::::l
�: j :::�
CUSTOMER
v•tu•T'
===B===
FlOW CHART
:;
.
RECEIPT OF REQUEST
FOR PROPOSAL (RFP)
��:.
SUoMIT ·FIRM PROPOSAL
FOR THE POP
·
-
-
CUSTOMER"COOPERATION &
CONTRACT" NEGOTIATION
PROJECT
DEFINITION
PHASE
I
I
I
I
I
c
I
I
SUBMIT FIRM
RECEIPT Of
PROPOSAL FOR
FIRM RFP FOR
I
OEV. PROGRAM
0 EV. PROGRAM
I
I
========== = = = = = = = ���0��
AllARD OF
CON TRACT
AU THOR I TY
TO PROCEED (ATP)
ASSOCIATED COMPANY
FUNDED STUDIES,
TESTS & VARIOUS
SUPPORT ACTIVITIES
SUBMIT
POP REPORTS
I
I
I
I
I
I
I
I
�·
= = = = = === AWARD
DEVELOPMENT
'j ====�PR�OG�R�AM�==3
OF OEV.
LETTER
ATP
I
I
I
v
FIRM OEV. PROGRAM
CONTR�CT NEGOTIATED
AVERAGE TIME
A-NOT APPLICABLE
B-45 DAYS
POP-4 MONTHS
C-45 OAY$ (SUBMITTAL
2 WEEKS
TIME===-�!>->
AFTEH ENO OF POP)
FIGURE 2
PRODUCTION
PROGRA�
'll ·==
U======
CHAPTEr� II
ASSlJt�PTIONS AND GROUND RULES
Any development proqram has two prime characteristics:
( I ) it is
complex, containing from hundreds to thousnnds of interdependent tasks
to be accomplished, and (2) the vast majority of its tasks, almost all
in fact, are single occurrence tasks, i.e., they are not repeated as
are the work tasks in the mass manufacture of thousands of replicas
of the same piece of hardware.
performed on time
Yet each development task needs to be
(to hold the delivery schedule), for the estimated
dollars (to meet the progrnm budget), and of the required (Juality
(to accomplish the program mission)- just as with repetitive work. I
I n resolving any problem, it is essential to establish the context and the assumptions in terms of which the solution wi I I
carried out.
be
The solution to n problem cannot be any more accurate
than these nssumptions, even if the methods for carrying out the
solution is correct.
For example, in resolvinq a particulnr problem,
an answer might be derived which is correct mathematically, but otherwise is wrong because the mathematical formulation was based upon
false assum!Jtions.
Hence, it is necessary to set down those basic
assumptions or limiting f<1ctors for the ensuing discussion.
I T;1knn from Iii I I i<1rd 111. Pniqo, "llow l'trn-ro.,t
r�dn<HJer," lldrV<1rd llw;inoc,•; f.'nvievl, Novornhr�r, ICJ(d,
12
In
Heirs the Grmt�rill
111.
p.
addition, there wiII be minor qualifications stated in the text that
have a direct bearing on the specific subject.
PERT/Cost
1
First, PERT/Cost is considered to be an established customer
requirement.
Design,
National
June
This discussion wi I I be
I imited to the PERT/Cost Systems
1963, which is now the official Department of Defense and
Aeronautics and Space Administration guide.
done because:
This wil I be
(I) the customer may grant various deviations from
contract to contract,
(2) noncompliance on the part of the contractor,
and (3) misinterpretation among the various PERT and PERT/Cost systems
utilized by different companies.
In addition, it seems desirable to
explore a fundamental point in the PERT/Cost system - uncertainty.
This factor of estimating uncertainty is a basic precept throughout
this thesis and is especially evident in the establishment of the
engineering operating procedures discussed in Chapter
I II.
The two generally accepted time estimating techniques in the
PERT/ Cost system are the single-time estimate and the triple-time
estimate
(optimistic, most
I ikely, and pessimistic).
The single-time
estimate technique suffers from the rather obvious drawback that the
amount of elapsed time to perform an activity is actually uncertain
until the activity has been performed;
i.e., the mathematician would
state that the probability that a point estimate of a random variable
1
rERT (Proqram Evaluation and Review Technique) and PERT/Cost
requirements wl I I he treated in Charter
state that It is o
IV; it wil I suffi�e hero to
formnllzed, systom�tic rroccss usod to control
selected activities and associated costs for a development proqram.
13
--
wi I I be the actua I is zero . 1
A l though the amo u n t of u ncertai nty as socia ted with a sing l e-time
might be neg l igib l e , the f a ct remai n s that a si n g l e-time estimate of
an act i vity to be pe rfo rmed in the f u t u re has i n herent l y a certain
deg ree of u n certa i nty .
The amou n t of this u n certai nty is to some
conside ra b l e extent a f u nctio n of the cha racte ristics of the p rog ram ,
e . g . , a n estimate o f a n u n know n resea rc h activity o r t a s k p roba b l y
possesses a g reate r deg ree of i n h e rent u n ce rtainty t h a n a n es timate
of a known p roductio n tas k .
I n addition , the foregoi ng I imitatio ns
on the sin g l e-t i me estimate wo u l d be a p p l ic a b l e to a sing l e cost estimate tech n i q u e .
Certa i n q u a l itat i ve exc l us i on s i n the time a n d cost es t i mating
tech n i q ues may i mport a co ns i de ra b l e amou nt of u ncertai nty in the
eve n t occu rrence t i me computat i o ns, i f not i n the activity d u ration
time es timates .
Speci f ica l l y , t he exc l u sion of the impact of certain
random va r i a b l es s u c h a s acts o f Go d ( fi res , f l oods , h u r ricanes , etc . )
a n d l abor d i s p u tes may te n d to u nderes timate the time , costs , o r both
f a cto rs req ui red in the pe rf ormance of a p rog ram :
"Acts of God , etc . , ca n occ u r and have occu r red to g reate r
o r l esse r exte n t on a l I ma j o r wea pon systems which have
been s u b jected to the PE RT/Cost tech n i q ue and h a ve had a n
im pact o n time an d/or cost . " 2
Activity cost estimates deserve some a d ditiona l comment .
The
tota l expected cost fo r a p rog ram , de rived f rom the individ u a l activity
' Br uce Mi kose l I, "Uncertai n ties of PERT , " Armed Forces Ma na P-me n t ,
g
Ja nuary , 1963 , p . 20 .
2J b i d
0
14
cost estimates, suffers to some extent from the possibility of uncer­
tainty created by the characteristics of the program network, e.g., an
activity may be added to or deleted from a program network and there­
fore materially affect the prediction of the total expected cost of
the program.
In addition, the expected cost of an activity suffers
from the potential uncertainty associated with the expected time of the
activity, because of the relationship of cost to time.
This relation­
ship or proportionality of changes in cost to changes in time results
from the underlying assumptions upon which the time and therefore cost
estimates are predicated; namely,
I.
The output requirements in amount and quality are given
and fixed for the activity.
2.
The combination of inputs is given and fixed,
e.g.� ratio
of men to machines is three to one.
3.
The amount of inputs is given and fixed, e.g •
•
three men
and one machine are assigned to the activity.
4.
The rate of input is given and fixed, e.g .
•
the three men
and one machine are programmed for 45 hours per week.
In addition to the uncertainty interjected by the inherent
uncertainties in the time estimates, the uncertainty of the cost data
may be affected by the future variations in the cost of the input
factors, e.g., changes in labor rate, changes in material prices, and
changes in depreciation rates.
Even though these variables may not be
predictable to a degree of satisfactory precision, these variables do
exist and should be considered in the assessment of the amount of
15
uncertainty in the cost estimates.
Two further comments on the PERT/Cost system might be considered
at this time, although they are not directly related to the activity
cost estimate discussion.
First, notwithstanding that the expected
values for completion time of a program and for cost of the program
are derived from the activity estimates, the actual cost of the program can randomly vary concerning the expected cost of the program
even though the actual completion time of the program equals the
expected completion time of the program.
The use of time/cost trade-
off models or resource allocation models for the determination of the
"optimum" activity time and cost amounts for a program is subject to
al I of the inherent uncertainties which have been mentioned in previous
paragraphs.
The capability of personnel who estimate activity times and costs
may possibly have a greater impact on the amount of uncertainty in the
. time and cost estimates than any other factor.
Generally, the amount
of uncertainty introduced by the estimating personnel is a function
of their knowledge of the detai Is of the activity or task, and the
environmental situation in which the activity wi I I be performed.
Environmental
factors in this instance refer to such considerations as
the location of performance of the activity, the time of the year in
which the activity wit I be performed, the level of effort which wil I
be applied to the activity, the output qualitative and quantitative
requirements, etc.
As an example of an instance in which a potentially
great degree of uncertainty was interjected into the PERT system,
16
activity time estimates were re(luired for installation and checkout
activities of a major weanon system which were not to be performed
unti I
several
months later and tho personnel 1-1ho were knowledgable
of the activities were not themselves programmed for employment unti I
several months in the futuro.
The former example is neither unrea­
listic nor uneconomical, but is a fact which can impart a significant
degree of uncertainty in the procurement of valid estimates for the
program.
Environment
Second, engineering work statements and costs wi II be discussed
and analyzed as if existing in a noncompetitive environment.
Struc­
turing the question in this semi-vacuum might appear to restrict to
some degree the usefulness of tho thesis.
for the following important reasons.
This has been done, however,
First, the injection of com­
petition creates unrealistic conditions for the hypothesis; namely,
anything may be proposed by the comoany to win the contract, including
deliberately underbidding and underestimating.
Marketing intelligence
may dictate any number of restrictions, requiremonts � etc., a II the
way down to the number of pages in the work statement.
The known
(or imagined) position and strong points and weak points of tho com­
petition may be capitalized upon.
Finally, the knowledge of the com­
petition in any given instance is so meager or is of such a nature as
to be almost valueless.
This is not to state that research in this
area Vlould not be rewarding, only that the problem is of such a magnitude as to warrnnt a unit1uo examination.
17
Management Capability
Throughout this section and in the entire thesis, any given point
or question may hinge on the capability of management personnel.
Thereforep it is necessary to establish the 'reaso nable man' position.
This thesis is essentially a discussion of an engineering philosophy
in operation; without capable engineering management, the ultimate
tool or system is useless.
The author's position concerning manage-
ment capability might best be conveyed in the following summation:
"Many contractor engineering top managers, as they have
advnnced to present positions, have retained biases o f the
design engineer which are reflected in the organization
and management of the engineering e ffort- propensity for
undue personal involvement with the more interesting and
esoteric design problems- tendency to organize solely for
hardware design task with slight attention to equally
fundamental responsibilities for output of technical data
and timely s upport of other departments - tendency towards
excessive 'management by exception' where organizationally
and procedurally they have not adequately prescribed realistic
technical and management boundary conditions or criteria
that wi I I insure control, which in turn results in signi­
ficant technical decisions being made at or below the group
engineer levels that are unknown to higher management o r
where important engineering functions are unaccomplished
'
and not detected unti I highlighted as a problem."
The "Customer"
Basically, the customer is the United States Government; however,·
for a given proposal or contract, the customer is various agencies
and departments in the Department of Defense.
Air Force proposal
office (SPO)
as an example:
Consider the following
The particular systems program
wi I I be the direct day-to-day manager of the program
lA Summar of Lessons Lonrned from Air Force Manaqement Surveysp
y
AFSCP 375-2, June I, 1963, p. 34.
18
a nd mu st conc u r w i th the tech n i ca l a p p roa c h ; the S t ra teg i c A i r
Command may be t h e u s i ng a g enc y a nd w i II w a nt to p rotect the i r i nterests; t h e A i r Force Log i s t i c s Comma nd must i ns u re t h a t p erso nne l at
the va r i o u s d e p ot s a re t ra i ned to h a nd l e t h e weapon; t h e propo s a l w i II
be p a r t i a l l y eva l u a ted a nd a l most comp l ete l y ne got i a ted b y Proc u rement
pe rsonne l ; a nd the deta i l e d ma nufact u r i ng cost- l ea r n i ng-c urves w i II
u s u a l l y be a na l yzed b y t h e A i r Fo rce Sy stems Comma nd .
Wh en t h e c u stome r i s referred to, u n l e s s o t h e rw i s e not ed, i t
refe rs to t he p a rt i c u l a r a ge nc i e s or d e p a rtme nts as a p p l i ca b l e t h at
wou l d no rma l l y be i nvo l ved .
Th i s refe re nce i s treated more prec i s e l y
i n t h e d i s c u s s i o n of t h e Pro j ec t Defi n i t i on Ph a s e i n Ch a p t er V .
F u nct i o ns and Org a n i zat i on
Eng i nee r i ng i s re spons i b l e fo r c reating a nd des i g n i ng a p rod uct
w h i c h can be p rod u c ed econom i c a l l y a nd w h i c h w i I I pe rfo rm sat i sfac­
to r i l y i n the h a nd s of t h e c u stomer .
For a h a rdwa re "end i t em"
I
to
do the job expected by the custome r , i t mu s t i ncorporate d e s i g n fea t u re s w h i c h ta ke i nto co ns i derat i o n p rob l ems o f re i i a b i l i t y ,
l a t i o n, a nd ma i nta i na b i l i ty t h roug h o u t t h e
Ii
i ns t a l -
fe of t h e p roduct .
The
e ng i ne e r a s s umes b roa d re s po ns i b i I i t i e s ; not on l y must he b e c re a t i v e ,
b u t h e must h a ve t h e a b i I i ty to t ra ns l ate h is i de a s i nto d e s i g ns t h a t
a re fea s i b l e e nd i t ems .
T h e eng i ne e r ' s j o b i s to ut i l i z e ex i s t i ng
know l ed ge of nat u ra l p h enome na , mater i a l , a nd t h e i nd u st r i a l a rt s i n
1
T h e term " e nd i tem" i s w i d e l y u s ed t h ro u g hout t h e i nd u st ry . T h e
PERT/Cost G u i de defi ni t i o n is:
"ie nd- i t-eml rcprcs0.nt-s t h n h nrdwFJrn,
snrv l co s , Of)U i pmont-, or fi1c i I i t i nc; -!h<lt ,-Jro dPI ivnrc1h l o tn thr� (jOvn rn
mont o r ttwt cons"l l t u ln <J commi-tmnnt- o n thn pdrt of 1-hn r.ontr<Jct or."
p . 26.
­
19
!
crea ting and des i gning s y s tems that can be prod u ce d and pe rform as
ro�u i re d , conce rning h i mse l f w ith co sts as wei I as w i t h te chno l o gy .
Ark i n categori zes e ng i neeri ng ende avor i nto t h ree b road are a s :
( I ) Re se arch and Ad vance De ve l opment , ( 2) Pro d u ct De velopment , and
( 3 ) Prod uction Lia i son Enginee ring, I
Re s e a rch and adva nce d eve l opment i s t h e most diff i cu l t a re a i n
w h i c h to e s t imate and cont ro l cost s .
cre a tive work ,
It is
a
I t is tho i ni t i a l pe ri o d of
pe riod i n w h ich invent i ons may be re qu i red ;
at a t i me w h e n i t is u nknown if s u cce s s i s ach i e vab l e, and a d i ffi cu l t
s tage i n e s t imat i ng exp l i cit co sts on i t s cou rse of deve l opment.
Neve rt h e l e s s , i t is a nece s s a ry f i rs t step.
A l l funct i ons in t h i s
t ime pe rio d must be h a nd l e d as effic i e nt l y and competent l y as those
w h ich occu r in t h e l ate r grow th and deve l opment time p e rio d.
Th e
cont ra cts for t h is typ e of e ffort a re us u a l l y s ma l l e r and p rece de t h e
P roj e ct De finition Ph a s e .
I n ad d i t i o n , enginee ring acco u nt a b i I ity i n
thi s period is h a nd l e d on an ind i v i d u a l b a s is from contract to
cant ract .
Pro d u ct de ve l opment is e nqineorinq wo rk w h ich goe s on afte r t h e
b a s i c p arameters of t h o sy stem h a ve boo n defi ned and w h ich ,
1 S h epard
M. Arkin, Es timat ing and Cont ro l l inq Enginee ring Co s t s ,
Bos ton:
I nd us t r i a l Ed ucation I ns tit u te, No. PU�-14, J anua ry 1962 ,
p .p. 2-4.
Hi s defi nitions a re distinct l y h a rdware or i ente d and omit
a p o s s ib l e fo u rih catego ry - ana l y tica l s u pport.
The D i re ctor of
Deve l op ment , Re search and Engine e ring, Dr. Haro l d Brow n, i n a s p eech
to the Arme d Forces Communicat i ons and E l e ct ronic s Assoc i at i on,
Wa s h ington , D.C., J une 1 2 , 1962 , cate gorize d eng inee ri ng effort i nto
six s p e cific a reas :
( I ) f�e s oa rch , ( 2) Exp l o ratory Deve l opment ,
( 3 ) Advance d Deve l op ment , (tl) Enginee ring Deve l op me nt , ( 5 ) Op e rat i o na l
Sy st ems De ve l o p ment, and (6) Management and Supp ort,
re rsonne l h a ve
fo und t h o diffe rences d i ff i c u l t -ro re co(jn i ze i n p ract i ce .
20
t heore tica l l y , termina te s w ith t h e first re l e ase of a set of p ro ­
d uction draw ings to manufact uring,
In e l e ct ronic te rmino l ogy , it is t h at oortion
of
t he work occ ur­
ring a fter the init ia l " b re adboard" h as been des igne d and made t o
fu nct ion,
I n othe r word s , a l l
the ba s ic p rob l ems a re so l ve d that may
re �uire inve ntiveness in an enginee ring se nse ,
There is a so l ution
th at can be s u c ce s s fu l , b ut which is not in a form re ad i l y u s ab l e in
p ro d uct ion.
The s o l u t ion occ u rs d u ring t h e practic a l e nginee ring
period ; t h e p e rio d in w hich p roduc tion cos t s mu s t be ana l yze d and in
w h ich s u ch matte rs as t h e a b i l ity of manufa ct u ring to obt ain second
and t hird so urce s on a l I e l ements of the prod uct must be cons ide re d .
The de ve l op ment enginee r must determine if the re are be tter or c h e a pe r
ways i n w hic h the function can be h a nd l e d .
The most imp ortant ch aracte rist ic o f t h is p hase is th at it p re ­
ce de s t h e manu factu ring s t a ge.
Thu s , it become s a very crit ic a l
perio d in terms of p rogram t iming .
T h e p rob l e m of e s t imating engi­
ne e ring h o u rs d u ring t h is p o rt ion of t ime arc not as diffic u l t as t h e y
a re i n re se arch are a s be c a use it is p os s ib l e t o d raw upon past e xp e r­
ience .
Th is e xpe rie nce s h o u ld re l ate t ime and manp owe r re r]u ire me nts
for the p ro d uct de s ign on any p a rticu l a r item.
The t h ird type of e ng inee ring is t hat w hic h occurs a fter t he p ro­
duct has been re l e ased to manufact u ring in the fo rm of a p rod u ction
re l e ase , inc l u ding the first set of manufactu ring draw ing s .
know n as p rodu ction l ia ison e nginee ring.
Th is is
One of t he first funct ions
of l ia ison enqinocrinf] is to mak e sure thnt t h e e nd it em is p ro d ucib l e
21
VICE-PRESIDENT
r ----r----- -- ,
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AO�ANCEO 1'/EAPDNS
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ENGINEERING
DEVELil?MEN T
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STRUCTURES· I JO
PRODUCT OEVHOPMErH
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\'lEAPON SYSTEMS
ENGINEERING
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ANALYSIS
ENGINEERING
20
-FLIGHT MECHANICS- ZCO
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ADVANCED SPACE
ENGINEER! NG
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RESEARCH-300
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CHEMI STRY-301
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MECHANISM· : 02
TH ERM 0 OYNAMI CS- 2�2
INSTRUMENTAL
CHEC�-�02
;Q�
IHCHANICAL-303
-MISSILE OYNAMICS-210
PACKAGING-304
GUIDANCE &
CONTROL-211
ELECTRON ICS-110
STRUCTURAL
MEGHANICS-212
E QUIPMEN T-
NON-METALLICS-310
ANALYSIS-213
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SIMULATION
13
RE'"RDS-�:
RELEASE &
MOTOR CASE-: 21
PROPELLANT-122
ACOUSTICS-216
MATE ill AL-�. 4
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METALS·CERAMICS-320
OPERAT!QNS-�cJ
ESTIMATES &
BUOGETS-421
METhLLURGICAL
-SYSTEMS INTEGR I TY-220
OEYELOPMENT-321
SCHEDULES- !22
HIGH TEMPERATURE
RELIASI Ll TY-221
MATER! ALS-322
TEST PLANNING-222
�DESIGN PROCESSES-130
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MATERIALS-313
TEST-215
V1BRATIGN &
LiB:iARY-4'2
PLASTICS-312
STRUCTURAL
PROPULSlD�-'2�
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FINISHES-311
ORGANIC
SYSTEMS-214
INSTRUMENTATION-I 1 4
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ILLUSiRATIONS-411
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s·�P?ORT
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ANALYSIS-3C2
MISSILE-:11
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STRUCTURES-i01
FACIL1 Tl ES·
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PRJ DUCT ION METHO OS
MR & PM
30
SUPPORT
EQUIPMENT-' �3
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810-FACTORS-223
COMPONENT
STAN:JAROS· i 31
PRODUCTIQN
LIAISON-132
VALUE
EN GINEERING·133
A PARTIAL ENGINEERING ORGANIZAT1CN CrlART
-
THE CHART WAS iNITiALLY, 9ASEO ON ONE COMPANY,
SOURCE:
�O'IIEVER, IT NOW APPEARS AS A COMPOSITE THAT ,;AS B:OEN
EXTENSIVELY MODIFiED 8 Y AR�I�. ESTIMATI�G ANO c��:�cL�!�G
E'lGINEER INS COST. AND EHRETT LAI TALA. ENG !�E::>t ��G A Nil
Q'lGANi ZAT 0�. nCME#OOO. 1LLINJIS: RICHARD 0. IR�I�. 1NC.,
ANALYTICAL
PROCESSES-230
COMPUTING-231
JATA-232
l95S
FIGURE
3
o rd i na r i l y used i n othe r p rog rams .
Ne\'t compa n i es engag i ng i n e n g i n ee r i ng g e ne ra l l y b ecome p roj ecto r i e n te d organ i za t i ons .
Th i s wo rks e f f ect i ve l y f o r a wh i I e .
Howeve r ,
a s a d d i t i o na l projects (genera l l y of a s i m i l a r natu re ) a re u n d e rta ke n ,
some d up l i cat i on f requ ent l y beg i ns to appear .
At th i s po i n t, pres s u re
deve l ops to estab l i s h a f u nct i on a l orga n i za t i on .
G roups of spec i a l i sts
ten d to appea r , and presen t l y the organ i za t i on has a n a e rod y n a m i cs
depa rtme n t , a computer depa rtme nt, a test i ng depa rtme nt, a n d so forth .
The re i s st i l I a need for some k i n d of p roj ect u n i ty i n s uc h a n
o rg a n i za t i on:
" A l most a l l of t he o rga n i za t i on s I h ave exam i ned a re
f u nct i on a l l y g rouped b u t w i th a project ove r l ay f o r
the pu rpose o f coord i n a t i ng the ef fort of these f u nct i on a l
g roups on a p roj ect bas i s . T his type of hy b r i d o rg a n i za t i on
i s exceed i ng common i n the a i rc ra f t i n d u s t ry . . . . conce rned
w i th the l a rge r and more comp l ex sy stem . 11 1
The prob l ems o f es t i mat i ng and contro l l i ng cos ts a re s i m i l a r i n
both o f t hese o rg a n i zat i ons .
They va ry on l y i n the deg ree to wh i ch
est i mates m u s t be obta i ned f rom pe rson ne l not d i rect l y u n d e r the
con t ro l o f the p roj ect d i recto r .
The comp i l at i on o f expended eng i neer-
i n g hou rs cnact ua l s") a l so bea rs a n i mpo rta nt re l at i on s h i p a s to how
the est i mate w i I I be made .
Th i s i s beca u se of the u nd e r l y i ng a s s ump-
t i on that i n o r d e r to con t ro l e f fect i ve l y, p rog ress m u s t be corre l ated
to o r i g i na l est i mates .
Hence, any a n a l ys i s of eng i neer i ng acco u n ta b i l -
i ty m u s t ta ke i n to con s i d e rat i on not on l y the o rg a n i za t i onal work
stateme n t and est i mates but a l so the s u bsequent co l l ect i on o f
I
R . J. Sha n k, V i ce-Pres i dent Enq i nce r i nq, Huqhes Aircra f t Com pany,
I n "The Manaqement o f Sc i en t i f i c Manpov10 r, 1 1 Amcr i can M<:maqcment
Assoc i at i o n, New York: Resea rch and Deve l opment D i v i s i on, 1958 , p. 27 .
24
a c tu a l s.
T h e Weapon Sys tems E ng i n ee r i n g Dep a rtme n t i s
p ro d u c t de velopmen t e f f o rt.
It
ab i l i ty s y s te m m u s t b e de ve l ope d
va r i ous
f u n c t i ons
respon s i b l e
i s h e re t h at t h e en g i n ee r i n g a c co u n t ­
in
s u c h a man ne r a s to h a n d l e t h e
f ro m con t ract t o con t r act .
Fo r ex a mp l e ,
weapon s y s te m t h e re a re u s u a l ly m u l t i p l e co n t r a cts;
mis s i l e de ve l opme n t ,
e t c.
for a l I
l a u n ch capab i l i ty ,
He n ce, t he re may be u pw a r ds of
on a g i ven
one e ac h
s y s te m i n -teg rat i on ,
for
t ra i n i ng ,
a h u n d re d a c t i ve c on t r a ct s w i t h i n
We apon Sys te m s En g i n ee r i ng.
T h e o rgan i z a t i on c h a rt h as been s i mp l i f i e d s omew h at by t h e
de l e t i on o f
ma n y
spe c i f i c job
i t somet i me s h appe n s th a t
i n d i re ct peop l e w i I I be
t o ch a rge th e i r e f f or t t o a p a rt i c u l a r cont r a ct t a s k; t h i s
except i on ,
an d w i I I
h ow e ve r ,
d i s c u s s i on.
The
req u i re d
i s the
not be i n c l u de d a s pa rt o f t h e f o l l ow i n g
On l y t h e f u n ct i on a l
t h e p rojec t o ve r l ay
P re s i de n t ,
Fo r a
i n d i re ct st a f f an d " a s s i s t a n t to" pos i t i on s.
e ng i n ee r i n g o rg a n i z a t i on
i s s h ow n ,
f o r t h e p a rt i cu l a r p rog ram report to a V i ce­
P rog r a ms .
i n d i v i dua l
f o u r b ra n ch e s :
en g i n ee r i n g s e ct i on s h a ve been organ i ze d
(f) De ve l opme n t , (2) A n a l y s i s , (3) Mate r i a l s Re s e a rch
and P ro d u ct i on Me t h ods ,
s e ct i on c a n,
i n to
an d ( 4 )
A d m i n i s t rat i on.
i n g e n e r a l , be dete r m i n e d f rom
a n d spec i f i cs w i I I
n ow be an a l y ze d
The
f un ction of
i ts t i t l e;
a
t h e det a i Is
i n t h e f o l l ow i n g ch apte r.
--·
CHAPTER I II
AN OPERA TING PHILOSOPHY
"In the professional work of the engineer, measurement
A theory of nature is not
is an essential activity.
truly descriptive unti I it becomes quantitative, nor
is a scientific observation fully meanin qful unti I
number s can be assoc iated with tho phenomena under
study.
This being the case, it is surprising that
engineers themselves have shown little interest in
measurements of their functional work.111
"In the functions of estimating costs
•
•
•
•
•
it was
f ound that almost all contractors either did not have
adequate methods for developing valid cost data or
else did not make use o f the data avaiIable to them
when preparing est imates,
Almost always there was
inadequate correlation between cost proposals and
2
records of actua I cost experience."
This chapter wiI I
examine the specific engineering estimating
and control techniques that have been established by one aerospace
company.
The justification for the following systems and procedures
is the important point.
It is the approach that is under examination.
Since engineering problems are not limited to one company, the principle value will be the adaptability and interrelationships of the
Project Definition Phase requirements to industry problems,
'Louis B. Barnes, Organizational Systems and Engineering Groups,
Boston:
Graduate School of t3usiness Ad ministrat ion, D ivision of
Researchp Harvard University, 1960, p. 118.
2General Gerald F.
Novembc r-Deccmbo r,
l<eelinq, " Air Force and Industry, " Ordnance,
Ir:J6 3, p. 7r37.
26
T h e re a re s o me s tan d a r d " i nq re d i e nts11 t h at make up a we apon
s y s tem.
E f f o rt s u c h
eq u i pment,
as
des i gn
f o r t h e m i s s i l e and g ro u n d s upport
f l i g h t t e s t p rog ram,
cont r a c t d a t a , pe r s onne l
t ra i n i ng
and deve l opment te s t i n g a rc f a i r l y wei I
re cogn i ze d t as k s t h a t m u s t be
a ccomp l i s h e d .
i ng re d i ents
T h e a r ran gement o f t h e s e
of o r de r i s know n as
a wo rk b re a k down s t r u c t u re.
T h e w o rk b re ak dow n
s t r u c t u re i s t h e f o un d at i on f o r PERT/Co s t netwo rks
e s t i m ates,
s a l e s orde r a s s i gnmen ts,
i nt o a s e mb l ance
and a c t i v i ty
an d w o rk a u t ho r i z a tion s y s tems.
Appen d i x A s hows a n u mbe r o f examp l es of top- l eve l
Appen d i x B i s t h e w o rk b re a k down s t ru ct u re t h a t i s t h e
s t ructu res.
bas i s
w o rk b re ak down
f or a l l
deve l opment p rog rams w i th i n t h e company.
s i ve l y det a i le d f o r a l I
I t i s e x ten-
d i re ct f unct i ons w i th i n the company.
Each
Mat r i x N u mbe r h a s been s ubje cte d to repe ate d exam i na t i on and j u st i f i e d
f rom p ro g ram to p rog ram.
The
re a de r s h o u l d e x a m i ne
i s often re f e r re d t o t h ro u g h ou t t his t h e s i s .
wi I I
ex a m i ne t w o majo r s ub d i v i s i ons:
The
i t c l os e l y a s
i t
f o l l ow i ng ana l y s i s
De s i gn ve rs u s Non-Des i gn a n d
t h e P h a s e de s i g n at i on.
Be f o re s t u dy i ng a spe c i f i c company,
on t h e app l i cab i l i ty an d
D u r i ng
Comman d
i mpo rt ance of
i t s e e ms
i mport ant to comment
t h e ana l ys i s .
1962, t he USAF I ns pe ct o r Gene ra l and A i r Fo rce Sy s t e ms
(A FSC>
comp l et e d unp re ce dente d s u rve y s o f
g ro u p of A i r Fo rce cont racto rs .
a
T h e s ubject w as t he
rep resentat i ve
re c u r r i ng de f i -
c i e n c i e s th a t a re common to compan i es wo rk i n g u n d e r A i r Fo rce cont r a ct s ,
wh i ch
a re p ro b l e ms of j o i nt conce rn to t h e ae rospace
AIr Fo rco .
!"he ro w o ro
i n d u s t ry an d t h e
twonty- fou r contract or•; �ju rvoyod wh i ch
27
\
represented a cross - sect i o n o f major e l ectron i c , aeronaut i ca l ,
ba l I i st i c and space sy stems prod ucers .
The con tracts stud i e d were
o f h i g h va l ue , genera l l y a bove $25 m i I I i o n .
The res u l t i ng document
i s , A S umma ry of Lessons Lea rned f rom A i r Fo rce M a nageme nt Su rvey s ,
pu b l i shed J un e I , 1 963 .
I t i s a ca nd i d t reatment of many prob l ems
a n d as s uch may pe rm i t the d raw i ng of i ncor rect i n f erences as to the
g e n e ra l ef f i c i ency of i nd u s t ry/A i r Force ma n ageme n t , p a rt i cu l a r l y by
those u n i n i t i ated to some of the common def i c i e nc i es :
"The comp l ex i ty of the i nte rre l a t i o n s must be co ns i dered
i n so l v i ng these prob l ems and i s the pr i nc i pa l reason t h a t
more sat i s f acto ry pe rma nent so l ut i o ns ha ve not been fou n d
l on g ago . " l
I mprovements requ i re emphas i s by ma nagement a t a I I
I eve I s .
The
exte n t to w h i ch these s ame accou nt i ng prob l ems repeated l y occu r s hou l d
e l i m i na te a ny comp l ace ncy o r rat i o n a l e on the pa rt of a n y compa ny that
s uch sho rtcom i ngs app l y on l y to othe rs .
A p r i ma ry ta s k for cont ractors i s then to estab l i s h an acco u n t i ng
p roce d u re that w i l I co l l ect i n deta i I the hou r u s age on the va r i ous
cont racts a nd deve l op a co ns i stent system of compa r i son .
I n th i s
m a n n e r i t can read i l y be seen that the know l e dge ga i ned i n , f o r
examp l e , des i g n i ng a spec i a l type of wa rhead f o r o n e custome r ca n be
app l i ed towa rd the des i g n of a nothe r wa rhead .
T h u s , the accou nt i ng
system must be esta b l i s hed to prov i de hou rs on a l I wa rheads on a l I
m i ss i l es .
Eve ry end i tem of wo r k to be accomp l i s hed m u st be categor-
i z ed a l ong p respec i f i ed accou nt i ng system l i nes i n orde r to ma ke
A S umma ry of Lessons Lea rned f rom A i r Fo rce Man aqeme n t S u rveys ,
AFSCP 375-2 , J une I , 1 963 , p . i .
28
compa r i so n s .
The s u b d i v i s i on s o f t h e com p a n y cost co l l e ct i on sys tem d i ctate to
some deg ree t h e b re a kdow n f o r e s t i mat i ng p u rposes .
The acco u n t i ng
s y stem s u b d i v i de s w o r k i n to recog n i z e d segments f o r the e n t i re com·
p a n y a n d a s s i g n s a u n i q u e s a l es o rd e r to e a c h .
. n umbe rs a re a p p l i ca b l e t o a l l
t h e re
d i rect w o r k
T h e s a l es o rd e r
i n t h e comp a n y .
Be l ow th i s
I s a s u b s i d i a ry accou n t i n g s y s tem pecu l i a r to eng i n ee r i ng .
Dee s i gn Ve rs u s Non - Des i g n
T h e f i rs t maj o r d i st i nct i on o f e f f o rt occ u r s between Des i g n a n d
Non-De s i g n g rou p s .
•
T h i s s e p a rat i o n o f f un c t i ona l
the p ropos i t i on t h at
it
g ro u p s
i s b as e d o n
i s des i ra b l e t o h a ve d i rect p e rs o n n e l
a te l y a n d cons i s t e n t l y e s t i mate a n d c h a rg e the i r t i me to the
o r d e r of d e f i na b l e job or tas k .
i n deta i l
T h i s d e ta i l ed exam i nat i o n h a s been a n d w i l I
o f the Est i mate a n d B u dgets g ro u p ;
p ro d uct s ,
it
is:
what each g ro u p d oes .
con t i n u e to b e a b a s i c ta s k
l ea d e rs a n d s u pe rv i so rs , a n d
on-the-s pot c h e c ks o f t h e w o r k i n g e n g i n e e rs .
h i g h e r m a n ageme nt . 1
it
i nvo l ves a rev i ew o f the g ro u p s '
i nterv i ews w i th g ro u p
b a s e d o n t h e emp i r i ca l
l owest
I n o rd e r to ma ke t h i s s e p a rat i on ,
i s neces s a ry f o r m a na g eme n t to know
. phys i ca l
a cc u r -
Th e dete rm i na t i on
is
i n f o rmat i on a n d t h e s ub j ect i ve eva l u at i on o f
T h e overa I I
Bec a u s e o f t h e i r f u nct i on a l
re s u I t
i s k now n
i n a d v a nce , vJ h i c h
d i s c i p l i ne o r n a t u r e o f th e i r e f f o rt ,
T h e s e p a rat i o n , stemm i ng f rom a i rc ra f t ex pe r i e n ce , h a s b e e n i n
e f f ect f o r ove r f i fteen yea rs .
T h e re a re c h a nges ; i . e . , s u b - f u n ct i o n s
g row t o t h e status o f a n e w g ro u p , des i g n f u nct i on s w i l I s ep a rate f rom
a s pe c i f i c a n a l ys i s tas k , etc .
Howeve r , these a re re l a t i ve l y s l ow
c h a nges b a s e d o n the r i s e o r dec l i n e of a s p ec i f i c d i sc i p i i nc .
s h o u l d b e noted t h at t h i s s e p a rat i o n o f e f f o rt
p e n d e n t o f o rg a n i z at i on a l r e l at i on s h i p s .
29
i s comp l o te l y
It
I n de­
.......­
t�
en g i nee r i n g p e rson ne l va ry i n t h e i r ab i l i ty to recogn i ze orde r o f
det a i l on a g i ven con t ract .
d i t i on s :
Th i s i s a re s u l t o f two p oss i b l e con-
( I ) the p a rt i cu l a r d i s c i p l i n e does not l en d i t se l f to a
det a i l e d ha rdw a re or task b reakdown o r ( 2 ) so many d i f f e re n t l owI e ve I j obs are p e rf o rme d d a i l y as to make n one re cogn i zab I e .
E ach o f
these con d i t i ons w i I I be c l a r i f i e d by t h e fo l l ow i n g e xamp l es :
E n g i nee r "A", i n Ast rod y n am i cs - 2 0 1 , may ana l yze an d de f i ne the
comp l ete m i ss i l e ae rody n a m i c coe f f i c i e n ts wh i ch i n t u rn a re used to
determ i ne tot a l ae rody n am i c l oa d i n g for a s t rength a n a l y s i s .
H i s end
p ro d u ct may b e a ra n ge o f va l ues o r a set o f cu rves f o r t he tot a l
, m i ss i l e .
He may deve l op a mathemat i c a l mode l to be used for p re l i m-
' i n a ry p e r fo rman ce eva l uat i on , an d may de f i ne pos s i b l e m i s s i l e
t raj ector i es .
Eng i nee r "B", i n S t ru ct u res - 10 1 , w i l l make det a i l e d p ro d u ct i on
d raw i n gs f o r components , s u b ass emb l i e s , a n d systems o f the m i s s i l e .
He w i I I a l so u n doubted l y pe rform a n a l ys i s work , b u t on a det a i l e d
l e ve l .
He may be con ce rne d w i th the e n t i re m i ss i l e , or j ust a port i on
the reof ; h owe ve r , h i s d a i l y e f f o rt i s on a det a i l e d l e ve l .
E n g i nee r " C", i n Comp ut i ng - 2 3 1 , may , i n a g i ven d ay , h a n d l e a
w i de va r i ety o f i n p uts , e . g . , test res u l ts , comp onent f a i l u res ,
eq u i p me n t l oa d i ngs , t raj e ctory cu rves , e tc .
He may deve l op " q u i ck i e "
p rog rams to answe r an a l most u n l i m i ted n u mbe r of q uest i on s cove r i n g
eve ry con ce i vab l e aspect o f the p rog ram.
E n g i nee r " D'� i n Check - 402 , pe rforms a se l f-exp l an ato ry f u n ct i on .
In
a
g i ven day h e may chock one o r
a
30
h u n d re d d raw i n ()S f o r comp l i i'ln C(l
to t h e d ra ft i n g man u a l a n d s t a n d a r d e n g i n ee r i n g p ract i ces .
He i s
req u i re d t o check a l l B i l l s of Mate r i a l f or sou rce , make-or- b uy dec i s i on , we i gh t , etc.
E n g i nee r " E", i n Est i mates a n d Bu dgets -
42 1 ,
wi I I p rep are tot a l
p rogram man l oa ds , ch a n ge est i mate s , dep a rt men t a l b u dgets , e t c .
In
e s s e n ce , he wo rks f o r t h e p roje ct o f f i ce i n s upp l y i ng i n f ormat i on .
The s tateme n t i s often h e a r d t h a t ' i f a n e n g i nee r' s p aycheck w as
depen dent on the corre ctness an d deta i I o f h i s t i me ch a rges , t h e
man agement wou l d ge t s ome res u l ts . ' I
T h i s s tatement i s academ i c fo r
the s i mp l e reason t h at i n t he l arge de fen se-o r i ented f i rms , an e n g i , nee r 1 s va l ue i s b as e d on h i s ab i l i ty to do t h e j ob .
The cor rect l y
f l I l i n g out o f a t i me ca rd i s of secon d a ry i mp o rtan ce .
Hen ce , as s u m i n g
th at the e n g i nee r i s a ' re ason ab l e man 1, h e w i l l est i mate an d ch a rge
h i s t i me t he b e s t he can - t h i s best be i ng t h at w h i ch does n ot u n d u l y
det ract f rom h i s b as i c e n g i nee r i n g res p on s i b i l i t i es .
E n g i nee r
"A"
cannot recogn i ze t h e det a i l e d s ub d i v i s i on s o f the
m i s s i l e as c an " B" .
E n g i nee rs
11C"
and
" D"
de a l w i th l ow- l eve l t as k s ,
b ut the n umbe r o f t as ks i s l a rge an d usu a l l y o f s h o rt d u ra t i on as to
l ose t he i r i n d i v i d u a l i de n t i ty .
E n g i nee r " E " i n h i s cap ac i ty can o n l y
recog n i ze t h e i n d i v i d u a l cont ract .
When the d a i l y n umbe r of d i f fe rent c h a r ges app roaches f i ve o r
s i x, i t h a s repeate d l y been f oun d t h at the typ i ca l e n g i nee r w i I I not
bothe r t ry i ng to keep t rack o f t h e h a l f - hou r or hou r jobs - h e w i I I
I The author i s un ab l e to s u b stant i ate t h e n umbe r o f t i mes a n d
p l ace s t h a t th i s gene ra l s tate me n t h as been h e ard - an d by a l I l e ve l s
of man agement .
31
.�
I
j u s t c h a rge to a n um b e r he remem b e r s o r t h e
I n e s s e n c e t h e n , t h e re
l a st o n e u s e d .
i s a bod y o f e n g i nee r s w h o
i n t he i r d a i l y
e f fo r t c a n cons i stent l y e s t i mate a n d c h a rg e t he i r t i me a c c u r a te l y to
va r i ous
l eve l s o f deta i l ,
i tse l f ) to t h e
l ow e s t C a n
r a n g i ng f rom the h i g h e s t C t h e contract
i nd i v i d u a l
component o r d ra w i ng ) ,
Th i s
is
the f i rst b a s i c p rem i se o f t h e wo r k b re a kdown s t r u c t u r e p h i l o sop h y .
I t m i g ht a p pe a r t h a t e ac h g ro u p wou l d d i f f e r
in
i ts a b i l i ty to
recog n i ze deta i l
a n d shou l d be t reated s e p a rate l y .
th i s
howe ve r , t h e re a re a n u m b e r o f m aj o r b re a k s s u c h a s
i s c o r rect ;
b etwee n tota l
g ro u p e f f o rt
M a t r i x No .
f i ne d
To some deg ree
m i ss i l e a n d t h e v a r i o u s s u b s y s tems t h e r eo f .
Non-Des i g n
i s t h e re f o re d e f i n e d a n d est i mated f o r t h e tota l
m i ss i l e ,
2 . 1 , w h e re a s the m a j o r i ty o f Des i g n g ro u p s ' ef f o rt i s d e -
i n t h e s u b s y s tem 2 . 2 t h ro u g h 2 . 8 .
I n o t h e r wo rd s ,
most g ro u p s
c a n recog n i ze m i s s i l e e f f o rt 2 . 0 v e r s u s g rou n d s u p po rt e q u i pment 3 . 0
e f f o rt b u t ca n not recog n i ze g u i d a nce s u b sy stem f rom p ro p u l s i on .
s i mp l i f i ed e x p l a n a t i on o f t h i s type o f a na l ys i s h a s
l ed to t h e Des i gn
a n d Non-Des i g n g ro u p d i v i s i o n a n d, a s m i g h t be expecte d ,
-20 1
i s a Non-Des i g n g ro u p a n d S t r u ct u re s - 1 0 1
Th i s
A s t ro d y n a m i c s
i s Des i g n a n d so o n .
To t h e ext e n t o f d eve l op i ng wo r k p ac ka g e s a n d a s s i g nmen t o f wo r k ,
g ro u p
i s h a n d l ed s e p a rate l y ;
howeve r ,
each
f o r t h e p u rpose o f t h e w o r k
b re a kdow n s t r u ct u re a s e p a rat i on betwee n D e s i g n a n d N o n - De s i g n
i s co n -
s i d e re d a d e q u ate .
I n a d d i t i o n , Des i g n g ro u p e f f o rt h a s b e e n catego r i z e d
Pe rso n n e l
s p ec i f i c f u nc t i o n s or o p e ra t i o n s .
req u i re d to e s t i ma te a n d c h a rge a l I
32
i nto n i ne
i n D e s i g n g ro u p s a re
o f t he i r t i m e to o n e o r more o f
t h e fo l l ow i ng Ope rat i on numb e rs :
F unct i ona l Ope ra t i ons
Ope rat i on I - " S y s tem" Re v i ew D raw i ng Corre ct i ons
T h i s ope rat i on cons i s ts of a l I ch anges or co rre ct i ons ma de by
De s i gn g roup pers onne l to re l e a s e d d ra\'J i ngs as a re s u l t of
re v i ew by t h ree spe c i fi c g ro u p s : Ch o c k -402 , Re l e ase -4 1 4 ,
I t i nc l u des a l l coord i na t i on �1 i t h t h e s e
and We i g h t -2 1 3 .
gro u p s , a l I i nvest i g at i on requ i re d i n orde r to comp l e te the
ch anges or correct i ons , and ch anges re qu i re d on a s s oc i ate d
draw i ngs and ne xt ass emb l i e s . Wo rk may be i n i t i ate d by the
re ce i p t o f coord i nat i o n p r i nts or the o ra l re q u e s t of g roup
p e rsonne I .
Operat i on 2 - Des i gn Wo rk and Lay out D r aw i ngs
T h i s op e rat i o n cons i s ts of t h e fo l l ow i ng e ng i nee r i ng work by
Des i gn gro u p personne l a s s i g ne d to ma k i ng d raw i ngs:
A.
Cre a t i on of New o r Re v i sed Cont ract End I tem Des i gn
Th i s i nc l u des t i me f or cre a t i ve th i nk i ng , a l l types of
des i gn i nve s t i gat i ons (s e a rch i ng I i t e rat u re and cata ­
l og ue s , i ns p e ct i ng s h op h a rdw a re o r mo c k u p s , etc. ) a l l
math emat i ca l ca l c u l at i ons , st re s s chec ks , and t h e mak i ng
of s ketches and l ayout d raw i ng s for new o r re v i s e d
(p ropos e d or f i rm) cont ract end i tem de s i g n.
B.
P re p a rat i on of P re- Propos a l and P rop os a l Draw i ngs
T h i s i nc l udes the p rep arat i on of a l l s u ch d raw i ngs for
new p roj e cts under t h e co gn i za nce of t h e P roj ect
Eng i neer.
C.
Deve l op me nt Work i n C i rcu i t S t u dy Room
T h i s i nc l udes de ve l op ment work by De s i gn g ro up personne l
as s i gne d to ma k i ng draw i ngs , w h e n s u ch deve l op ment
d i rect l y a s s i sts i n the des i g n and ma k i ng of s ketches ,
l ay outs, a nd funct i ona l s c hemat i cs for cont ra ct e nd
i t e m h a rd w a re .
D.
S p e c i a l Type D raw i ngs
Th i s i nc l u des the p re p a rat i o n of the fo l l ow i ng ty p e s of
p
d raw i n g s b y
I .
2.
3.
4.
5.
6.
7.
8.
Do s i q n q ro u p
p e rs o n n e l :
S pe c i f i c � t i on Con t ro l
Des i g n P ro c u re me n t
S o u rce Con t ro l
Des i gn
f�cq u i remo n t s
Co o rd i n a t i on
S o o c i f i c a t i on s
S c h e m at i c
M a i n t e n a n ce
and
Ca l i b ra t i o n P ro ce d u re s
Spec i f i cat i on
A n a l y s i :;
by Do s i a n 11 ro u p [) e r s o n n e l
d ra�1 i n qs
re q u i re d b e f o re t h o
typo
d ra w i n gs
i s
a s s i q n e d to m a k i n q
p re p n r a t i on
o f t hese
c h a rge d t o t h i s op e ra t i o n .
p r i ma r i l y
s uch
6 w h e n p e r fo rme d
a n a l y s i s wo r k m u s t b e c h a rge d t o O o e r a t i o n
b y pe rsonne l
soec i a l
Howe ve r ,
ass i gned to ana l y s i s
( n on- d ra f t i n g )
w o rk .
Ope ra t i on
3 - Now D r aw i n q s a n d C h a n ge s
T h i s o p e rat i on
p e rso n n e l
A.
con s i s ts o f
al I
o n g i noe r i n q wo r k b y
w h i l e [) e r f o rm i n q
the
f o l l ovl i n g :
P re p a ra t i on o f Co n t r a c t E n d
D ra w i n g s ,
Th i s
i n c l u de s
det a i I
d ra v1 i n q s ,
F i e l d S t a t i on e n d
B.
d r aw i n g s ,
a re
s u b s eq u e n t t o
Fo l l ow - Uo
CCR 1 s ,
d i agrams ,
End
te s t a n d
d raw i n g s ,
a l l
l i ne "
d raw i n g s ,
etc .
I t e m an d " Ab o ve t h e
initial
re l e a s e
L i ne"
cove re d b y A ,
D raw i n g s
a b o ve ,
f rom E n g i ne e r i n g ,
D r <M i n g Co r re c t i on s
c h ec k out
p i r i nq
wh i c h
b ut
a re
( see O p e r a t i o n s ) .
VI R' s ,
ECR ' s ,
DDR' s ,
DCH ' s , DC R E O ' s , an d A n y O t h e r T y p e o f Fo rma l
Req ue s t .
i n c l u de s a n y
d raw i n g s
L i n etl
i n s ta l l a t i on ,
d ra w i n g s ,
i n Con ne c t i on w i t h PAR' s ,
SE01 s ,
D ravl i n q C h a n ge
Th i s
�1 i r i n g
i n c l u de s c h a n ge s t o d r aw i n gs
n o t s y s te m f<ov i nw
C.
a s s e mb l i e s ,
re q u i reme n t
i t e m an d " a b ove t h e
C h a n ge s t o Con t ract
Th i s
a n d " A b ove t h e
I nc l u d i ng EO' s .
h an d l i n g a n d c h e c k o u t
p roce d u re
I te m ,
d e s i g n g ro u p
i n v e s t i g a t i on
f o r r ro p a ra t i o n o f
D.
Re v i e w
E.
P re o a r a t i on o f M�O ' s .
F.
P re r a rat i o n o f
req u i re d a n d t h e c h a n q i n g o f
EO' s .
a n d C h a n g e s t o S u b co n t r a c t o r P re p a re d F o r m a t
Des i (] n
S ke t c h e s ,
and
Do t ;:li I
D r aw i n gs .
D r aw i n g s M a d e
f or
P rotot y p e Prod uc t i on Pa rt s or
to
be Fa b r i c a t e d
is
L i a i so n
I I On l y )
( P ha s e
to ma n u f a c t u r i n g o r su bcon t ra c to r s hop s
i n t e r p ret d ra w i ng s ,
to a n s w e r te l e p h o n e
to d eterm i n e sou r c e s of ma n u f a c t u r i n g d i f f i c u l t i e s ,
f ac i
I
i nqu i r i es ,
a n d to
i ta t e a n d c a r r y out wo r k con n ected w i t h rej ect i o n s a n d
s a l va g e .
A l so
requ i red
i n c l u d ed
i n t h i s o p e ra t i o n
i s a n y s hop
of these
I i a i so n a ct i v i t i e s s ha l I
4, or 8.
O p e ra t i o n 4 does not
AI I
O p e ra t i on 2 o r 3 .
Suc h
as a resu l t
b e c ha rged to O p e r a t i on s
i nc l u d e
i n t h e s h o p w h i c h a r e f o r t h e p u r po s e o f
p ro d u c t i on d ra w i n g s .
O p e ra t i o n 5
l i a i son
i n c o n nect i o n w i th t h e c o n s t r u ct i on of moc ku p s .
d r a w i ng co r r ec t i o n s ma d e by D e s i g n g ro u p p e r so n n e l
3,
I te m s )
I i m i ted to e n g i n e e r i ng s e r v i ce s f u r n i s h e d b y
D e s i g n g rou p p e r s on n e l
to ex p l a i n or
( Co n t r a c t E n d
by Ma n u f a c t u r i n g .
Op e ra t i o n 4 - Des i q n G rou p S h op
T h i s o p e ra t i o n
E q u i pm e n t
2,
i n v e st i g a t i on s ma d e
comp l et i n g
l ayouts o r
i n v e s t i ga t i on s a r e c ha rg ea b l e t o
D e s i g n G rou p Moc ku p s
-
T h i s o p e r a t i on c o n s i s t s o f a l I
p e r so n n e l
e n g i n e e r i n g wor k b y Des i g n g ro u p
w h i l e d es i g n i ng p a r t s p e c u l i a r t o moc k u p s
t h e p re p a ra t i o n o f
l a you t s ,
d ra w i ng s ,
Re s ea rc h
&
r eq u i r e d
f o r moc ku p s exc l u s i ve l y ,
Deve l opme n t S u p po r t E n g i n e e r i n g O r d e r s )
t h e ma n u f ac t u re o f c o n t r a c t e n d
( i nc l u d i ng
J ob Wor k O r d e r s ,
and
a nd
that a re
wh i c h a r e n ot u sed
f or
i tem h a r d wa re .
O p e ra t i o n 6 - Des i g n G rou o Des i g n A n a l y s i s
T h i s o p e ra t i on c o n s i st s o f a l I
e n g i n e e r i n g wo r k b y D e s i g n g ro u p
p e r so n n e l
w h os e p r i ma r y a s s i g nm e n t
p e r f o rmed
b y d ra f t i n g p e r so n n e l
c rea t i on of
l a yo u t a n d d eta i I
o p e r a t i on ma y co n s i st o f ,
but
d ra w i n g s
i s not
A.
Des i g n Ana l ys i s
B.
Pe r f o rma n c e A n a l y s i s
C.
E l ec t r i ca l / E l ec t r o n i c A n a l y s i s
I .
wor k .
i s not
i n c l u d ed .
l i m i t ed to ,
A n a l y se s
i s the
Th i s
t h e f o l l ow i n g :
Loa d s - W i re s i z es
2.
C i rc u i t r y d ev e l opme n t
( i n c l u d i ng wo r k d o n e
i n the C i rc u i t
S t u d y Room )
3.
S y s tem ,
s u b s y stem comp o n e n t d e s i g n
D e s i g n c r i te r i a
4.
O p e ra t i o n 7
i s a n a l yt i ca l
w h o s e p r i ma r y a s s i g n me n t
-
Des i g n G ro u p - G e n e r a l
T h i s o p e ra t i o n co n s i s t s o f a l I
35
e n g i n e e r i ng n o n - d ra f t i n g wor k
( by Des i g n g ro u p p e rsonne l ) not cove red by O p e ra t i o ns I , 2 , 3 ,
4 , 5 , 6 , 8 , a nd 9 . Gene ra l l y , s u c h wo r k cons i s t s o f t h e
f o I l ow i ng :
A.
Te c h n i ca l g u i d a nce g i ve n to oth e rs by Gro u p E ng i neers , G ro u p
Leade rs, a nd t h e i r resp ect i v e a s s i sta nts
B.
P re p a r i ng EWO ' s , LWO ' s , ECP ' s , ETE ' s , a nd MC ' s
C.
Che c k i ng d ra w i ngs
D.
Meet i ngs a nd d i s c u s s i o ns w i t h vendo rs ( d oes not i nc l u d e s h op
I i a i son w i th s u b cont racto rs )
E.
P re p a ra t i o n o f est i mates
F.
S c h e d u l i ng wo rk
G.
Ass i s t a nce to S p ec i f i c a t i ons Se ct i on pe rso nne l - i nc l u d i ng
w r i t i ng s p ec i f i c at i ons or re po rts t h a t w i I I be p u b l i s h e d a s
s p e c i a l re p o rts .
Prep a ra t i o n o f s p e c i f i c at i o ns t h a t w i l I h a ve a d ra w i ng nu mber
s h a l I be c h a rged to Ope ra t i on 2 .
H.
As s i s t a nce to Pu b I i c a t i o ns p e r sonne l
I .
W r i t i ng o f manu a l s ( nonp roj ect )
J.
W r i t i ng of Comp a ny l e tters
K.
Pre p a rat i o n of tr i p re po rts
L.
Re v i ew o f emp l oyee s u ggest i ons
M.
Prepa rat i o n o f s p a re p a rts l i s ts
N.
A I I d e s i g n coo rd i na t i on w i th , a nd t r i p s to , ot h e r d e p a rtments
a nd d i v i s i o ns w h i c h a re do i ng e ng i neer i ng , except t h a t coo r­
d i na t i o n a nd tr i p s made f o r o b s e rv i ng tests s h a l I be cha rged
to Ope rat i o n 8 .
0.
A I I t r i p s to agenc i e s outs i d e t h e Comp a ny f o r p u rposes o f
obta i ni ng o r e x c h a ng i ng i nf o rma t i o n, coo rd i nat i ng p rog ra m
concepts a nd deta i I s , a nd deta i I d e s i g n coo rd i nat i on, except
t h at :
I .
T r i p s made to obse rve tests s h a l I be c h a rged to Op era t i on
8.
36
2.
T r i p s made to F i e l d S t a t i ons s h a l I be c h a rged to
Ope rat i o n 9 .
O p e ra t i o n 8 - De s i g n G ro u p - Des i g n Deve l o pme nt Te st i ng
Th i s ope ra t i o n cons i s t s o f a l I e ng i neer i ng wo r k b y Des i g n p e r son­
ne l w h e n p l a nn i ng des i g n deve l opment tests , d e s i g n i ng p a r t s o r
f i x t u res p ec u l i a r to tests ( i nc l u d i ng p repa rat i o n o f l a yo uts ,
d ra w i ng s , J o b Wo r k O r d e r s , a nd Resea rch a nd Deve l opment S u p p o rt
E ng i ne e r i ng Orders ) , d i rect i ng te sts , a na l y z i ng test r e s u l ts ,
a nd w r i t i ng test reports on a l I tests cond u cted w i t h i n t h e
Com p a ny , a t outs i d e agenc i e s , a nd a t F i e l d Stat i o ns . Wh i l e t h e s e
t e s t s a re p r i ma r i l y o f a deve l opmenta l na t u re th ey m a y i nc l u de
t h e fo I I ow i ng :
A.
S t ructu ra l Te s t i ng
B.
E nv i ronme nta l Te s t i ng
C.
Sys tem a nd S u b sy s tem Te s t i ng
D.
Tests to Deve l o p a New P roc ess , P rod uct , Method o r De s i g n
Ph i l oso p h y
Th i s ope ra t i on a l so i nc l udes t i me to o b se rve tests cond u cted
w i t h i n the Comp a ny a nd o u t s i d e a g e nc i e s , except fo r tests con­
d u cted a t F i e l d Stat i ons . A I I t i me to o b s e rve tests cond u c ted
at F i e l d Sta t i o ns m u s t be c h a rged to O p e ra t i o n 9 .
T i me to ma ke o r c h a nge cont ra c t e nd i tem d raw i ng s , rega rd l e s s of
w h e t h e r a d d i t i ona l p a rts h a ve been re l ea sed fo r te s t , m u s t be
c h a rged to O p e ra t i on 3 .
O p e ra t i o n 9 - De s i g n G roup - Pe rsonne l a t F i e l d Stat i o ns
Th i s ope ra t i o n cons i s t s of a l I eng i ne e r i ng wo r k by Des i g n g ro u p
pe rsonne l w h i l e at F i e l d Sta t i o ns , e i t h e r o n temp o ra ry d u ty < T OY )
o r p e rma ne nt a s s i g nment . A I I t ra ve l to a nd f rom t h e F i e l d
S t a t i ons s h a l I be c h a rged to th i s o p e ra t i on .
The second m a j o r s u bd i v i s i on i s t h a t o f t i me o r Ph a s e des i g na t i on:
Ph a s e Des i g na t i o ns
T h e typ i ca l weapon system deve l opment p rog ram i s t i me s u bd i v i d ed
i nto p a rt i cu l a r Phase des i g na t i ons as shown i n F i g u re 4 , page 38 .
The Proj ect De f i n i t i o n Phase " type" e f f o rt h a s l o ng been recog n i zed
37
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4
b y comp a n i es a s a neces s a ry pecu l i a r i ty a n d he nce i s usu a l l y g i ven
sep a ra t e recog n ·1 t ·1 on .
I
Fo r the com p a n y th i s sepa rat i on mea ns that
the e f fo rt i n the Proj ect De f i n i t i on Phase ( f ) shou l d not be i nc l uded
i n the eng i n ee r i ng l ea rn i ng cu rves and ( 2 ) i nc l udes a s s i gnme nt of
sepa rate eng i nee r i ng wo rk o rders .
When the deve l opment co nt ract i s
awa rded, then t h e re i s u s ua l l y a two o r th ree week per i od of 11th ras h i n g
a ro u n d " w h i ch h a s been des i g nated as Phase B .
Management has dete rm i n ed
that t h i s ef f o rt i s a l so not t r u l y rep resentat i ve of deve l opmen t en g i nee r i n g a n d hence shou l d be est i mated a n d cont ro l l ed on a sepa rate
bas i s .
The sepa rat i o n between Phase B a n d Phase I i s not a c l ea r-cut
po i nt i n t i me , b ut i nstead m u s t be h a n d l ed on a g roup b y g ro u p b as i s .
Spec i f i ca l l y, the fo l l ow i ng c r i te r i a a re em p l oyed by Est i mates and
Budgets -4 2 1 p e rsonne l as they m a ke the cont ro l paper t ra ns f e r :
I.
The sy stem pa ramete rs a re f i rm l y estab l i s hed a n d the des i gn
enve l ope i s f ro ze n ,
I t w i I I be noted i n Cha pte r y r t h a t th i s
i s one requ i rement to be accomp l i s hed d u r i ng the Proj ect
De f i n i t i o n Phase ; howeve r , i t ofte n h a p pe n s that th i s i s
ma i n l y a commu n i ca t i o ns sho rtcom i ng .
There a re cha nges and
p roposed cha nges b y both the custome r and the co nt racto r that
must be i nco rpo rated and the d i s s em i nat i o n of th i s i n fo rma t i o n
does not u s u a l l y occu r a t a po i n t i n t i me .
2.
An eng i nee r i ng sect i on l i st gene ra t i on b rea kdown i s f i rm l y
1
Ph i l i p Geddes i n a n i n terv i ew/ana l ys i s w i t h Maj o r Gen . W . Aust i n
Dav i s reports that he ( Dav i s ) ' b e l i eves that eve ry th i ng done i n a
p rog ram def i n i t i on p h a s o has to bo done a nyway . ' From " Prob l ems a n d
Prog res s - A M i l i t a ry V i ew, " Ae rospace Management, J u l y , 1 963 , p . 4 3 .
39
'
es tab l i s h e d ( see Chap te r I V ) ,
3.
The i n d i v i d u a l s e ct i on j ob n umbe rs a re estab l i s hed f o r a l I
en g i nee r i n g g roups p a rt i c i p at i n g .
4.
F i rm e s t i mates an d a p r i o r i ty s che d u l e ( depen de n ce o f j ob s )
h ave been p rep a re d .
5.
The deta i l e d man u f act u r i n g s c h e d u l e an d l ong- l ea d t i me i tems
a re de f i n e d .
6.
T h e ap p l i cat i on o f manp owe r can be e f f i c i e n t l y acce l e rate d
w i th def i n i te j ob s to pe rform.
Phase I cons i s ts of t h a t e f f o rt pe rfo rmed b y b oth De s i gn a n d
Non-Des i gn g ro u p s t o comp l e te t h e i n i t i a l re l ease o f p roducti on d raw i ngs
( En g i n ee r i n g D r aw i ngs Comp l ete - E DC > to man u f act u r i n g .
Ph ase I com-
p l et i on for an i n d i v i d u a l Des i gn g roup occ u rs when a l I d raw i n gs a re
comp l et e f o r each sect i on n umbe r. 1
Phase I I con s i s ts of th at e f fo rt w i th i n the Des i gn g roups s ubseq ue n t to E DC pe rf orme d on each d raw i n g s e ct i on n umbe r 1 an d w i th i n
Non-Des i gn g roups fo r a l I s u s t a i n i n g o r a d d i t i on a l an a l y t i ca l e n g i nee ri ng
req u i re d t o s up p o rt t h e f l i gh t tes t p rog ram.
The Ph ase des i gnat i on s are a t i me s u b d i v i s i on o f e f fo rt ,
T h eoret-
i ca l l y , en g i nee ri n g e f fo rt m i ght ce ase upon E DC o r soon a f te r.
The
a n a l ys i s wou l d be comp l ete an d the p roduct i on d raw i n g s w ou l d h ave gon e
to man u f actu r i n g ; t h e re wou l d be a l eve l o f e f fo rt for sh op l i a i so n .
The a ct u a l cas� h owe ve r , i s t h at app ro x i mate l y
e n g i nee r i n g e f fort occ u rs afte r EDC.
50
pe rcent of t h e
Th i s does n o t i nc l u de cus tome r
1 The e n g i nee r i n g s e c t i on n umbe r i s de f i n e d i n Ch ap te r I V , p .
40
44,
c h a n ges ,
s co p e
re v i s i on s o r n e w con t ra c t e f f o r t .
T h e q u e s t i on a r i ses
as t o w h y s u ch a
i n g e f f o rt o c c u rs a f te r t h e j o b
q ue s t i on o f p oo r
des i gn p ro b l e ms
i n iti al
j ob
l a rge p e rce n t age o f e n g i nee r-
de f i n i t i on ,
it a
p oo r e s t i mate s , a n d/o r u n u s u a l
f ac e d b y th i s o n e comp a n y ?
p rob l e m does n ot ap pe a r to be
Is
i s s up p ose d l y comp l ete .
A p p a re n t l y n ot ,
l i m i te d to one comp a n y b ut
s i n ce th i s
i s � u i te
w i des p re a d .
T h e s y mp toms o f t h i s b a s i c de f i c i e n cy a s dete rm i n e d b y t h e A i r
· Fo r ce a re :
"1.
A h i gh p e rce n t age o f
p re v i ous
d e s i gn
d e s i gn o ve rs i gh ts .
comp t ote d a rt i c l e u s u a l l y
ch a n g e s a re made t o co r re ct
F i e l d S ta t i on test i n g o f
re s u l te d
c on t r acto r ' s deve l op me n t r e s t i n g
i n an
i n c re as e
the
i n the
rath e r t h a n t h e an t i c i p ated
d e c re ase .
2.
I n a d d i t i on t o t h e h i gh r ate o f s y s te m des i gn
i n co mp at i ­
b i l i t i es
re ve a l e d b y s y s tem te s t i n g ,
h a s bee n
i n e f f i c i e n t l y u t i l i z e d o r i s me a n i n g l es s b e c a u se
t he o r i g i n a l
d e s i gn
t h e f·�·� d b a c k d a t a
i s now c h a n ge d s o as
to b e p r a c t i ca l l y
u n re co gn i z a b t e .
3.
Es sent i a l
m a de on
4.
re l i a b i l i ty con s i de rat i on s
an a f te r- t h e - f a ct b as i s ,
T h e u n i l ate r a l
des i gn
de l a y e d t h13
d raw i n gs a n d h e n ce h a s
re(j u i re d s y s tem/eq u i p me n t
s p e c i f i Ciii' i o n s . " I
i t ap p e a rs t h a t sorne d e g ree of
ca n be t rn o � d
d i f f i c u l ty
i n te g r a t i on .
i s e xp e r i e n ce d
man a geme nt a re a s o f
A w i de v a r i e ty o f a f te r-e f f e cts
h) ·rh e e n g i nee r i n g p ract i ces u s e d i n t h e s y s t e m d e s i gn
l l\ S u mma r
y of
A FSCr 3 7 5-2 ,
i n t e r f a ce
i n the techn i c a I
b y q u i te a n u mbe r of con t ract o r s
s y s t e m des i gn a n d des i g n
re l e a s e .
re l e a s e s b y d e s i g n g ro u p s con st i t u t e
t h e h i g h e s t pe r ce n ta ge o f tota l
He n ce ,
a re p re dom i n a te l y
i . e . , a f te r des i g n
J u ne
�a rne d
Lw; '; o_r
I ,
1 96 3 , p .
42 .
41
f ro m A i r Fo rce r.1an af]eme n t S u r ve y s ,
p ro ce s s d u r i ng P h a se
I .
Some a re ca u s e d by p ract i ces u s e d
i n the
d eta i l ed P h a s e
l
tota l
I n g e n e r a l , t h e q ua l i ty a n d depth o f a n a l yt i ca l
s ystem .
w h e re b y exces s i ve a noma l i e s a re i nt ro d u ce d
t h a t i s a f u n d amenta l
p a rt o f t h e h a rdwa r e e n d
not reach f r u i ta t i on u nt i l
we i I
the e q u i pme n t d e s i g n e r s e f f o rt
w h e n t h e h a r d w a re
P h a se
I I
i s p h y s i ca l l y
The
i nteg rated
i n to the tota l
, Ph a s e
I I
Fo r a
l a rge weapon s y s tem ,
i s of the utmost
i s e f f o rt p e r f o rmed a t s uc h p l aces a s Cape Ken n e dy ,
Pa c i f i c M i s s i l e Ra nge , et c . , a n d i s 28 pe rce nt of t h e
e f f o rt . 1
Th i s
m i s s i l e a re t e s te d .
: c i zed a n d u n d o u b ted l y
i s w h e re va r i o u s c on f i g u rat i o n s of the tact i c a l
S i n ce th i s
i s the " p roof of t h e p u d d i ng , " p u b l i -
i m po rta n t to both t h e cont ra cto r a n d the c u s tome r ,
t h e f l i g ht test p rogram a n d s c h e d u l e a re d e f i ned
, S u c h t h i n g s a s t h e n um be r o f f l i g h t s ,
i n cons i de ra b l e deta i l .
r a n ge , d u ra t i o n ,
i n st r umentat i on , c h e c kout p roce d u res a n d pe rson ne l
. we l l
s y s tem .
i s not a comp l ete l y vo i d
the con t racto r ' s f i e l d s tat i on f l i g h t test p rog ram
· Wh i te Sand s ,
l i m i te d s co p e of
i s g ra p h i ca l l y revea l e d , b e l ated l y ,
e n g i n e e r i ng e f f o rt , howeve r ,
Th i s
work
i tem d e s i g n p roces s does
i nto P h a s e I l .
a re a w h e re t h e re a re no d e f i na b l e t a s k s .
i m po rta nce .
i n to t h e
s pec i f i c goa l s ,
d u t i es a re u s ua l l y
d ef i n i t i ze d .
T h e p rev i ou s l y men t i o n e d f u nct i on of s hop o r e n g i ne e r i n g
i s j us t a bo u t 24 p e rcen t o f t h e P h a s e
I I
e f f o rt .
l i a i so n
The h i s tor i ca l
actua l s
s u p p o rt s u c h a pos i t i ve statement a n d a s u c c i nct comment s h o u l d c l a r i f y .
By t h e t i me t h e p rod u ct i o n d ra w i n g s h a ve b e e n re l eased to man u f ac t u r i ng ,
Do u q l a s A i r c r a f t Com p a n y o n q i ne e r i nq h i sto r i ca l
data .
The per­
c e n t a g e f i g u res q uote d a re aga i n a n a v e rage o f m a n y cont racts a n d , a s
s uc h , s ho u l d b e u s e d o n l y a s a g u i de .
42
l
r
r
the j ob i s s t r i ct l y rep et i t i o us .
The re i s s e l dom an a d v a n ce i n the
state-o f-the- a rt at th i s p o i nt , a l t hough t h e system may be e xt reme l y
a d vance d .
N at u ra l l y , t h e re a re p rob l ems fo r t h e l i a i son en g i nee rs ,
b u t t he i r p rob l e ms a re t h e s ame n o matt e r w h at the s y s te m i s
i n te rp ret i n g d raw i n gs , s a l v age a n d mate r i a l d i s pos a l an d t h e con t i n u a l
q u i ck f i xe s t h at a re req u i re d .
I t mus t be reme mbe re d t h at t h e d i s-
c u s s i on does not i n c l u d e man u f a ct u r i n g costs wh i ch may or may not v a ry
i n d i rect p rop o rt i on to system comp l e x i ty .
I t may b e a rg ue d t h at an
e xt reme p rod u c t i on rate o r a mu l t i t u de of e n d i te ms wou l d req u i re
i n c re as e d l i a i son e f f ort .
T h i s w ou l d un doubte d l y be t h e case j h oweve r ,
w i th t h i s i n c re as e d rate o r n umbe r of e n d i tems t h e re wou l d u s u a l l y
be a cor re s p on d i n g i n c re as e i n the f l i gh t test p rogram req u i rement s ,
' i n- house con t ract o r s upp ort an d any changes an d corre ct i on s so t h at
t h e 2 4 p e rce n t wou l d rem a i n re l at i ve l y cons t an t .
Anoth e r d i s t i n ct ( 2 1 p e rcen t ) Ph ase I I e f fort i s t h at o f t h e
' cont ra ctor s up port of the f l i gh t tes t p rog ram.
of th i s p rog ram i s data .
T h e p ri mary p ro d u c t
Be f ore th i s wea l th of n e w data - comp ute r
t apes . i n s t ru me n t a n d te l emet ry rat i ng s , f i l ms , etc . - i s of an y va l ue ,
i t must b e ret u rn e d t o t h e cont racto rs f ac i I i ty fo r p roce ss i n g .
The
f i e l d s t at i on s a re not u s ua l l y eq u i ppe d t o h an d l e t h i s maj o r e f fo rt
an d, i n a d d i t i on , t he majo r i ty of i t i s comp ute r i ze d fo r e ase o f
hand l i ng.
A n e xt reme l y s i mp l i f i e d e xamp l e m i g h t h e l p c l a r i f y .
The
f i rst m i s s i l e f l i gh t i s a p art i a l s u cce s s ; h owe ve r , te l emet ry t apes
' h a ve l oc ated s t ra i n g age a t ten u at i on an d e l ect romagnet i c i nt e r f e r re n ce .
T h e i n-house pe rsonne l must f i rs t red u ce the data , e va l u ate i t an d
43
':
·,
p roduce a rev i se d data acq u i s i t i on p rog ram i n t i me f o r the second
f l i ght .
T h i s i nvo l ves a g reat many peop l e i n p rog ramm i ng , comp ute r
eng i neer i ng a n d d a ta e n g i n e e r i ng .
A p p rox i mate l y s even p e rcent of Ph a s e
p rog ram ma n a g ement type e f fort .
I
I i s cont i n u i ng e n g i nee r i ng
T h i s i nc l u d e s t h e d i rect e f f o rt o f
eng i nee r i n g organ i za t i on s o r i de nt i f i ab l e pe rson n e l w i th a n organ i za t i on
who a re c h a rg e d w i th the res pons i b i l i ty of def i n i ng , p l a n n i n g a n d i n teg rat i ng the ove ra l I system req u i rements .
S pec i f i ca l l y , th i s enta i I s
( I ) cont i n ua l l y red e f i n i ng bas i c p rog ram tasks a n d o pt i m i z i ng d es i gn
pa ramete rs , ( 2 ) mon i to r i ng a n d i mp l ement i n g noneng i nee r i ng p rog ram
req u i rements as re l ated to man u f actu r i ng , re l i a b i I i ty , l og i s t i cs , etc . ,
and
(3)
estab l i sh i ng a n d a s su r i ng comp l i a nce o f system p e r f o rmance
req u i rements b y p rov i d i ng tech n i ca l d i rect i o n , both i n -house a n d w i th
major s u bcontractors , a n d p ro p e r i nterp retat i on of these req u i rements .
T h e rema i n i n g 20 p e rcent of Ph ase I I ( 1 0 pe rcent o f the tota l p rog ram )
e f f o rt i s d e s i g n c h a nges , correct i o n s , retest i ng , etc .
D u r i ng Ph a s e I Des i gn g ro u p p e rson n e l ch a rg e to t h e sect i on l i s t
n umbe r a n d sa l es o rd e r f o r the p a rt i cu l a r e f f o rt a s s hown i n Appen d i x
·
B.
Non -Des i g n g rou ps e s t i mate a n d c h a rg e to the u n i q u e job n u m b e r f o r
each d ef i na b l e t a s k .
Du r i ng P h a s e
I I ,
a n e n g i neer i ng work order i s re l eased f o r each
j ob ove r 2 5 hou r s for a d es i g n c h a nge .
H e re both Des i g n a n d Non-De s i g n
p er son ne l c h a rg e to t h e j ob b ecau s e i t i s now the cost o f the
cha nge t h a t i s i m po rtant .
The fo l l ow i ng c h a p te r w i I I exam i n e t h e f i rs t PE RT/Co s t requ i reme n t
44
as i t affe ct s e ng i nee r i ng de f i ni t i on.
The cus tomer and t h e co n-
t racto r a re g re a t l y conce rne d w i t h de ta i l e d end i t em cont ro l d u r i ng
P h a se I; t h e S e ct i on Inde x conce p t h a s been deve l op e d on t h i s p re m i se .
45
CHAPT E R I V
THE S ECT I ON
W h e n PERT/Cos t
I NDEX CON CEPT
i s a con t ractua l o b l i g at i on ,
i t r a i s es a s i n g u -
l a r l y i mpo rt a n t q u es t i on - t h a t of h a rdwa re ve rs u s f u n c t i on a l
a c co u nt a b i l i ty .
g ro u p
O n e of t h e p r i nc i p l e p ro d ucts of t h e P roj ect Def i -
n l t l on P h a s e i s :
" T h e w o r k b rea kdow n s t ruct u re f o r t h e Phase I I
d e ve l opment a s a who l e ( o r i ented to ha rdwa re e n d i tem
ra t h e r t h a n to f u nct i on ) ; t h e statemen t of w o r k i n t h e
p ropos a l a n d t h e r e s u l t i n g a u thor i z i ng d ocument w i I I
be i tem i z e d i n a c co r d a n c e w i th the w o r k- b rea kdown
st ructu re . " !
T h e re a re a n umbe r of d ef i n i t i on a n d est i ma t i ng p ro b l em s as soc i ·
a te d w i th th i s req u i rement w h i c h , s u cc i n t l y state d ,
i s t h a t m a n u f ac-
. t u r i ng does not n e c e s sa r i l y b u i l d the p rod uct i n t h e s ame ma n n e r i n
w h i ch e n g i nee r i n g d raws
neces s a ry .
i t a n d h e n c e two accou n t a b i l i ty s ystems a p p e a r
T h e r e f o re , cont ra cto r comp l i a nce i s a m a j o r p ro b l em f o r
t h e i n d u s t ry :
" I na b i l i ty to d ete rm i ne exact e n d i tem h a rdwa re con­
f i g u ra t i on f rom tech n i ca l document a t i on at t i me of
d e l i ve ry . " 2
I
De p a rtment of De f e n s e D i rect i ve , P roj ect De f i n i t i on Ph a s e ,
N um b e r 3 2 0 0 . 9 , Feb ru a ry 26 , 1 96 4 ;lJRt9q u i rement N o . 3] .
2
A S umma ry of
Les so n s Lea r n ed f rom A i r Fo rce Ma n ageme n t S u rvey s ,
AFSCP 3 7 5 -2 , J un e I ,
1 96 3 , p .
I I .
46
" E n g i nee r i n g des i gn re l e ases an d d raw i n g con t ro l
p ract i ce s i n adeq u a te for i n teg rate d sy stem de s i g n . " '
" E n g i nee r i n g re l e ase fo r a g i ven des i gn def i c i e n cy ,
doe s not p a ckage an d un i q ue l y i de nt i fy tot a l ch ange
to a l l a f fecte d eq u i p ment/ s p a res/p roce d u res . " 2
The Sect i on I n dex con ce p t h as been deve l op e d by one comp any
i n re spon s e to th i s req u i re ment .
S i n ce i t i n vo l ve s a l l d i rect
pe rs on n e l on a p roj e ct , some ad d i t i on a l comments a re i n o rde r .
I t i s f i rs t neces s a ry to de f i ne a n eng i nee r i n g sect i on n umbe r.
A fo u r- d i g i t e n g i n ee r i n g sect i on n umbe r appe ars on a l I p ro d u ct i on
d raw i n g s a n d wh i ch i s estab l i s h e d by the var i o us Des i gn g roup s .
Th i s
rep resents a seq ue n ce of assemb l y of one d raw i n g upon anothe r w i thout
reg a rd to the w ay i n wh i ch the p a rts a re man u f act u re d , b u t i n acco rance w i th w h at i n en g i n ee r i n g i s ca l l ed a gene rat i on b reakdow n as
s hown i n F i g u re 5 , p a ge 4 8 .
I n ot he r words , eng i nee ri n g sta rts w i th
a top d raw i n g f o r a h a rdw a re e n d i tem wh i ch s u b d i v i des i n to s ubassemb l i es wh i ch ag a i n s u b down i nto f u rthe r s ub d i v i s i on s and down
to the comp onen t or modu l e l e ve l .
The e n g i nee r i n g sect i on n umbe r does
not ap pe a r i n the comp any ten - d i g i t s a l es o rde r system.
E n g i nee r i n g sect i on n umbe rs a re made for the p a rt i c u l a r d i sc i p l i n e i n vo l ved ; the re i s s t ruct u ra l type work a n d f u n ct i on a l type
wo rk .
I n ma ny cases the f u n c t i on a l type as semb l i es h ave the i r own
d raw i n g s t r u ctu re assemb l e d on to the e n d i tem at a ve ry h i gh l eve l .
Howeve r, i n a ny g i ven case f o r examp l e , the e l e c t r i ca l f u n ct i on may
assemb l e on to a l owe r o rde r of s t ruct u re .
1� , p . 1 3 .
2 1 b l d , p . 1 3.
47
W i t h i n the d ra f t i n g man u a l
r
'
NOME N C L ATU R E
D E SIGN
MODEL
R E SP O N S.
NU M B E R
S E CT
NO.
PART
N UM B E R
G E N E R A TI O N NUMB E R S
J
2
3
4
5
6
7
8
9
10 1 1
12
1 3 14
15
E F F E CT I V I T Y
SH O P O R D E R
A
OJ
- �
-- ·-t-·-'-
-
I SSU E D
REVISED
1
2
3
4
s
6
1
8
9
F I GURE 5
10 1 1 1 2
13
14
15
�.
-,
I
'
bou n da r i es , a n i n d i v i d ua l Des i g n g roup h as a l most autonomo us con tro l
ove r i ts d raw i n g b reakdown .
T ra d i t i on a l l y , the en g i nee r i n g sect i on n umbe rs a re es tab l i s he d
w i th re ga rd to the way i n wh i ch the d raw i n gs a re made by ea ch of the
des i gn sect i on s .
I t i s then p oss i b l e to organ i za t i on a l l y l ook at the
sect i on n umbe r and e as i l y dete rm i ne w h at g roup i s re spon s i b l e for
wh i ch d raw i n g .
The mas te r i n dex ( M I ) n umbe r i s a me a n s of co l l ect i n g cos ts a n d
o f s ch e d u l i n g w o rk w i th i n the man u f actu r i n g s h op as semb l y f u n ct i on .
The M l i s n ot ap p l i cab l e to de ta i l ed f a b r i cat i on wo rk .
I t rep resents
the seq ue n t i a l w ay i n wh i ch p a rts a re assemb l e d f rom a ce rt a i n l e ve l
of as semb l y on up to the top of a g i ve n en d i tem.
The M l n u mbe r i s
the l as t two d i g i ts o f the te n - d i g i t s h op orde r , howe ve r ; i t s h ou l d
be n ote d th·at the re may be s u b as s e mb l i es app l i cab l e be l ow the M l
l e ve l .
As stated i n the req u i rement , PERT/Cos t req u i res the estab l i s hment of un i t of me as u re wh i ch , i n e s s e n ce , w i I I f o l l ow f rom e n g i nea r i n g th rough te s t i n g to p l an n i n g , too l i n g an d man u f a ct u r i n g i n
te rms of a stan d a rd work p ack age .
Th i s i s a d i f f i c u l t req u i reme n t
beca use the way i n wh i ch en g i nee r i n g sect i on n u mbe rs a re ass i g ned
and M l ' s a re ass i gne d .
They do not n e ces s a r i l y match ; the e n g i -
nea r i n g sect i on n umbe r may , i n s ome cases , mat ch the M l p r i ma r i l y
beca use of the s t ructu ra l con s i de rat i on .
Th at i s to s ay , i f a m i s-
s i l e d i v i de s i nto two p h ys i ca l sec t i on s , the re wou l d p robab l y be a
top d raw i n g for e ach of these an d th i s wou l d p rob ab l y be the way i n
49
which t h e p a rt was as semb l e d in t h e s hop .
B u t th is is on l y p a rt of
the situation ; ge ne ra l l y s p e a king, in the f unctiona l a re a engineering
does n ot n e ce s s a ri l y attempt to as semb l e e l ect ric a l wiring ont o the
vario u s s truct ura l s u b divisions in t h e w ay man u f act u ring b u i I d s p a rts.
There is an other con sideration in t h a t Ml 1 s are assign e d as a
s ch e d u l e me d ium.
This is des irab l e f rom t h e man u f a ct u rin g s t andp oint ,
b ut may no t be desirab l e f rom the PERT/Co s t s t andp oint .
For e x amp l e ,
M l 1 s a re assig n e d t h a t t a ke a given p ortion o f the struct ure , s uch
as a tan k as semb l y , out of its j ig and ove r to a test s t and, fi I l ing
it a n d t h e n tes ting it for p re s s u re .
This is
a
seq uen tia l step in
manu f a ctu ring operation s an d may re p resent a th ree wee k d u ration and
fi fteen-man e f fort .
The impos ition o f PE RT/Cos t re q uires th at t h e s e two s y s tems b e
b rou g h t t oget h e r i n orde r t o h ave on e sta nd a rd unit f ro m initia l
en gineering design t h rough t h e e n d of man u f a ct u ring .
T h is can be
done b ut it doe s invo l ve a n u mber of comp romise s ; but b e f ore e x amining the p l us an d min us con ditio n s f or the vario u s dep art me nt s , it
is des irab l e to detai I some o f the steps t h a t wo u l d h a ve to be t a ke n
i n order t o ma ke i t work .
First of a l I , some o rg aniz a tiona l ch a nges wo u l d be nece s s a ry .
Th e re v/o u l d h a ve to be a l ine de p a rtme nt estab l is h e d or at l e ast a
s t a f f committee o f rep re s ent a tives f rom manu f a ct u ring , too l in g , a nd
e ngin eerin g workin g toget h e r f rom p rogram in ce p tion .
I t wou l d be
th eir re sp onsibi l ity to determine w h at t h e man u f ac t u ring s e q u e n ce
wou l d be an d h ow f a r enginee ring is going to go in rep resen ting t h a t
'J O
man u f act u r i n g seq uen ce i n t h e e n g i nee r i n g d raw i n gs .
T h i s o rg a n i za t i on
must b e estab l i s h e d at l east b y the o u tset of the P roj e c t De f i n i t i on
Ph ase an d cont i n ue we i I i n to t he p roduct i on p rog ram.
T h e pe rs on n e l
must be e xcep t i on a l l y q u a l i f i e d w i th a tho rou g h k now l e dge o f t h e
v a r i ous syste ms an d ab l e t o i nte g rate a l I p os s i b l e rami f i c at i on s .
The i r cont i n ua l p rob l em wou l d b e t o e s t a b l i s h the man u f act u r i n g p rod u ct i on rate an d p os s i b l y to e s tab l i sh t h e deg ree o f b re a k down i n t h e
s u b as semb l i e s .
T h i s wou l d req u i re e ng i n ee r i n g to make new d raw i n gs
w h i ch i s us u a l l y res i s te d because o f t h e a d d i t i on a l e xpense .
T h e re-
fore D t h i s o rg a n i zat i on must cont i n u a l l y j u d ge t h e man u f act u r i n g
s av i n g i n be i n g ab l e t o b re a k down t h e assemb l i e s f u rt h e r as opp osed
to t he cost fo r d raw i n gs to match these s u b as semb l i e s .
The Pe rce n tage o f A p p l i cab l e E n g i nee r i n g E f fort
The app l i cab l e e n g i nee r i n g e f fort wou l d b e l i m i te d t o Ph ase I ,
Des i g n g roup Ope ra t i ons I , 2 , 3 , a n d
6.
T h e q uest r on a r i ses as to
w h at p e rcentage t h i s i s of the tot a l d i rect e n g i n ee r i n g e f f o rt for
a s ta n d a rd weapon system deve l op me n t p rog ram.
pe rcent b as e d on h i sto r i ca l an a l ys i s . '
I t app ro x i mates twenty
A f i rst re act i on i s t h at the
req u i re d e f f o rt a p p e a rs e xces s i ve for h a v i n g on l y twenty p e rce n t of
e ng i nee r i n g a b l e to recogn i ze the s ame h a rdw a re s ub d i v i s i ons as
man u f ac tu r i n g .
The re a re two s c h oo l s o f t h ou g h t o n t h e s u bj e c t ,
O n e g ro u p s ay s
th i s i s not wo rth wh i l e a n d e n g i nee r i n g shou l d b e a l l owe d fo r PE RT/
Cos t p u rp oses to e stab l i s h t he i r ow n w o rk p ackages ( sect i on n umbe r )
l ooug l as A i rc raft Comp any e n g i nee r i n g h i s t o r i ca l d at a .
51
a n d ma n u f a ctu r i n g s hou l d ma i n ta i n the M l ' s a n d not attempt to comb i n e
the two .
I t i s conce i vab l e that the two can be re l ated i n some very
ro ugh f a s h i on on a PERT netwo rk but st i I I not c o r re l ate them for cost
co nt ro l o r dow n to a common ha rdware s u b d i v i s i on .
P rogram o f f i c e
ma nageme nt a n d the c u s tome r , howeve r , h ave a good reason to be l i eve
that i t i s b ette r to co l f eet a n d co n t ro l some of the eng i nee r i n g e f f o rt
and c o r re l ate i t to ma n u f a ctu r i n g t h a n none at a l I .
The s i g n i f i c ant
po i nt i s t h a t wh i l e co l l ect i n g a sma l I port i o n of the ma n u f a ct u r i ngas soc i ated eng i nee r i ng costs ( w i thout deg rad i ng the e f f orts of the
rest of eng i nee r i ng ) , i t i s w h at i s con s i d e red by ma ny to b e the p r i me
cost of eng i nee r i ng .
Re ga rd l e ss of what e l s e t h e rest of t h e eng i ne-
e r i ng depa rtme nt does , the mo st i mp o rt a n t p ro d u ct i s the ha rdwa re
en d - i tem .
To get that p i ece of ha rdwa re f i n i s hed a n d to the c u s tome r
req u i res gett i n g out the e n g i n ee r i n g d raw i ng s a n d con t ro l I i n g them
t h rough p l a n n i ng , too l i n g a n d ma n u f act u r i n g .
The twenty percent u n der
d i s c u s s i o n i s p r i ma r i l y the e f f o rt re q u i red to p rod uce d raw i ng s and
the adva ntage i s the co l J ect i o n of costs i n te rms of common denom i nato r - the p ro d u ct that i s p ro d u ced at the e n d of the I i ne .
Leve l of B rea kdow n
A major u n sett l e d po i nt revo l ves a rou n d how l ow a b rea kdow n to a r r i ve
at a n e nd i tem .
I f t h e re i s an eng i nee r i ng sect i on n umbe r I i st w i t h a
top d raw i ng a t l eve l one a n d two d raw i ngs a t l eve l two , there wou l d b e
th ree s u b - d raw i n gs at l eve l th ree .
Two o f these wou l d be p r i ma r i l y
s t r u ctu ra l d raw i ng s , for examp l e , the g u i d a nce s ect i on of the m i ss i l e .
The th i rd d raw i ng m i g h t bo a n i ns ta l l at i on d raw i n g for a l I e l ect r i c a l
52
r
a p p a ratus on t h at g u i d a n ce i n s ta l l at i on .
I n othe r wo rds , i n
fo l l ow i n g th ro ugh on th i s app l i cat i on , the p rob l em be comes one of
how l ow i n the b re a k down do the f u n ct i o n a l p a rts as semb l e on to the
s t ructu ra l membe rs ; the p re ce d i n g examp l e goes down to w h at i s con ­
s i de re d t o be t h e mi n i mum b reak down - a n e l e ct r i ca l i n s ta l l a t i on
d raw i n g .
He n ce , a l l e l e ct r i ca l ap p a ra tus wo u l d then be as semb l e d
onto t h i s one e l ect r i ca l d raw i n g f o r the g u i dance sect i on .
P res u mab l y th i s wou l d be s at i s f a cto ry as f a r as man u f a ct u r i n g
w a s con ce rne d ; h oweve r , the re wou l d u n doubte d l y be management p e rson ne l
i n p l an n i n g w ho wou l d con ten d t h a t i n orde r to make the s y s te m work ,
t h ey wou l d p re f e r n ot to h ave t h i s th i rd- l e ve l e l ec t r i ca l i ns ta l l at i on
d raw i ng .
They wo u l d rathe r t ake a l I t he det a i l ed p a rts assemb l e d
onto t h i s e l ect r i ca l i n st a l l at i on d raw i n g a n d assemb l e them onto the
st ru ct u re at the fou rth , f i fth , a n d s i xth l e ve l s of b re a k down so
the re wou l d be n o d raw i n g t h at ca l l s out an e l e ct r i ca l i n st a l l at i on
as s u c h .
I f t h i s we re app l i e d to the l owes t pos s i b l e l eve l , i t wou l d
mean th at i n the d raw i ng s t r u ct u re th e re wou l d no l on ge r be a d raw i n g
wh i c h gave the who l e s chemat i c of , f o r examp l e , the hy d rau l i c s y stem.
A p os s i b l e so l ut i on wou l d be to h ave the f u n ct i on a l d raw i n g s
assemb l e d at t h e l owes t pos s i b l e l e ve l , then p re p a re d u mmy d ravt i n gs
a t i nte rme d i ate l e ve l s .
for re fe re n ce on l y .
They wou l d n ot b u i l d any p a rts a n d wo u l d be
They wo u l d as semb l e o nto the top d raw i n g s of the
end i tem and wou l d me re l y s tate t h at , ' t h i s d r aw i ng rep resents a
s ch e mat i c of the w h o l e e l ect r i ca l sy stem o r the who l e hyd rau l i c
s y s tem, etc.
1
53
I
The f a rthe r down the f u n ct i o n as semb l e s onto the st ru ct u re , the
g re ate r the p rob l e m i n co r re l a t i n g man u f act u r i ng an d en g i nee r i n g .
Fo r
examp l e , as soon as man u f actu r i n g ch anges an e i ghth l e ve l s u b assemb l y
and a l l the f u n ct i on a l p a rt s h app en to be assemb l e d at that l eve l , i t
wou l d req u i re a maj or re d raw i n g e f f o rt .
Anothe r s u gge s t i on i n vo l ve s the uses of a comp ute r i ze d t ran s l a­
t i on t a b l e t h a t wou l d e l ect ron i ca l l y sort e x i s t i n g M l ' s an d s e ct i o n
n umbe rs i n to p re dete rmi n e d s ub s y s tems that wou l d be con tro l l e d as an
e n d i tem.
T h i s l acks the i n g re d i ent of authent i c i ty f o r accoun tab i l i ty
because the re wou l d st i I I not be a d raw i n g t h at re p rese n ts a g i ve n
Th i s system, i n
s u b assemb l y f o r bot h man u f act u r i n g an d eng i nee r i n g .
essence , estab l i s hes a p s e u do e n d i te m for the custome r ' s b e ne f i t a n d
noth i n g mo re .
St i I I anot h e r q uest i on i s the i mp o rtan ce o f the M l b re a k down .
The M l
i tse l f i s not a ve ry deta i l e d s u b d i v i s i o n an d wh i l e the re may
be between 50 a n d 1 0 0 M l ' s for t h e m i s s i l e , the ge ne rat i o n b re a k down s
a re se l dom be l ow the fou rth o r f i fth l eve l .
go dow n to the i n d i v i du a l M l
I f i t was de c i ded not to
l eve l b u t rathe r to some g ro up i n gs of
M l ' s at the secon d o r th i rd l e ve l , then th i s m i ght be con ce i vab l e at
p rogram i n cep t i on .
Howeve r , wh i l e the PERT /Cost netwo rks an d re po rts
wou l d on l y be i n te rms of the s e con d or th i rd l eve l
be n e cess a ry to de f i ne the fou rth an d f i fth l eve l
P
P
i t wou l d s t i I I
etc. , i n o rde r to
be ab l e to accu rate l y sum f rom the l owest l e ve l to the seco n d or th i rd .
Ad van tages a n d D i s a dvan tages
S i n ce the d i s cu s s i on i s p r i ma r i l y con ce rned w i t h e n g i n ee r i n g an d
54
r
man u f actu r i ng � i t i s neces s a ry to e n n ume rate the p l uses a n d m i n uses
for e ach dep a rt me n t .
I n t h e case o f man u f act u r i n g , o n t h e negat i ve
s i de wou l d be t h e l os s o f the p resent M l s ub d i v i s i on h i sto r i ca l d a ta .
I t i s not a comp l ete l o s s ; to the exten t th at the M l rep resents a
s ub - as semb l y the re wo u l d not be a Sect i on I n dex n umbe r for t h at s u b ­
assemb l y .
T o t he extent that i t rep resents a man uf act u ri n g op e rat i on ,
i t wou l d be l os t .
I n ot he r words , th e re wou l d b e n o e n g i neer i n g
d raw i n g o r Sect i on I n dex n u mbe r f o r p a i n t i n g a m i s s i l e or check i n g out
a m i s s i l e i n a ce rta i n e n v i ron ment .
Th i s i s us u a l l y n ot con s i de re d
t o b e a g re at l os s , the l oss be i n g p r i ma r i l y i n te rms of cos t ret r i e­
va l .
The re wou l d be n o l os s i n te rms of s c h e d u l e cont ro l because
u n de r the Sect i on I n dex n u mbe r co n cept i t wo u l d be neces s a ry to h ave
a me an s of be i n g ab l e to s ub d i v i de the s u b assemb l y i nto ce rta i n s u b­
d i v i s i on s f o r s c h e d u l e p u rp oses on l y b u t n ot for cos t co l l ect i o n .
It
i s the re f o re i mport a n t t o h ave f l ex i b i l i ty i n the schedu l e system i n
orde r n ot to l o se the ab i l i ty to sche d u l e the seq ue n ce o f these
man u f a ct u r i ng ope rat i on s .
The maj o r advantage f o r man u f act u r i n g i s t h at th e re wou I d n m1 be
a un i q ue e n g i nee r i n g draw i ng re p resen t i n g the s ub assemb l y for use by
p l an n i n g .
Whene ve r des i g n c h a n ges we re made at a l ate r date , i t wou l d be
a g re at de a l e as i e r to p l an an d co nt ro l t hem because they wou l d cor­
re l a te exact l y w i th the i n d i v i d u a l s u b assemb l i es th at e x i st i n the
s h op .
On the m i n u s s i de for eng i nee r i n g i s the cos t f o r more d raw i n gs
55
to be made .
How many mo re d raw i n g s w o u l d depe n d on t h e comp l e x i ty
of m i s s i l e .
V a r i o us s t ud i es I
n e i g h b o rhood o f
h a ve i n d i c at e d t h at somew h e re
f i f ty ad d i t i on a l
d raw i n g s w ou l d h a ve t o be p re p a re d .
These f i fty d raw i n gs w ou l d p r i ma r i l y b e p i ctu re d raw i n gs ,
t y p e d raw i n gs ,
5 , 000
of t h e t ot a l
con t ro l .
hou rs .
cost an d n ot
T he re
as semb l y
a n d e ve n p os s i b l y t ab u l a r d raw i n g s w i t h pe rspect i ve
i n f o rmat i on on t he f ace o f t he d ravl i n g .
ap p ro x i mate
i n the
T h e d raw i n g cos t wou l d
T h i s i s not con s i de re d to b e g re at
i n te rms
i n te rms of w h at can be g a i n e d i n man age me n t
i s a l so a n o f fset to t h i s
i n t h at p l an n i n g a n d man u -
f a ct u r i n g wou l d b e ab l e t o re d u ce the a dm i n i s t ra t i ve f l ow t i me an d ,
h e n ce , move t h e p rod u ct f aste r .
Anot h e r d i s a d va n t age to e n g i nee r i ng
i s n ot h av i n g comp l ete f ree-
dom i n the d raw i n g s t r u ct u re gene rat i on b re a k dow n .
Howeve r , t h i s may
b e o f f s e t b y h av i n g e n g i nee r i n g , p l an n i n g , too l i n g , e tc . , w o rk i n g
c l os e r toge t h e r to e s t ab l i s h an d ma i n t a i n a s y stem t h at b e n e f i ts t h e
comp any an d th e p rog ram ove ra l l .
I t wou l d b e an a d v a n t a ge t o t he e n g i n ee r i n g p roce d u ra l
p ri ma r i l y b e ca us e f rom the d ra f t i ng p ract i ce s t a n dp o i n t
s u re t h at w h e n d raw i n g c h a n ge s w e re made ,
a re as
i t wou l d
i n-
the des i gn e r h as con s i de re d
a l I o f t h e p a rt s t h at co u l d b e a f f e c te d b y t h e ch a n ge .
T h e s y stem may b e both a n a d va n t age an d d i s ad va n t age f o r a des i gn
g roup :
I n
i nitial
des i gn t h e re wou l d be n o top d raw i n g i n t h e d raw i n g
1
on one m i s s i l e s tu d y , ove r 3 , 000 d raw i n gs we re p u l l e d f ro m f i l e
an d e xa m i n e d i n de t a i I .
S ub as semb l i e s we re re a r ra n ge d an d ren u mb e re d
a n d two a d d i t i on a l
l e ve l s wo re a s s l qno d .
Tho ch l n f d ra f t s m�n t h e n
est i mate d t h o a p p rox i mate n umbe r an d cos t o f t h e a d d i t i on a l
56
d raw i n gs .
,...-....-
l. .
,
:.
structu re that wou l d p roc l a i m that th i s was the e l ectron i c s g roup
con t r i b u t i on .
They conte n d that they l ose cont ro l beca u se i n th e i r
own g roup they a re not a b l e to h a ve th e i r own s u b d raw i ng schedu l e by
s u bg roup .
I t wou l d be an advantage d u r i n g s u s ta i n i ng eng i n ee r i n g when
the majo r i ty of e f fort i s conce rned w i t h c h a n ges i n the ha rdwa re a nd
i s u s u a l l y pe rfo rmed o n a s u b s ystem ba s i s .
PE RT/Cost Re qu i remen t s
Another q u est i o n t h a t h i nges o n t h e l eve l determ i nat i o n i s w h et h e r
or n o t t o s u b d i v i d e i nto d i f f e rent f u n ct i o na l wo rk p a c kages .
S u p pose
i t i s dete rm i ned to o n l y go to the th i rd l eve l ( gu i da nce system ) w i th
a common e n d i tem a n d f rom t h e re dow n there wou l d b e no d i rect corre l at i o n of f u nct i o na l wo rk packa ges .
I n e s s ence , t h e re wou l d be
u n i q u e end i tems for ma n u factu r i ng , e n g i nee r i n g , too l i n g , etc . ,
�ta rt i ng w i t h the fou rth l eve l .
Th i s , obv i ou s l y , i s a t w i de va r i a nce w i th the PE RT/Cost req u i reme nts .
The n etwo rks co u l d be cons t r u cted but there wou l d be no t i e- i n
on a one-fo r-one bas i s between the netwo r k for eng i neer i ng a n d the
netwo rk for ma n u f actu r i ng .
Stated d i f fe re nt l y , i t wou l d be a wo r k
pac kage b rea kdown wh i c h wo u l d not summa r i ze w i t h i n i ts e l f b u t one
wh i c h cou l d be s umma r i zed to others ; i n ef fect t h e re wou l d be a top
head i ng wh i c h rea d tota l cost , the next l eve l wou l d have one head i n g
eng i neer i ng cos t a n d the oth e r , ma n u factu r i ng cost .
Then u n der
eng i nee r i n g t h e re wou l d be a s e r i e s o f end i tems , a n d u nd e r ma n u f a ctu r i ng , a se r i es o f end i tems .
The a rg ument a r i ses a s to wheth o r o r not
57
�
commo n e n d I tem
r
I
I
"
nece s s a r i l y a l l ows for i nc reased ma nageme nt co ntro l .
Many fee l that
PERT/Cost i s not neces s a ry a n d, spec i f i ca l l y , that the p resent o rg a n i zat i on a n d systems i nvo l v i ng sect i on n umbe rs a n d M l n umbers a l l ow j u st
as much v i s i b i l i ty .
I t h a s been state d that i t i s des i ra b l e to be
a b l e to take an e n d i tem and f o l l ow i t t h rough a l I the va r i ou s f u nct i ons .
One i mportant re ason why th i s appea rs des i ra b l e i s the i n-
c reased a b i l i ty to ma ke tra de-o f f dec i s i on s b etween f a c l l i t i es , ma n u factu r i ng , eng i nee r i n g , u s e of ma npowe r , etc . , a n d the ma n agement
can ' t ma ke those de c i s i on s w i thout th i s common denom i n a to r .
Some h i g h ma nageme n t person n e l a re not s u re th i s i s rea l l y t rue
beca use they state that they themse l ves h a ve neve r made a�y of these
k i n d s of d i c i s i ons .
Many t i mes the q uest i on i s d i f fe re nt ; someth i ng
goes w rong a n d must be so l ved i n respect to the l i m i tat i on of the
p rob l em i ts e l f .
Hen ce , the p rob l ems a re u s u a l l y not of the mag n i t u de
o r natu re that req u i re a n a c ross-the -boa rd exam i na t i on .
SUMMARY
One of t h e p r i ma ry req u i remen t s res u l t i ng f rom the Project Def i n i t i on Phase i s an op e rat i on a l PERT/Cost System for the deve l opment
p rogram .
I n t u r n a p r i ma ry requ i remen t of PERT/Cost i s the estab l i s h -
:
me n t of a common e n d i tem a s a u n i f o rm dev i ce f o r u s e b y eng i nee r i ng ,
ma n u f actu r i ng , too l i ng , p l a n n i n g , etc . , i n est i mat i n g costs , sched u l i ng events , re port i n g p rog res s , a n d ret r i ev i ng actua l expend i t u res .
The a uthor ma i nta i n s that the p resent account i n g systems a re not
c a p a b l e of sat i s f y i ng th i s requ i remen t a n d w i I I h a ve to be i mp roved
I f they a re go i ng to do so .
One poss i b l e so l ut i on to th i s r rob l em ,
58
,.
r
i
i
t h e S ect i on
I n d ex N um b e r ,
T h e S ect i o n
d ow n ( s )
h a s b ee n p re s ented
I n dex Numbe r ( s )
to w h i c h a l l
wi l I
i n th i s c h a p te r .
g i ve a u n i q u e e n d
i tem b re a k­
o rg a n i z a t i o n d e p a rtme n t s c a n est i mate ,
d et e rm i ne
s c h ed u l e s ta t u s a n d ret r i eve expe n d i t u res a s requ i re d b y P E RT/Cos t .
Howeve r ,
as
i s t h e c a s e w i t h most c h a n g e s , t h e re a re t h e a s so c i a t e d
a d v a n tages a n d
d i s a dva ntag e s .
T h e re a re t h re e ma i n d i s a d va n t a g e s f o r e n g i n ee r i ng w h e n t h e S . l .
S y s tem
i s comp a re d w i t h p re s e n t sy stems .
F i rst o f a l I ,
t h e re w o u l d
b e a g re a t e r q u a n t i t y o f d ra w i n g s a n d " d ummy " f u n ct i on a l
d r aw i ng s .
S e c o n d l y , e n g i nee r i n g w o u l d
s y stem
l o se th e i r f reedom
i n d ete r­
m i n i ng t h e d ra w i ng b re a kdown s t r u c t u re d u e to t h e f a ct t h a t t h ey wou l d
h a ve to c o n s i de r t h e w a y t h e e n d
therefore ,
i tem w a s to be ma n u f a c t u r e d a n d ,
have ma n u f a c tu r i n g ' s a p p rova l
o f t h e d ra w i ng s t r u ct u re .
F i na l l y , s i nce t h e re w o u l d be no f u nct i o n a l
s u b s ystem ,
w ou l d
g u i d a n ce s u b s y s tem , e tc . )
l os e co n t ro l
s y stem ( i . e . , e l ect r i ca l
d ra w i ng s t r u ct u re , e ng i ne e r i ng
o f d ra w i n g res p o n s i b i l i t y a n d
i nt ra - f u n ct i on a l
g ro u p d raw i ng s c h ed u l es .
T h e ma i n a d v a n ta g e to e n g i n e e r i ng w o u l d b e t h e f a c i I i ty w i th
w h i c h d ra w i ng c h an g e s cou l d b e i mp l eme nted s i nce the d ra w i ng wo u l d
d i rect l y r e f l ect t h e a re a s a f f e cted b y t h e c h a nge .
Ma n u f a ct u r i ng wou l d rea l i z e t h e d i s a d v a n t a g e o f
t h e h i s to r i c a l
d a ta th at w a s d e r i ved
On t h e ot h e r h a n d , t h e S . l .
l o s i n g some o f
f rom t h e p r e s e n t - d a y M . I .
S y s tem p rov i de s mo re d et a i I
S y s t em .
cost s e g re g a ­
t i o n a n d a d i rect c o r re l a t i on b etween e n g i n e e r i n g d ra w i ng s a n d a c t u a l
a s semb l i e s
for
i niti a l
d e s i g n a n d d e s i gn c ha n g e s , t h u s e l i m i n at i ng t h e
59
t a s k of conve rt i ng e ng i nee r i ng p ro d u c t i o n d raw i ng s i n to a us a b l e form
fo r f a br i ca t i on a n d a ssemb l y .
I n conc l u s i on , the a u t h o r i s a ttem p t i n0 to po i nt o u t t h e d i ff i c u lt i e s t h a t c a n be a nt i c i r a te d i n comp l y i ng w i t h PERT/Co s t re q u i rements a nd i s q u est i on i ng t h e des i ra b i l i ty of ut i I i z i ng t h e PERT/Cost
ma nag ement te ch n i q ue i n i ts rre s e nt fo rm .
I t a p r e a rs t h a t i f dev i a -
t i ons to t h i s p a rt i c u l a r re q u i rement ( a common end i te m ) w e re made ,
t h e c h a nces fo r be tte r cont racto r comp l i a nce wou l d be g reat l y enh a nced .
60
CHAPTER V
I NTRODUCT I ON TO THE DE F I N I T I ON PHAS E
The p u rpose o f t h i s c h a p te r
the De f i n i t i on Ph a s e ,
(b)
i s to d e s c r i be :
1
( a ) t h e concept of
s i g n i f i ca n t c u stome r a ct i v i t i e s a n d t he i r
re l at i o n s h i ps d u r i ng t h i s p e r i od ,
and
(c)
t h e res u l ta n t p ro d ucts
w h i ch h a v e a d i rec t b ea r i ng o n con t ra c to r e f f ort d u r i n g t h e P roj ect
De f i n i t i o n P h a s e .
T h i s c h a p te r w i I I
con c e r n
i ts e l f w i t h t h e De f i n i t i on Ph a s e con-
ce p t f rom the c u s tome r ' s v i ewpo i n t and
t i at i o n .
It wi l I
i ts j u s t i f i cat i on or s u b s ta n -
exam i ne a n d comment on t h e a ct i v i t i es of the c u stomer
l ea d i n g to the a w a r d of d e f i n i t i o n co n t racts f o r Ph a s e 1 8
i n F i g u re 6 ,
2
as s h own
p a ge 62 .
The D e f i n i t i on Phase h a s been f o rma l l y
f o l l ow i ng s u mma r i zed o b j ect i ves :
i nco rpo rated to obta i n t h e
the p repa ra t i on o f deta i l e d p l a n s ,
rea l i st i c cos t a n d s c h e d u l e est i mates ,
i d en t i f i cat i on of h i g h r i s k
a reas , e va l u at i o n of t i me cos t pe r f o rm a n ce t rade-o f f s ,
dete rm i nat i on
of ach i evab l e s y s tem p e r f o rma nce/des i g n requ i reme n t s s p ec i f i cat i o n s ,
end
i tem deta i I
s p ec i f i c at i ons , a n d t h e deve l opment o f a b a s i s f o r
f i rm f i xed p r i ce o r i ncent i ve con t racts f o r the deve l opment p rog ram .
1
Th i s c h a p t e r h a s exte n s i ve l y d rawn u pon S y s tem Prog ram Ma n a ge­
me nt Ma n u a l , [Ch a p t e r 2, De f i n i t i on P h a s e] , A i r Fo rce S y s tem Comma n d
Ma n u a l 375-4 , Ma rch 1 6 , 1 964 .
2
F rom tho co n t ractors v i ewp o i n t ,
d e f i ned b y DOD D i rect i ve 3200 . 9 ,
Phase
tho P roject D o f l n i t i o n P h a � o a s
Feb r u a ry 26 ,
lB.
61
1 964 ,
i s s y nonymo u s w i t h
D E IF I N IT!ON CYClE
C O NC EP T U A L
P H ASE
P HASE 0
PHASE 18
PHASE lA
C O N CEPTUAL
PHASE
TRANS IT IO N
J-4-.---
I
:
I
P R E PA R E f O R
CONTRACTOR
I
:
I
I
D E F I N IT ION
PHASE
DEVELOPMENT
PROGRAM
PHASE IC
:
CONTRACTOR I
R EV IEW
AND
1
DECISION
I
I
I
* 240 DAYS ---t:--!4- 180 OAY S�60 OAYS�30 DAYS-PI
I
I
I
I
I
DEFINITION
1
v
SOR/ADO
APPROVAL O F
I SSUED &
TOP, P C P , MCP,
O&F, & PROGRA M
R E Q U IREM E NTS
S P O CADRE
ESTABLISHED
ACQU I S I T I O N
D EFINITION PHASE
I
v
v
AWA R D O F
DEFINITION
C ONTRACTS
�
PHASE 18
REPORTS &
PSPP,
PCP &
I N IT IA L
D EV ELOP ­
PHASE I I
RECOM M E N D ED
C ONTRAC -
ME NT
P R O P O SAL
R EC EIVED
BASELINE
DEFIN ITION
D I R E CT IV E
•
TORS
SUBMIT-
I S S U ED &
TED F O R
FORMAL SPO
ESTABLISH ED
APPROVAL
C O NTRACT
N EGOTIA- ­
TIONS
* TH E S E A R E T H E M A X I M U M N U M B E R O F D A Y S F O R A T Y P I C A L M A J O R S Y S T E M
S OUR CE: A I R FOR C E S Y ST E M S C O M M A N D M A N U A L
3 7 5 4 , M A R C H 1 6 , 1 9 6 4 . P . ll- 4 .
C H A P T E R 2 · D E F INITI O N P H A S E I N T HE S Y S TE M S P R O G R A M M A N A G EM E N T M A NU A l .
FIGURE 6
T h e f u n d amen ta l p u rpose of t h e De f i n i t i on P h a s e i s to de f i ne t h e deta i l e d cos t , s c h e d u l e , and tech n i ca l req u i reme n t s of a p rogram as
ea r l y a s poss i b l e i n i t s l i fe cyc l e .
O f t h e s i x Re sea rch , Deve l opmen t , Te s t a n d E n g i nee r i n g ( RDT&E )
catego r i es ! t h e De f i n i t i on Phase con ce p t a p p l i e s to a l I new Eng i nee r i n g Deve l opme n t and O p e r a t i on a l Sy s te m Deve l op me n t p rog rams w h i c h
requ i re c um u l at i ve f u n d i n g i n excess o f 2 5 m i I I i on do l I a rs , u n l es s
t h e req u i reme nt
i s s p ec i f i ca l l y wa i ved , i n w h o l e o r i n p a rt , b y
w r i tten a p p rova l o f t h e O f f i ce o f S e c re t a ry o f De f e n se .
Ot h e r p rog rams
may b e req u i re d to i n c l u d e a De f i n i t i on P h a s e , i n w h o l e or i n p a rt , at
the d i s c re t i on of the O f f i ce of Sec reta ry of De f e n se .
Fo r examp l e ,
L i m i te d Wa r , M i l i t a ry A s s i s t a n ce P rog ram ( MAP ) , Cou nte r I n s u rg e n cy
( CO I N ) , m a j o r Gove rnme n t F u rn i s h e d A e ros p a ce E q u i p me n t ( G FAE ) ; major
mod i f i ca t i on s or extens i o n s o f c u r re n t p rog rams to i nc rease p e r f o rman ce o r a d va n ce d deve l opme n t p roj ects f o r wh i ch e n g i n ee r i ng deve l o p men t h a s
not y e t been con s i de re d .
Conce p t
T h e De f i n i t i o n P h a s e h as b e e n e s t a b l i s he d a s a l og i ca l p roce d u ra l
s te p f o r a ccomp l i s h i n g a n o r de r l y t r a n s i t i on f rom t h e Conce p t u a l to
the A c q u i s i t i o n P h a se .
The De f i n i t i on P h a s e systemat i ca l l y t ra n s l ates
tec h no l og i c a l a d va n ces re s u l t i n g f rom t h e Con cep t u a l Phase i n to tota l
s ystem des i g n re q u i remen t s to be met d u r i n g t h e A c q u i s i t i on P h a se .
I I . e . , Res e a r ch , Exp l o ratory Deve l o pme n t , A d v a nced Deve l opment ,
O p e r a t i on a l Systems De ve l opme n t , a n d r� a n ag eme n t a n d S u p port p e r DO D
I ns t r u ct i o n 3200 . 6 , J u ne 8 , 1 9 62 .
( Re f e re n ce footnote p . 20 )
63
These des i g n re q u i reme nts a re a p p roved a s a b a se l i n e fo r ma n ag i n g t h e
des i g n a n d deve l opme n t o f a s y s tem p rog ram .
T h e y become the b a s i s f o r
s u b s eque n t bas e l i n es f rom w h i c h a s y s tem c a n be b u i I t a n d me a s u re d .
The De f i n i t i on Phase a l so se rve s to e n s u re t h a t f u l I s ca l e deve l o p me n t
i s not s t a rted u n t i I costs , s c h e d u l e s , a n d p e r f o rma n ce o b j e ct i v es h a ve
been ca re f u l l y de l i neated a n d eva l u ated a n d t h a t a h i g h p ro b a b i l i ty for
s ucce s s f u l a ccomp l i s h ment of the Acq u i s i t i on Phase h a s been estab l i s hed .
T h e De f i n i t i o n P h a s e i s i n i t i a te d u p o n t h e b a s i s of t h e i n f o rma ­
t i on p rov i d ed i n t h e Concep t u a l P h a s e a n d b ro ug h t i n to focus by t h e
S p ec i f i c Ope rat i o n a l Re q u i remen t/Advanced Deve l opme n t Object i ve ( SOA/
ADO ) a s ex p a n de d i n the Tech n i c a l Deve l o pme n t P l a n ( TOP ) .
A S y s tems
P rog ram O f f i ce ( S PO ) Ca d re a s s i s te d by t h e a d vanced p l a n n i n g agen cy ,
( th e S PO Ca d re u s ua l l y a l so s o l i c i ts t h e s u p p o rt o f oth e r a d v a n ce d
p l a n n i n g o rg a n i z a t i o n s s u c h a s A F L C P l a n s O f f i c e , ATC P l a n s , O p e ra ­
t i on a l Comma n d P l a n s , e tc . ) , p re p a re s a De f i n i t i o n P l a n w i t h a s u p port­
i n g P rog ram Cha nge Propos a l
( PCP ) f o r s u bm i tta l t h rough c h a n n e l s to
the S e c reta ry of the A i r Force .
Fo l l ow i n g the eva l u a t i on a n d a p p rova l ,
a De f i n i t i on D i rect i ve , w h i c h i n c l u d e s the neces s a ry f u n d s to a ccom­
p l i s h a De f i n i t i on Ph ase , i s i s s u e d .
a ugme n ted by a d d i t i on a l p e rsonne l .
At t h i s po i nt , the S PO Cad re i s
The SPO i s a p p rove d a s a f o rma l
o rg a n i z a t i on fo l l ow i n g t h e comp l e t i o n of a APO Read i n e s s S u rvey con­
d ucted by Hea d q u a rte r s , A i r Force Sy stems Comma n d < A FS C ) .
The Co nce p ­
tua l T ra n s i t i o n Ph ase 0 occ u r rs d u r i ng t h e l a tte r p a rt o f t h e Concep ­
t u a l Ph ase .
Phase 0 ( somet i mes ca l l ed P re-De f i n i t i on Pe r i od ) beg i n s
w i th t h e p u b I i c at i on o f a SOR/ADO a n d cons i s ts o f the ac t i v i t i e s
64
necessa ry to p re p a re a TOP , De f i n i t i on P l a n , a n d PCP , a n d e n d s w i t h
the i s s ua n ce of a De f i n i t i o n O i rect i ve a n d e s t a b l i s hme nt of a f o rma l
S PO .
De f i n i t i o n i s
a
th ree- p h ase o p e rat i o n cons i s t i n g of P h a s e l A
( P re p a re f o r Cont ractor De f i n i t i o n ) , P h a s e 1 8 ( Cont ractor De f i n i t i on ) ,
a n d P h a s e I C ( Rev i ew a n d De c i s i o n ) .
P h a s e l A b eg i n s w i t h a n e s t a b l i s h e d f o rma l S PO a n d con s i s t s o f :
( I ) i n - h o use tech n i c a l e f f o rt to p re p a re the wo r k stateme n t , sy stem
spe c i f i ca t i o n s , req uest for p rop osa l , p l a n s a n d s c h e d u l e s , ( 2 ) Gove r n me n t d i rected act i on s to p re p a re p roposa l s based on t h e RFP , a n d ( 3 )
p ropo s a l eva l u at i o n , se l e ct i o n of con t racto r s , a n d co nt ract negot i a t i on f o r Phase 1 8 .
Phase 1 8 beg i n s w i t h t h e award of De f i n i t i o n con-
t racts and cons i s ts o f the e f fort by the co n t racto rs to d e f i n e a l I
e l ements o f t h e p rog ram i n te rms of p e r f o rm a n ce , t i me , a n d det a i l e d
cost , a n d e n d s w i t h t h e s u bm i s s i on of t h e cont rac to rs ' reports a n d
deve l opment p rog ram p roposa l s .
Phase I C beg i n s w i th t h e f i n a l eva l u a -
t i on o f cont ra cto r p roposa l s fo r t h e deve l o p ment p rog ram , i n c l u d i n g
A i r Force eva l ua t i o n of t h e p rog ram u n d e r co n s i de r at i o n , a n d e n d s w i th
t h e i s s u a n ce of t h e S y s tem Prog ram D i rect i ve , the f u n d s neces s a ry to
con d uct the p rog ram , a n d
a
de f i n i t i zed co n t ract re a d y f o r s i g n a t u re .
Pa rt i c i p at i ng O rg a n i z at i o n s
T h e l i fe cyc l e o f a n y p rog ram re q u i res t h e coop e rat i o n o f va r i o u s
c u s tome r organ i z at i ons work i ng u n d e r t h e ma nag i n g a g e n cy o f t h e S PO .
The S PO w i I I , as necessa ry , ut i I i z e the re sou rce s o f va r i o u s A i r Force
age n c i e s a n d agenc i e s w i t h i n DOD .
The res pon s i b i l i t y o f manag i n g and
con d u ct i n g t h e De f i n i t i on Phase i s a s s i g ned to t h e S PO .
65
A s the
ma n ag i n g a gency ,
i t m u s t a s s u re t h e deve l opment a n d i nteg ra t i o n of a l 1
t h e A i r Force f u n ct i on a l p l a n n i n g needed to e f fect t h e Def i n i t i o n p ro­
ce s s .
Norma l l y , the agenc i e s s u p p o rt i ng the S PO i n accomp l i s h i n g the
Def i n i t i o n Phase a re :
( I ) the U s i n g Comma n d o r o rg a n i z a t i o n who wi I I
p rov i d e the p l a n s f o r use o f t h e sys tem , ( 2 ) the A i r Fo rce Log i s t i c s
Comm a n d ( A F LC ) who w i I I p rov i d e t h e p l a n f o r the ma i nte n a nce a n d l o g i s­
t i c s u p po rt ,
( 3 ) t h e A i r T ra i n i ng Comma n d C ATC ) w ho w i I I p rep a re t h e
p l a n f o r the tr a i n i ng o f A i r Fo rce pe rsonne l , a n d ( 4 ) Genera l Sy stem
Eng i nee r i n g a n d the A i r Fo rce i n - h o u s e e ng i nee r i n g pe rson n e l who w i I I
p rov i d e t h e system eng i ne e r i ng a n d tech n i c a l s u p p o rt .
These o rga n i z a ­
t i o n s must dynam i c a l l y p a rt i c i pate i n t h e De f i n i t i o n P h a se t o a s s u re
a c h i e veme nt o n a l I p rog ram obj ect i ves .
Concept u a l P h a s e T r a n s i t i o n
T h i s sect i o n i s a c u rsory exam i nat i o n o f t h e c u s tome r e f f o rt u p
t o P h a s e l A , P re p a ra t i o n f o r Con t ra cto r D e f i n i t i on , w h i c h f o l l ows .
It
i s i m portant to note the i n te r re l at i on s h i p between c u stome r a n d co n ­
t racto r because o f t h e m a n y u n i l a tera l
req u i rements ; t h e c u s tome r
estab l i s hes many systems , p roce d u res , e n d i tems , et c . , b e f ore there i s
a n y cont ra cto r p a rt i c i p at i o n .
Th e f i rst n ot i ce to t h e co n t ra c tor t h a t t h e re may be a f o rt h com i n g
deve l opment p rog ram i s the estab l i s hme nt of a S PO Ca d re .
The SPO Ca d re
i s d e f i ned a s a n o r g a n i za t i o n estab l i s hed by w r i tten d i rect i o n of t h e
D i v i s i o n Comma n d e r t o se rve a s the s i n g l e A FSC m a n ageme n t o f f i ce f o r
t h e p rog ram d u r i ng the Co n ce p t u a l T ra n s i t i o n Phase .
Once t h e SOR/ADO
f s f o rmu l o tc d , f u t u r e goa l s must be d e f i ned s u f f i c i e n t l y so t h a t t h e
66
g reat ex p a n s e of work neces s a ry to ach i eve these goa l s can be mo re
re a l i s t i ca l l y c h a rted a n d p l a n ned .
T h e S PO Ca d re w i I I p repa re p re -
l i m i na ry i n teg rat i o n a n d i mp l ement a t i o n p l a n s to g u i de f u t u re de f i n i t i o n a n d a cq u i s i t i o n e f f o rt a n d w i I I act a s a n u c l e u s f rom w h i c h a
f o rma l SPO w i I I
l a te r evo l ve .
p a re a n i n i t i a l TOP .
T h e f i rs t req u i rement
w i I I b e to p re -
Th i s w i I I re q u i re t h e a s s i s t a n ce o f t h e D i v i s i o n
a d va n ce p l a n n i n g of f i ce , t h e Us i n g Comma n d , a n d s u p p ort Comma n d s .
The TOP i s t h e b a s i c i n i t i a l p l a n n i n g doc ume n t w h i ch l a ys out t h e
e f f o rt re q u i re d t o d e f i n e t h e system a n d eve n t u a l l y deve l op t h e P roposed Sy stem Packa ge P l a n ( PS PP ) .
Th e TOP conta i n s t h e va r i o u s f u nct i o n a l conce p ts a n d r u d i menta ry
p l a n s wh i ch w i I I p rov i de t h e b a s i s f o r the deve l opmen t , p roduct i o n ,
l og i s t i c s s u p p o rt , t ra i n i ng , a n d ope rat i o n o f t h e sys tem .
A t a l a te r
d a te t h e s e con c e p t s a n d p l a n s a re conve rte d by t h e o p e rat i o n a l S PO
i n to f o rma l p l a n s of re q u i red act i o n i n each a rea .
s e q u e n t l y s umma r i zed i n t h e PSPP .
The p l a ns a re s u b -
A I I sect i o n s of t h e TOP w i I I be
deve l op e d b y , or obta i n ed i n co n j u n ct i on w i th , the Agenc y of P r i ma ry
Re spons i b i l i ty ( A PR ) .
A I I sect i on s w i I I
be coo rd i na te d w i t h f u n c -
t i o n a ! o rg a n i z at i on s , bot h w i th i n a n d o u t s i d e AFSC w h e n ever t h a t
o rga n i z a t i on h a s a co l l at e ra l respons i b i l i t y o r i n vo l veme n t d u e to
the i n te r re l a t i o n s h i p of the f u n ct i o n s .
At t h i s po i nt i t s h o u l d be c l e a r l y recog n i z e d t h a t t h e TOP f o rms
the bas i s f o r t h e P rog ram Re q u i reme n t s Bas e l i n e .
A s s u ch , i t w i l I be
nece s s a ry for t h e o p e ra t i ng comma n d to p rov i d e an o p e ra t i o n s p l a n a n d
t h e l og i s t i c s comma n d to p ro v i de a p e rson n e l a n d t ra i n i ng p l a n , p r i o r
67
to the i n i t i at i on of Phase l A o f the Def i n i t i on Phas e .
Some o f the re-
q u i red i n format i on may not be ava l I ab l e at the t i me the TOP i s p rep a re d o r expand e d .
I n these case s , est i mates w i l l b e u s e d .
To the
g reatest deg ree pos s i b l e , a l I outputs f rom the va r i ou s agenc i es w i l l
be u t i l i ze d to deve l op the sect i ons of the TOP .
P r i o r to t h e t i me
that the TOP i s s u b m i tted to h i g h e r headq u a rte rs f o r a p p rova l ( to
estab l i s h the P rog ram Requ i rements Base l i ne ) , every e f f o rt w i t I b e
made t o def i ne i ntang i b l es a n d p re se nt f i rm s c h ed u l es a n d concepts .
I n o rde r to obta i n a p p rova l f rom h i g h e r headq u a rte rs , f act u a l data m u s t
b e p resented i n the a reas of k e y management d ec i s i on dates a n d pe rformance req u i reme nts , des i red p ro d u ct i on sched u l e� t rade-o f f a l te rnat i ve s ,
des i gn c r i te r i a f o r the system , concepts o f ope rat i on a n d s u p po rt a n d
tota l cost o f t h e p rog ram .
A p re l i m i na ry p l a n for cond uct i ng the Def i n i t i on P h a s e w i l I b e
p re p a re d b y the S PO Ca d re .
At th i s t i me p the p l an wou l d b e i n the
form o f an o ut l i ne o f the o b j ect i ves of a Def i n i t i on Ph a se .
The p u r -
p o s e of th i s p re l i m i na ry p l an i s t o e s ta b l i s h the f ramewor k for the
eve n t u a l deve l opme n t o f a spec i f i c deta i l ed p l an ta i l o red for the p rog ram wh i ch i s to be def i ne d .
The p l an i s to be f o l l owed by the S PO/
cont ractors i n con d u ct i ng Phases l A a n d
18
i n o r d e r to e f f e ct i ve l y
i nteg rate a l I con t racto r ' s/Gove rnme n t agenc i es ' e f f orts .
The concept
of the p l an i s to p rov i d e the method b y wh i ch the act i v i t i es on the
def i n i t i o n n etwor k c a n b e e f fect i ve l y i mp l emente d .
I t s hou l d b e
note d p h oweve r , that before a comp l ete deta i l ed p l an c a n be f o rm u l a ted ,
the res u l ts of Phase l A a re nece s s a ry .
68
'
I
Funds
a r e a l so
re l e a s e d p r i o r to P h a se
t h e De f i n i t i o n D i re c t i ve ,
t h e S PO ,
al I
n e ce s s a ry
re l e a s e o f
re q u i reme n t s
fun ds ,
for the
lA.
W i th the
rece i p t o f
a n d t h e e s t a u l i s h ment of
i n i t i at i on of
the Phase
lA
a re a v a i ! a b l e .
These
b l i s hed
re q u i reme n t s
the
q uests the
p re s e n t s
i n c l u de :
( I )
co n c e p t a n d / o r
initial
f u n ds t o
l aunch
t h e k n ow n d e t a i I s
the
re q u i reme n t ,
t h e De f i n i t i o n P h a s e ,
of
SOR / ADO w h i c h e s t a ­
initial
t h e P rog ram a n d
( 2 ) t h e PCP w h i c h r e ­
( 3 ) t h e TOP w h i c h
i ts De f i n i t i o n P h a s e ,
( 4 ) t h e De f i n i t i o n P l a n w h i c h p rov i de s t h e i n f o rmat i o n n e ce s s a r y f o r
t h e dec i s i o n
p roces s ,
MCP w h i c h p re s e n t s
( 5 ) t h e tota l
Phase
l B.
Phase
l A - P r e p a r a t i on
i ous
a u t h o r i zes
c u s tome r o rga n i z a t i o n s
f o rmed
req u i reme n t ,
(7)
negot i a te d p ro c u reme nt o f
t h e S PO as
have
weapon
a n um b e r o f
F rom o u r s t a n d p o i n t ,
b y t h e co nt racto r a re o f
o f c u s tome r e f f o r t
( 6 ) the
f o r Cont r a cto r De f i n i t i o n
t h e e s t a b l i s h me nt o f
i s s u i n g the RFP .
req u i reme n t s ,
th e k n o w n m i I i t a ry con s t r u c t i o n
t h e s i g n e d d i rect i v e w h i c h
W i th
f i n an c i a l
t a s ks
howeve r ,
p r i ma ry
i s on l y to e s t a b l i s h
s y s tems m a n a ge r ,
the
to com p l e t e b e f o r e
the tasks
i mp o rt a n ce .
v a r­
to b e p e r ­
T h e ex p l a n a t i o n
f ramew o r k w i t h i n w h i c h
t h e co n t r a c t o r m u s t com p l y .
It
me a n s o f
is
n e ce s s a ry to e s t a b l i s h
b a s e l i ne p roce d u re s
co n t ro l
i n o r d e r to
co n s t a n t l y d i re cte d tow a r d moot i n g ,
short o f
p rog ram re q u i reme n t s
req u i reme n t c h a n g e s .
p roq ram s t a t u s
It
is
i s co n s t a n t l y
and
of
p rog ram r e q u i reme n t s
i n s u re t h a t t h e
r a t h e r t h a n exce e d i ng o r
t h a t c l o a r a ut h o r i ty
f u rth e r n ece s s a ry to
ro f l o ct o d ,
69
p rog ram
t1y mo a n s
is
by
is
fa l l i ng
gra nted
for
i n s u re that actua l
of
c h a ng o p roce d u r es ,
t h ro u g h t h e u s e o f p res c r i b e d p rog ram doc umentat i on .
As s u c h , t h e
documentat i on con st i tu t i n g t h e P rogram Req u i reme n ts Base l i n e becomes
a f o rc i n g f un c t i o n upon t h e p rog ram i n te rms of t i me , p e r f o rma n ce , a n d
cost , a n d i s t o b e emp l oyed a s a man ageme n t dev i ce f o r exe rc i s i ng po s i ­
t i ve man ageme n t contro l of t h e s y s te m .
B y mea n s o f t he a bove p roce­
d u re , a s i ng l e a u t h o r i ty p o i n t i s e s t a b l i s h e d as the re f e re n ce b a se
f o r the con s i de r a t i on o f i nte rn a l a n d exte r n a l
recommen d e d c h a n ge s to
p rog ram re q u i reme n ts .
T h e S PO p re p a re s a n i n i t i a l tota l sy stem p e r f o rma nce/des i gn re­
q u i reme nts s pec i f i c at i on b a sed u p on ( a ) the t rade-o f f s t u d i es a n d modes
o f ope rat i o n i de nt i f i e d , ( b ) t h e s y stem p e r f o rma nce req u i reme n t s a n d
d e s i gn con st ra i nts des c r i be d , ( c ) t h e i n i t i a l f l ow a n d a n a l y se s , a n d
( d ) the TOP .
T h i s s p ec i f i c at i o n w i l l state , i n s umma ry f o rm , t h e
system f u n ct i o n a l c h a racte r i s t i cs , t h e ge n e r a l des i g n c r i te r i a , t h e
s ystem p e r f o rmance req u i reme nts ( i nc l u d i ng re l i a b i l i ty a n d ma i nt a i n ­
a b i l i ty ) , s e l ected 1 st l eve l h a rdwa re e n d i tems w he re i de nt i f i ed , a n d
t h e i nte r f a ce req u i remen t s o f 1 s t l e ve l h a rdw a re e n d i tems m a k i n g u p
t h e s y stem .
T h e s p e c i f i ca t i o n w i I I a n swe r t h e q ue s t i o n , ''Wh a t i s exp ected o f
t h e tota l system i n orde r to f u l f i I I
i ts i n te n de d m i s s i on ? "
I t s ho u l d
be u nd e rs tood t h at t h e re a re m a n y f ee d b a c ks f rom va r i o u s act i v i t i es
d u r i ng t h e e a r l y P h a se l A state w h i c h w i I I a f f ec t t h e con t e n t o f t h e
top s p ec i f i ca t i on .
T h e s pe c i f i ca t i o n p rov i de s t h e b as i s f o r t h e work
stateme nts for P h a s e I B and t h e deve l opment p rog ram .
I t a l so p rov i des
the d a t a req u i re d to p re p a re othe r f o l l ow-on spe c i f i ca t i o n req u i reme n t s ;
70
e . g . , t h e s p ec i f i c at i on t ree , a n d e n d i tem deta i I s p e c i f i c at i o n s .
Man ageme n t cont ro l of t h e system p e r f o rm a n ce / des i g n req u i reme n t s
spe c i f i c a t i on , as we i I a s oth e r spe c i f i ca t i on s , w i I I be u n de r the S PO .
The con t ro l
i n tended h e re i s t o e s t a b l i s h a f oca l po i n t f o r ch a nges ,
a n d to eve n t u a l l y estab l i s h a n a p p r·o ved Des i g n Req u i reme n ts Base l i n e .
The adequacy a n d accu racy o f the tech n i c a l content a n d u se o f t h e
spe c i f i c at i o n s w i I I be the res p o n s i b i I i t y o f t h o SPO/System E n g i nee r i ng D i v i s i o n .
I n o r d e r to estab l i s h a n i n i t i a l f rame o f re f e re nce f o r f u r t h e r
d e f i n i t i on e f f o rt , a p re l i m i n a ry h a rdw a re s p ec i f i cat i on t ree t o t h e
f i rst l e ve l e n d i tems i s p re p a re d b y the SPO a t t h i s t i me .
Th i s
s p ec i f i c at i on t ree w i I I be based upon the i n i t i a l f u n ct i on a l f l ow s
a n d a n a l yses , sys tem p e r f o rma n ce re q u i remen t s a n d system d e s i g n con s t ra i nt s a n d the accomp l i s hed t ra d e -o f f i de n t i f i c a t i o n s .
As f u rther
de f i n i t i on e f f o rt oc c u r s , th i s t ree w i I I be ex p a n d e d to i n c l u d e def i n i t i o n to t h e l owest l e ve l of h a r dw a re end i tem.
The p repa rat i o n o f t h e Ph a s e 1 8 wo r k s tateme n t rep res e n ts a c u i m i nat i o n o f t h e act i v i t i e s u c comp l i s h e d u p to t h i s po i n t i n the Def i n i t i o n cyc l e a n d , as s u c h ,
t h e De f i n i t i o n p roces s .
i s one of t h e most s i � n i f i ca n t eve n t s i n
To a g reat exte nt , the s u ccess o f Ph ase 1 8
i
; l r
: 1 1
'' !
w i I I be gove rned by the ab i l i t y of the S PO to tra n s l ate i n format i on
p rev i ou s l y acqu i red i n t o a n e f fe ct i ve wo r k st ateme n t .
The P h a s e I B
wo r k stateme nt i s the re s p ons i b i I i ty o f the S PO E ng i neer i n g D i v i s i o n .
I t w i I I conta i n a s a m i n i m um :
( f ) a I i s t o f sou rce documentat i o n con-
ta i n i n g b a s i c sy stem req u i rements ;
t
i . e . , SO R/ADO , conce p t u a l s t u d y
!,
71
·.
I
rep o rts , spec i a l i ze d data , e tc . , ( 2 ) t h e i n i t i a l s ys te m p e r forma n ce /
d es i gn req u i rements spec i f i cat i o n , i nc l u d i ng p re l i m i nary s p ec i f i ca t i on
t ree a n d tech n i ca l s t u dy b a c k u p data , ( 3 ) a d e l i neat i on of a l I t h e
t a s ks to be accomp l i shed b y t h e cont racto r , a n d
t h e p re l i m i n a ry
(4)
p rog ram man agement network , a n d ( 5 ) p l an s a n d s c h ed u l e s , i n c l u d i ng
req u i rements for the p l an n i ng of test a n d dep l oymen t a n d a req u i re ment f o r t h e contractor ' s management p l a n wh i ch estab l i s h e s a man agemen t a n d tech n i ca l co ntro l to ach i eve the obj ect i ves o f the con t ract .
I
1:
The work stateme nt w i I I conta i n s u f f i c i ent gu i d a nce for a n adequate
and p re c i se p ropos a l f rom the cont ractors .
I t i s v i ta l l y i mp o rt a n t
t h a t t h e app l i ca b l e doc uments t o be refe renced i n t h e work stateme n t
a re c a re f u l l y exam i ne d f o r d u p l i cat i ve req u i rements .
I n a d d i t i on p a s p ec i men deve l opme n t p rog ram wo rk statement i s
p repared a n d made a p a rt o f the RFP .
Cont racto rs a re req u i red to
p ropose aga i n st the P h a se I B f u n de d Def i n i t i on P h a se and the spec i men
work stateme nt f o r t h e deve l opme nt p ro g ra m .
T h e spe c i men work state-
ment makes i t poss i b l e for t h e A i r Force to wr i te i nto t h e Ph ase 1 8
contract a pos s i b l e o pt i on to be s e l ected b y t h e A i r Force .
A p ro-
posa l for the d eve l opment p rog ram e f f ort i s s u bm i tted by t he cont racto r ( w i th h i s P h a s e
18
p roposa l ) d u r i ng Phase l A .
I f the opt i on method
o f contract i ng i s u t i l i ze d , t h e A i r Force , a f te r comp l e t i on of P h a se 1 8 ,
may req u i re t h e cont ractor to p e r f o rm t h e work o ut l i ne d i n t h e s pe c i men work s tatement at t h e p r i ce p roposed d u r i ng Phase l A .
T h i s opt i on
may b e a l te re d by req u i r i ng t h e cont ractor to j u st i f y a n y p r i ce dev i at i on s b etwee n tha t p roposed d u r i n g Phase l A a n d t h a t e s t i mated a t
72
I
I
!
I
I
d
the end o f t h e Def i n i t i on P h a se as a res u l t of the d e f i n i t i on p rocess .
T h e p roposa l f o r t h e deve l opment p rog ram e f fort a f f o r d s t h e A i r Force
a cost est i m ate d e r i ve d i n a compet i t i ve e n v i ronment w h i ch c a n be of
cons i d e rab l e va l ue a s the b as i s for cost a n d scope o f wor k negot i at i o n
a t t h e e n d o f t h e Def i n i t i on Phase .
T h e w o rd " spec i me n " i s u s e d to d i f fe re n t i ate th i s work s tatement
f rom the more def i n i t i ve work statement w h i ch w i l l be a p rod uct of t h e
P h a s e I B def i n i t i on e f f o rt .
T h e p rod uct o f a l I f u n ct i on a l S PO e l ements e n ga ged u p t o th i s
po i n t a re now condensed i nto the RFP .
T h e S PO i s respons i b l e f o r t h e
p reparat i on o f the R F P i n acco rdance w i th the obj ect i ve s s et f o rth i n
the p rocu rement p l a ns and rev i ewed and a p p roved b y the sou rce s e l ect i on boa rd s .
T h e RFP i s f u n damenta l i n estab l i s h i ng ( I ) a sound b a s i s
f or dete rm i n i ng the orde r o f p re f e rence of p roposa l s rece i ve d , ( 2 ) t h e
b as i s of negot i at i on s , ( 3 ) a cont ract w h i ch c l ea r l y states t h e comp l ete
A i r Force req u i rements , and ( 4 ) the te rms a n d cond i t i on s wh i ch w i I I
a p p l y to t h e negot i ate d contract .
T h e RFP w i I I i nc l ude :
( ! ) work
s tatements a n d oth e r documents f o r i mp l ement i ng reg u l at i ons a n d/or
d i re ct i ve s of the respons i b l e D i v i s i on a n d /or Comma n d , ( 2 ) req uest for
a n est i mate of the cost for con d u ct i n g Phase 1 8 u n de r p r i ce con t ract,
( 3 ) type of co nt ract a nt i c i p ated f o r t h e deve l opment p rog ram and type
o f i nce nt i ve s des i re d , ( 4 ) req uest for cost p roposa l for t h e deve l op me nt p rogram w i th A i r Force opt i on ,
p e r i od" to cove r Phase I C ,
(6)
(5)
p rov i s i on s f o r a " ho l d i ng
req uest for est i mate of t h e p rod u ct i on
a n d dep l oyment cos t , and ( 7 ) d ate , t i me , a n d p l �ce of s u bm i ss i o n of
73
l
p ropos a l s .
Th i s docume n t , i n t h e f o rm of a l e tte r w i th attachme n t s ,
w i I I p rov i de to p rospect i ve con t ractors the b e s t des c r i p t i on of the
tota l req u i reme n t .
I n o r de r to i n s u re t h a t t h e R F P w i I I y i e l d t h e
t y p e o f p ro p o s a l s re q u i re d f o r d e f i n i t i on ,
a
c l ea r u n de rs t a n d i ng o f
t h e m a j o r e ve n t s i n t h e p re p a rat i o n o f p ropos a l s w i I I n o w b e con s i de red .
Co n t ractor Ph a s e I B Propo s a l Pre p a rat i on
App rox i mate l y the l a st t h i rty d a y s o f P h a s e l A a re u t i l i zed by
t h e con t ra c tor f o r p ropos a l p re p a ra t i o n .
Th i s sect i o n re p re s e n t s
. I!
. I
ma j o r a c t i o n s to be ac comp l i s hed b y t h e cont ractors i n p re p a r i n g th e i r
p roposa l s .
T h e p r i ma ry p u rpose o f the s p ec i f i c R F P i s to p rov i d e t h e
S PO w i t h a common b a se f o r eva l u at i ng p roposa l s .
To th i s end , common
cost est i mate s t r uct u re i n s t ruct i o n s a re i s s ued i n t h e R F P .
For
:i
examp l e , a l I con t ra c tors a re re q u i red to p r i ce t a s ks dete rm i n ed b y the
S PO .
These ta s ks a re b a s e d o n s umma ry l e ve l s o f t h e PE RT/Cost wo rk
b rea kdown s t r u ct u re wh i ch i s d i rect l y re l ated to the h a rdw a re s p ec i f i cat i o n t ree .
S p ec i f i c atte n t i on i s d i rected to the i n te r re l a t i on -
s h i p s o f ac t i v i t i es to e n s u re t h a t req u i reme nts s p ec i f i e d i n t h e RFP
a re i nteg ra ted to p rod uce a comp re h en s i ve p ropos a l .
t racto r re v i e w a n d expa n s i on o f the mate r i a l
n ot i m p l y a c h a ng e o f req u i rements .
Req uests f o r con-
i n c l uded i n the RFP does
I t doe s reco g n i ze t h e pote n t i a l
s i g n i f i c ant i m p roveme n t s wh i c h c a n be made b y the i n d u s t r i a l compet i t i ve e n v i ronment .
An i n i t i a l a ct i v i t y b y t h e cont ra cto r i s the rev i ew of re q u i reme nts conta i n e d i n the work stateme n t f o r t h e p u rpose of de l eg a t i ng
re s pons i b i l i t i e s to va r i o u s d e p a rtme nts w i t h i n h i s organ i z at i on a n d
74
I
I
I
.I
�
J
for ve r i f y i ng t h e req u i reme nts conta i ne d i n t h o w o r k stateme nt aga i n st
h i s tec h n i ca l and ma n ageme nt exper i e n ce and capa b i
I
i ty to meet the re-
q u i reme n ts .
Fo l l ow i ng the work statement rev i ew , the cont ractor con d u cts a
c r i t i ca l rev i ew of the f u nct i on a l f l ow s a n d a n a l y s e s d a ta i n c l u d e d as
p a rt of the work stateme n t .
I n t h e p rocess o f rev i ew , a n expa n s i on
a n d mod i f i cat i on e f fort w i l I b e req u i red to en s u re that the cont racto r ' s a p p roach and tech n i ca l expe r i en ce a re c l ea r l y re f l ected i n
these f l ows .
A l te rnate f l ow s to ref l ect a l te rnate modes of operat i on
a n d poss i b l e t rade-of f s w i
I I
t i on s a n d expans i on s w i
b e m a d e t o the a n a l y ses d a t a f o r t h e p u rpose
I I
a l so be i nc l u d e d .
A dd i t i ona l mod i f i ca -
o f i de nt i f y i n g the des i gn requ i rements i n p e r f ormance terms .
p a ns i on e f f ort w i
I I
·I
:
T h i s ex-
be cont i n uous t h roug hout the con tractor ' s p roposa l .
I
. '
I n con d u ct i n g the l a tte r e f fo rt , t h e cont racto r s hou l d estab l i s h
p roced u res f o r ens u r i ng a c l osed- l oo p re l at i on s h i p between t h e f l ow s ,
des i gn req u i remen ts appea r i ng i n the s p ec i f i cat i on , the wor k b re a kdown s t ru ct u re , t rade-o f f e f forts , a n d cont ract act i on s nece s s a ry f o r
p re p a r i n g t h e f i na l p roposa l .
The capab i l i ty o f the cont racto r to
ma i nta i n th i s re l at i on s h i p w i l l s i g n i f i ca n t l y ref l ect t h e comp rehens i veness a n d va l i d i ty of the f i n a l report .
Du r i n g P h a s e l A , t h e most f u n d amenta l a n d c r i t i ca l act i v i ty req u i re d of the cont ractors b y the RFP i s the p rov i d i ng o f p re l i m i n a ry
f i rs t l e ve l e n d i tem deta i I spec i f i cat i ons w i th i n the i r p roposa l .
. '
I
T hese s pec i f i ca t i ons a re t h e n a rrat i ve desc r i pt i ons , i n te rms of p e r f o rmwnce req u i rements . i dent i f i ed i n the spec i f i cat i on t ree .
Each
75
:I
H a r d w a re e n d i t em deta i I s p e c i f i c at i on must i n c l u de test data to
dete rm i ne q u a n t i t at i ve a n d q u a l i t at i v e comp l l a nce w i t h t h e p e r f o rmance
req u i reme n t s .
A f t e r t h e p roposed s p e c i f i c at i on t ree a n d t h e p roposed tec h n i c a l
a p p roach a re def i n ed by t h e cont ract , a p roposa l wo r k b rea kdown st ruct u re i s p re p a red f rom the p re l i m i n a ry wo r k b reakd ow n st ruct u re .
The
p ropo sa l wo rk b rea kdow n s t r u ct u re i s eq u i va l en t to the spe c i f i cat i o n
t ree i n the h a rd w a re a n d equ i pment I i n e .
I t i s , howev e r , mo re com-
p re h e n s i ve t h a n t h e spe c i f i c at i o n t ree s i n ce i t i n c l u des i tems of s e rv i ce i n a d d i t i on to t h e eq u i pme n t I i s ted i n t h e s p ec i f i ca t i o n t ree .
T h e p ropos a l work b r eakdown s t r u ct u re i s t h e b a s i s f o r t h e con t r actors
to p re p a re cost est i mates for s p ec i f i e d e l ements of t h e RFP , comp a r a b l e cost e s t i mates w i I I t h e n be rece i v ed o n i de nt i ca l t a s k s f rom e a c h
b i dde r a n d i n i de n t i c a l f o rmat a s req u i re d by PE RT/Cos t .
S UMMARY
I t can re a d i l y be see n t h a t t h e re i s a g re a t dea l of p re l i m i n a ry
cu stome r act i v i ty l e a d i ng to the a w a rd of P h a s e I B co n t ra cts .
T h e S PO
a n d t h e v a r i o u s s u p p o rt i ng gove rnme nt age n c i e s p re p a re a n umber of
p re l l m i n a ry p l a n s a n rl s p ec i f i c at i on s f o r tho i n tended system .
As
s h ow n i n F i g u re 6 th i s e f f o rt t a kes a p p rox i mate l y e i g h t mon t h s b e f o re
a con t racto r ' s p ropos a l
i s s u b m i tted a n d eva l u a ted .
M u c h o f t h o work p e r f o rme d by t h e c u stome r i s nece s s a ry a n d of
dou bt l e s s va l u e .
�
T h e i mportant po i n t , howeve r , i s t h a t t h e p re l l m i -
na ry p l a n s , s p e c i f i c at i o n s , et c . , deve l op e d u n i l ate r l y by t h e gove rnme nt may become ' c a s t i n co n c rete ' and d i f f i cu l t to c h a n ge . S p e c i f i c a l �,
76
i n the c a s e of t h e custome r o r i ented p rog ram wo r k b rea kdown s t r uctu re ,
c o n t racto r comp l i a nce may be i mposs i b l e or at t h e ve ry l e ast u n wo r kab l e
i n p ract i c e .
The S ect i o n I n dex Co ncept d i s c u s sed i n C h a pt e r I V i s a
c a s e i n po i n t .
From t h e c u stome r ' s v i ew po i nt h i s po s i t i o n o f requ i r i n g a commo n
b a s i s f o r eva l u at i o n i s u n de rsta n d a b l e .
Hence , i t a p p ea rs t h a t s ome
deg ree o f n egot i a t i o n m i g h t be requ i red to deve l o p t h e opt i mu m wo r k
b rea kdown s t r u ctu re s u i ta b l e f o r both p a r t i e s .
Wo rk b rea kdow n s t ru c -
t u res s i m i l a r t o that s hown i n A p p e n d i x B h a v e b een deve l o ped b y a
n umbe r of comp a n i e s b a s ed on t h e i r i n d i v i d ua l cost est i ma t i n g a n d re tr i eva l p h i l oso p h y .
The c u s tome r m u s t be awa re o f the p rob l ems w h e n
d i ctat i ng a p a rt i c u l a r wo rk b rea kdow n st ructu re to b e a d h e re d t o b y
a l I con t racto r s .
I t i s one a rea w h e re a f o rma l i zed P roj ect De f i n i t i o n
Ph a s e c a n u n doubted l y a l l ev i ate a ny m i s u n de r s t a n d i n g a s to t h e content
o f the wo r k stateme nt a n d a s soc i ated costs .
77
CHAPT E R V I
CONTRACTOR DE F I N I T I ON
The most s i gn i f i ca nt p o rt i o n of the e nt i re Def i n i t i on Pha s e
w i I I be accomp l i s hed d u r i ng contracto r def i n i t i on .
The p rev i ou s
cha pter desc r i bed i n some deta i I the scope a n d ma gn i tu d e of the e f f o rt
performed by the c u s tome r .
Phase I B represents that p e r i od o f t i me
where the contractor i s expected to g reat l y exp a n d a n d amp l i f y on the
cu stome r ' s p rev i ou s work .
A major e f f o rt o f the Phase w i I I be to con d uct s ystem t ra de-o f f
stud i e s a n d ana l y s es t o ens u re that tota l system i mpact of a l te rnate
tec h n i ca l a p p roaches i s a con s ta n t con s i de ra t i o n , the data ema nat i ng
f rom the system e ng i nee r i ng w i t I be used a s the bas i s for trade-o f f
· ( t i me-cost-performa nce , i nc l u d i ng h u ma n pe rforma nce ) eva l uat i o n s .
As
dec i s i o ns a re reached re ga rd i ng t rad e-of f s , they must be re f l ected i n
the def i n i t i on data .
Where req u i rements d i ctate that a l te r nate de-
ve l opme nt e f f o rts a re neces s a ry , p a ra l l e i a n a l yses w i I I ref l ect these
ef fort s u nt i I s uch t i me as s u f f i c i e nt data a re ava i l a b l e to j u st i fy a
s e l ected a p p roach .
" Des i g n Freez e "
An i n teg ra l p a rt of eng i neer i n g a nd system d e f i n i t i on i s the
dete rm i nat i on of the ha rdwa re end i tems of the M i s s i l e ( ma t r i x
n umb e r 2 . 0 ) , G ro u n d S u p port Equ i pme nt ( mat r i x n umber 3 . 0 ) , fac i I i t i es ,
78
a n d pe rson ne l req u i red .
The re s u l ts o f des i gn e f f o rts a n d t rade-o f f
The se l ect i on of equ i p -
s tud i e s p rov i de the b a s i s f o r th i s a c t i v i ty .
me n t , f a c i I i t i es , a n d pe rson ne l i s then t rans l ated i n to a ha rdwa re
spec i f i ca t i on t ree .
The act i v i ty , i n p repa r i n g the spec i f i ca t i o n t ree , i s re l a ted i n
a f u n d ame nta l ma n n e r to , a n d must be depen d e n t o n , the dete rm i n a t i o n
of t h e h a rdwa re e n d i tems .
The con f i gu ra t i on ma nagement p rebase l i ne
p roce d u res i s s ued w i l I i n c l u de the con t ro l of the spec i f i cat i on tree
for the system .
The apex of the s pec i f i ca t i on tree i s th e system
pe rformance/des i g n re qu i rements spec i f i cat i on .
The b ra n ches of the
t ree a re deve l o ped f rom the k now l e dge ga i ned by the cont racto r f rom
the spec i f i ca t i on t ree s u b m i tted i n the i r p roposa l s , as we i I as the
e n d i tems a n d f a c i l i t i es so i den t i f i ed .
The tree must i n c l ude the
system s pec i f i cat i on and a t I the l eve l s of end i tem deta i I spec i f i cat i on s .
The s pec i f i ca t i o n t ree i s the b as i s for the end i tem s u b-
d i v i s i on and the s u bsequent wo rk b rea kdown s t ructu re for PERT/Co s t ,
a n d d e p i c ts those documents wh i ch w i I I b e used for acce pta n ce o f
equ i pme n t fo r th e tota l system .
A n a l y t i c a l e ng i ne e r i n g e f fort con sume s mos t o f t h i s cont ract
per i o d .
A t some po i nt i n t i me , howeve r, i t i s necess a ry to e s tab l i s h
0 '
•
w h a t i s common l y known a s a "des i g n f reeze . "
:. !
Th i s i s when ove ra l l
des i g n pa ramete rs , a n d the system con f i g u ra t i ons a re esta b l i s hed .
Th i s norma l l y occu rs about seve n weeks p r i o r to p ropos a l s u b m i tta l .
Se l ected Ph ase IB eve nts a re dep i cte d i n F i g u re 7 , page 80 ·
a
l on g e r Project Do f l n l t l on Phase tho ro
79
a rn
Fo r
u s u n l l y ro l to ra t l vo cyc l e s ,
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S E l E C T E D C O N T R A C T O R P R OJ E C T D E F H \ H T I O N P H A S E E V E N TS
(CUSTO M ER P HASE 18)
WEEKS PRIOR TO SUBMITTAL
DESIGN P A R A M ET E R S ESTAB ll S H E D
& SY STEM C O N F IG U R A TI O N F R O Z E N � .
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e . g . , a des i g n f reeze . a n d t h e n an e n g i ne e r i n g est i mate , ma n u f a ct u r i n g
e s t i ma te , etc .
The s c h e d u l e o f e v e n t s s h ow n i s q u i te op t i m i s t i c a n d
I
.
se I d om t h e case 1 n ac t u a I p roposa I a c t .1 v .1 t y .
W h a t th i s me a n s ,
i n e s s e nce , i s t h at e n g i nee r i ng must s top de-
f i n i n g and re f i n i ng the system and start p re p a r i ng the fo rma l p roposa l .
T h i s e n t a i I s a r r i v i n g at pos i t i ve a n swe rs i n o r de r that the
I
I
oth e r comp a n y o r g a n i z at i o n s can f i n i s h t h e i r p o rt i o n o f the p roposa l .
For examp l e , ma n u f a c t u r i n g p e rsonne l must h a ve t h e h a r d w a re q u a n t i t i e s
estab l i sh e d i n o rde r to deve l o p a ma n u f a ctu r i ng f l ow c h a rt a n d p roduct i on p l ans .
I
: I
The too l p l a n ne rs can not deve l op a req u i re d l i s t of
too l i n g f a c l l i t i e s u nt i I u s age rate s have been e s t a b l i s h e d b y ma n u f ac t u r i n g .
T h e l o g i s t i c s u p po rt o r g a n i z at i o n can not comp l ete t h e
ma i nte n a n ce or re l i ab i l i t y p l a n o r dete rm i ne s p a res w i thout a deta i l ed s c h e d u l e and l o cat i o n o f m i ss i on depot s .
Th i s i s not to s a y
t h a t t h e s e o t he r f u nct i o n a l de p a rtme nts a re at a s t a n d - s t i I I u nt i I
the de s i g n f reeze ; t h e ma j o r i ty o f t h e i r e f f o rt , no matt e r w h a t the
p rog ram , occ u rs w i t h i n we i I def i ned bou n da r i e s .
Howeve r , e n g i ne e r i ng
must de f i n e a n d e s t a b l i s h t h e p a rt i c u l a r req u i reme n t s f o r each p rog ram .
The e n t i re ' to n e ' o r p h i l o sop h y of the p roposa l m u s t f i r s t b e
e s t a b l i s h e d b y eng i nee r i ng a n d t h e n amp l i f i e d by t h e ot h e r comp a n y
o rg a n i z at i on s .
'
" I f you h a ve wo rked on p ropo sa l teams you a l re a d y h a ve a good
i dea o f the con f u s i on t h a t re i g n s d u r i n g a typ i c a l t h i rty -day p roposa l
a ct i v i ty . T h e p ropos a l l ea d e r
h a s e l ected to ed i t , chop , re­
f i n e , rew r i te , a n d re a r range re ams of d i sco nt i n u i ty i n to a re a d a b l e
p ac k age i n a c ra s h e f f o rt to mee t t h e p r i n te r ' s dead l i n e , " A u s t i n
McHu g h , J r . , Ma n a ge r o f P ro d u c i b i l i ty E n g i nee r i n g f o r Gene ra l E l ect­
r i c s ' De f e n s e S y s t em Oep t . , Ae ros pace Ma n a geme n t , J a n u a ry 1 9 63 , p . 49 .
.
•
81
.
::
,
I
,
Gene ra I 'tlo rk S ta te me n t a n d G ro u n d R u I es
A s state d p rev i ou s l y , mo s t o f the Ph ase I B i s con su med b y a n a l yt i ca l e n g i nee r i n g p e rson ne l d e f i n i n g t h e s ystem.
For a new p rogra m ,
t hey w i I I b e p r i ma r i l y f rom e i t h e r Adva nced Wea pon s E n g i n ee r i n g o r
Advanced S pace E n g i nee r i n g . I
Du r i n g Phase I B t h e e n g i nee r i n g e f f o rt
w i l l g ra d u a l l y sh i ft f rom these advance e n g i n ee r i n g organ i za t i o n s i n
o rder t h at a t deve l opme n t p rog ram i n cept i on , the work i ng p e rson ne l
w i l I b e i n Wea pon S y s tems E n g i nee r i n g .
When the ove ra l l des i gn con f i g u ra t i o n i s s o l i d i f i ed , the eng i nee r i ng p roject o f f i ce i s s ues a gen e ra I work s ta teme n t to the ot h e r
a f fected contracto r dep a rtme nt s .
Th i s gen e ra l wor k s t a teme n t de-
l i n e a tes the res u l t of the e n g i nee r i n g i nves t i ga t i ons and deve l opment
p rog ram a s s u mp t i o n s , ha rdw a re I i s ts . and a n o ut l i ne of the deve l op me n t p rog ram e f fort .
The oth e r de p a rtme n ts h a ve been wo rk i ng c l ose l y w i t h e n g i ne-
. I
'
'
e r i n g ; th i s comp rehen s i ve doc u me n t e n s u res that the tota l e n g i n e e r i n g package i s i n conce rt a n d t h a t the o th e r depa rtmen ts a t I h a ve
the same i n fo rmat i on .
ma n u f actu r i n g p l an , a l og i s t i c p l an , a te st p l a n , etc . , f o r the
deve l opment p rogram.
I
.,
These othe r agen c i e s i n tu rn w i l I p rep a re a
These p l a n s a re an exp a n s i on u pon those p re-
p a re d b y the c u s tome r d u r i n g Phase l A .
The l a tte r p a rt o f Phase I B i s i n the deve l o p me n t p ro g r a m p ropos a l p repa ra t i on pe r i od .
The a c t i v i t i e s o f th i s pe r i od a re s i m i J a r
1 Re fe r to F i g u re 3 , p .
82
' ]'
'
;
�.·
(
iI
I
I
l,'i
II
�
to t hose des c r i bed i n the p receed i ng c h a p te r for t h e i n i t i a l p roposa l ;
the re a re , howeve r , some i m po rt a n t d i st i n c t i o n s .
T h e rema i n de r of
t h i s c h a p ter i s devoted to an a n a l ys i s of t h e s e d i s s i m i l a r i t i es w i t h
res pect to t h e i r re l a t i o n s h i p to the co n t racto r ' s e n g i neer i n g acco u n t a b i l i ty sys tem .
li
i
II
Wo rk B rea kdow n S t r uctu re Estab l i s h e d
I t w i I I b e remembe red t h a t t h e c u s tome r h a s p re p a red h i s i nte r-
I
�
p retat i o n of t h e deve l o pme nt p rog ra m work b rea kdown s t ructu re d u r i ng
Ph a s e l A .
�
, ,,
I
Th i s s t ructu re may or ma y not b e a p p l i c a b l e to t h e con-
t r acto r ' s s y s tem o f eng i nee r i n g accou n t a b i l i t y .
I t i s c e rta i n l y
co n ce i va b l e t h a t u n l es s i t s h ows j u s t t h e top l e ve l , i t wou l d not f i t
eve ry contractor ' s s ys tem .
W h e n t h e co n t ractor s u bm i ts h i s p ropos a l
fo r P h a s e I B he i s not conce rned w i t h wo r k b r ea kdow n s t ructu res s i nce
t h e e f f o rt i s cons i d e red atyp i c a l to the no rma l e n g i nee r i ng e f fo rt . 1
T h e w o r k s t ateme n t f o r P h a s e I B i s neces s a r i l y b roa d i n sco p e ,
it
i s , i n e s s e nce , p a ra p h ras i ng t h e c u stome r ' s req u i reme nts w i th t h e
a mou n t o f exp a n s i on I i m i ted to t h e cont racto r ' s p a s t a p p l i c a b l e exper i ence .
Th i s i s norma l l y the c a s e s i nce at t h e i n cep t i o n of P h a s e
1 8 t h e c u stome r i s more k now l ed gea b l e o f t h e tota l sy stem .
Anot h e r
re a s o n t h a t t h e con t racto r does not conce rn h i ms e l f w i t h a P h a s e I B
work b re a k d ow n s t ructu re i s t h a t Ph a s e I R i s u s u a l l y a f i xed p r i ce
cont ract w i t h the s pe c i f i c f u n d i ng l i m i ta t i o n k nown i n adva nce .
Hence , t h e wo r k stateme n t f o r Ph a s e I B must b e t a i l o re d to meet the
I
Re f e r to F i g u re 4 , p . 38 .
83
�
'
a va i I ab I e do I I a rs .
Du r i n g Phase I B , the co n t ra cto r mu s t estab l i sh a work b re a k dow n
s t ru ctu re f o r the deve l o p me n t p ro g ram .
I t has been noted that the
c u s tome r h a s a l rea dy u n i l a te ra l l y estab l i s h e d h i s i nt e rp re ta t i on of
how the p ro g ram b re a k s dow n .
D u r i n g Phase 1 8 the con t ra cto r a n d the
c u s tome r mu s t ex p a n d , re f i ne , a n d mutu a l l y a g ree upon the common work
b rea k dow n s t r u c t u re .
p rob l em a re a ;
W i th i n each new s y s tem the re ex i s t s a p o te n t i a l
i . e . , the dete rm i n a t i on o f how the tota l wo r k e f f o rt
w i l I be b ro ke n dow n for PE RT/Co s t p l a n n i n g , e s t i ma t i n g , an d re p o rt i n g
p u rposes .
For examp l e ,
I n s t rument a t i o n ( mat r i x n u mbe r 6 . 0 , A p p e n d i x 8 )
n o rma l l y a h i gh cos t a rea f o r the typ i c a l deve l o p me n t p rog ram .
The re a re , i n e s s e n ce , two k i n d s of i n s t ru mentat i on :
is
I
( I ) th a t w h i c h
i s a n i nte g ra l p a rt o f the man u f a c tu r i n g p roce s s , i . e . , s t ra i n g ages
we l ded to b ra c ke t ry , the rmoco u p l e s i mbeded i n the s k i n , e tc . , a n d ( 2 )
t h a t wh i ch m i g h t be te rmed a n " i n s t rumentat i o n k i t " , i . e . , de l i ve ra b l e
h a rdwa re e n d i tems that can be s e p a r a te l y t ra n s p o rted , i n s ta l l e d , o r
remove d a s des i re d .
Th i s m i g h t i n c l u de a n a co u s t i c reco rd i n g de v i ce
o r a te l emet ry a n te n n a .
w i I I p u rchase a l l
Typ i ca l l y , the weapon s y s tem p r i me con t ra cto r
i n s t rume n ta t i o n C o r i n s t ruments ) f rom a l a rge n u m-
be r of s u b- co n t ra cto rs a n d s u p p l i e r s a n d, hence , the b a s i c p u rc h a se
p r i ce i s ava i I ab l e by i n vo i ce .
.
I May a p p rox i mate twe nty to th i rty per cent o f the tota l o f raw
mate r i a l s a n d p u rch ased p a rts .
84
The p r i me co n t racto r , howeve r , a d ds va l ue to th i s i n s trument at i on i n the f o rm of re ce i v i ng te sts a n d deve l opment te sts , ass emb l y
e f fort f o r i n sta l l a t i on a n d checko u t , a n d des i g n g ro u p e f f o rt for
p repa r i ng schema t i cs and p roc u reme n t s pec i f i ca t i o n s .
I n o th e r wo rds ,
the re i s a d i rect l a bo r expen d i t u re th at i s app l i cab l e a n d s h o u l d be
a p p l i ed to the i n st rume n t a t i on p u rc h a s e p r i ce .
I t w i I I b e see n f rom Appen d i x B th at a l though a l I i n s t rumentat i on
i s g rouped u n de r ma t r i x n u mbe r 6 . 0 , the g roup i n g i s q u i te a rb i t ra ry
a n d on l y f o r the c u s tome r ' s benef i t .
The en g i nee r i n g d i rect l ab o r
cos t a s soc i a te d w i th bas i c i ns t rumenta t i on i s rea l l y nons epa rab l e f rom
othe r m i s s ! l e e f fort, mat r i x n u mbe r 2 . 0 .
The l a rgest con t r i b uto r to
th i s e f fo rt a re S t r u c tu res - 1 0 1 , a n d the e n t i re E l ectron i cs b ra n c h
-1 10.
Bas i c i n s trumen ta t i on i s a n i n te g ra l p a rt o f the m i ss i l e de-
s i g n p rocess a n d i n c l uded on the typ i ca l e n g i nee r i n g sect i o n I i s t
b re a k down .
Howeve r , i t must be remem be re d th at when the n umbe r o f
ch a rge va r i a t i o n s app roaches f i ve o r s i x , the d e g ree o f a ccu racy i n
the t i me cha rge ra p i d l y d i m i n i s hes .
The comp rom i s e th at i s usu a l l y
made i s to estab l i s h an " i n st rume n t at i o n i nsta l l at i on " sect i on I i s t
•,
r..
n umbe r f o r each s u bsystem o r sect i on of the m i s s i l e .
Th i s red uces
the n umbe r o f pos s i b l e t i me c h a rges f rom many h u n d red to u n de r te n .
K i t i n s t r umenta t i on re p resents a s l i g h t l y d i f fe rent p rob l em i n
th a t f o r a deve l opment p ro g ram, the f i rst poss i b l e twe n ty - f i ve o r
f i f ty tes t f i r i n gs w i I I u n dou bted l y co n t a i n a my r i ad of data req u i reme nts u t i l i z i n g h u n d reds of d i f fe rent h i g h cos t i n struments .
f'
�.
L
The
c u s tome r , q u i te u n de rs t a n d a b l y , wants to kn ow th e i n s trume n tat i on
85
cos t pe r m i s s i l e f l i gh t .
The p rob l ems o f con t ractor comp l i a n ce w i th
th i s req u e s t a re con s i de ra b l e : ( I ) the t i me cha rqe va r i a t i on s f o r
e a c h a n d eve ry k i t , ( 2 ) va r i ous k i ts a re used on d i f fe rent f l i g hts
a n d the same k i t on more than one f l i gh t , a n d ( 3 ) on k i t i n s t rumentat i o n non - des i gn g roups such as Gu i dance and Co n t ro l - 2 1 I , and S i mu l at i on Systems -2 1 4 , have the p redom i n a n t port i on o f the e f fo rt a n d
they a re on l y req u i re d to c h a rge the i r t i me to the tota l m i s s i l e .
The p rob l em o f a r r i v i n g a t a n a cce p ta b l e common work b re a k down
structu re betwee n th e c u s tome r a n d the con t racto r i s o b v i ous l y not
i ns u rmo u n ta b l e .
A p p e n d i x B has taken ove r a yea r of deta i l e d coo rd i -
n at i on between depa rtments w i th i n j u s t one comp a ny .
A d d to th i s
spec i f i c custome r req uests a n d i t ca n read i l y be seen th at i t i s a n
a rea not to be t a ke n for g ra n ted .
F a r too ma n y man a ge rs w i l I s ta te
' p repa re a work b re akdown st ructu re ' , w i thout the f a i n test i dea of
the magn i tu de of the req ue s t .
The wo rk b re a k dO\<J n s t ructu re i s t h e co rne rs tone f o r p l a n n i ng ,
es t i ma t i ng , re po rt i n g , work a u t h o r i za t i on , PERT netwo rks , a n d maste r
schedu l e s .
I t i s the f i rs t a n d by f a r the most i mpo rta n t a ct i v i ty
that has a d i rect be a r i n g on j u s t e xact l y how the p rogram w i l I be
ma n a ged .
I t i s a nonte ch n i ca l a ct i v i ty i n the sense tha t th e re i s no
I
'l
re l at i on s h i p between i t and the tec h n i ca l capab i I i ty i n des i gn i ng a
gu i d a n ce ra te gy ro .
I t i s te ch n i ca l i n t h e sense o f be i n g b ased o n
a� u n derstan d i n g o f w h a t a n en g i nee r does i n re l at i on to the tota l
I
!
p rogram.
I'
86
T a s k P l an
The work b re akdown s t ru ct u re i s the s pec i f i c f ramew o r k f o r th e
ent i re weapon s y s te m ; the t a s k p l an i s the p rose t hat s i zes o r e s ta ­
b l i shes an enve l op e a ro u n d t h e tota l ef f o r t .
T h i s b oo k conta i n s
tech n i ca l l y def i n i t i ve statemen ts o f i n te nt , h a rdwa re q u a n t i t i es ,
te s t s c h ed u l es
an d req u i reme n ts , depa rtmenta l m i l e s tones , e tc .
i s the s i n q ! e docu ment that descr i be s e xact l y what i s i nvo l ve d .
It
The
tas k p l an i s a d i rec t res u l t o f t he wo rk b re a k down s tructu re a n d the
p a ra g r a p h s a re d i rect l y i de nt i f i e d to the mat r i x n umbe rs , e . g . , mat r i x
n umbe r 2 . 1 . I i n A p p e n d i x 8 c a l I s o u t th e e n g i neer i ng s e ct i on s i n ­
vo l ved w h e reas the tas k p l an p a ra g ra p h 2 . 1 . 1 w i l I de l i ne a te t h e e f fort
b y d e p a rtment a l n umbe r .
The i n i t i a l tas k p l an i s p re p a re d b y Es t i mate s a n d Budgets -42 1 ,
a n d i s based on t h e gene ra l wo r k s ta te ment , e n g i neer i ng memoran dums
a nd reports .
These tas k desc r i p t i ons f o r e n g i n ee r i n g a re the bas i s
o f the PERT/Cos t netwo r k s , cos t e s t i mate s , and s ub s e q u e n t re port i n g b u t o n l y fo r a port i on o f the tota l p ro gram.
I t w i t I b e rememb e re d
f rom C h ap te r I I I that e n g i n ee r i n g p e rson ne l a re u n a b l e to p l an i n de­
tal
I
the e f fo rt s u bseq uent to i n i t i a l re l ease .
T h i s i s a l so re f l e c ted
b y the work b re a k down s t ruct u re i n A p p en d i x 8 , matr i x n umbe r 2 . 1 . 2 .
Hen ce , i t can b e seen t h a t th e re w i l I b e p a rag rap h s i n the tas k p l an
th a t can not be te ch n i ca l l y def i n i t i ve s tateme nt s o f i nten t n o r u pon
wh i ch PERT networks c a n be based .
The typ i ca l tas k p l an pa r a g ra p h s
2 . 1 . 2 w i l I s a y I i tt l e more th a n i s a l ready s hown i n t h e work b re a k­
dow n s t ru ct u re mat r i x n u mho r ? . I . 7 .
Th o cost for th i s b l oc k , h oweve r ,
' ;
.I
87
w i I I be cons i de r� b l e a n d m u s t be s u b s ta n t i a te d i n s ome man n e r ; th i s
i s t h e s u b ject of the fo l l ow i n g sect i on , E n g i nee r i n g Hou r E s t i mate s .
Wh i l e the tas k p l an i s i n p re p a ra t i on b y the p roject o f f i ce , e n g i nee r i n g p e rson ne l mus t p re p a re a tech n i ca l re po rt fo r t h e deve l opme n t
p ro g ra m p ropos a l .
A po i n t t h a t m u s t be made h e re i s the d i f fe re n ce
betwee n the tech n i ca l a p p roach ve r s u s the t a s k p l an .
T ra d i t i on a l l y , a ! I t h a t e n g i neer i n g h a d to do , f i g u ra t i ve l y
speak i n g , w a s p repa re a tech n i ca l
' adve rt i seme n t ' .
Th i s i s no l on ge r
the case ; a det a i l e d s p ec i f i c tas k p l an i s now o f a t l ea s t equ a l i mport a n ce :
"Wh en th i s b u s i ness was you nge r , a n expert o b s e rve r of
weapons s y s tems p rog rams to l d M/S D a i l y recen t l y , DOD
b uye rs of te n spoke w i th scor n o f t h e ma rket i n g man ' s
works : ' P i ck a p rob l em , a n y one a t a l I a n d ou r new
deve l opment w i l l so l ve i t , ' o r w h a t the obse rve r te rme d
the ' you n ame i t , we ' l l manage i t schoo l of s e t l i n g to
the m i l i ta ry . 1 Though th ese a tt i t udes a re s t i l I a rou n d
the i n d us t ry as a wh o l e i s o u t g row i ng them t h e sou rce
be I i eves . 11 I
11The A i r Fo rce u n d e rs e c retary w a rn e d i n d us try a ga i n st
s u b st i tu t i n g ' B roch u remansh i p ' i n p l a ce o f so l i d f act
a n d a n a l yses . O fte n i n d u s t ry h a s o f f e red p roposa l s
a p p ea l i n g to f a ct i on a l amb i t i on s a n d u l te r i o r des i res
o f i n d i v i d u a l s i n the Gove rnme n t . 11 2
T h e e n g i nee r i n g o rga n i z at i on now i s f a c e d w i th two s i m i l a r
p rob l ems :
( f ) that of p rep a r i n g the tech n i ca l
a p p roach ; a n d ( 2 )
t h a t o f p re pa r i n g a de f i n i t i ve task p l an f o r man a g i ng t h e deve l opment
1 11M/S I n d u s t ry - Gove rnme n t Pe rspect i ve s S h i ft i ng " , M i s s i l e /
Sp ace D a i l y , Decembe r 2 , 1 96 3 , p . 1 1 4 .
2 "Mc M i I I an C i t i es R&D S av i n gs , P i tf a l l s o f ' De f i n i t i on Phase , '
� i s s i l e/ S p a ce Da i l y , Novemb e r 1 8 , 1 96 3 , p . 38 .
88
p ro g ram :
" Ta l k i n g f rom a compet i t i ve
a t a tech n i c a l
p ro p os a l
p o i n t o f v i ew , w h e n we
f o r a g i ve n
l oo k
i te m , t h e te ch n i c a l
k now-hovJ o f t h e comp an i e s i s ve ry c I ose b u t we see th at
some comp a n i e s a re mu c h more c a p a b l e of manag i n g e f f e ct­
I
i ve l y th a n o t h e rs .
th i n k vm w i I I
be p u tt i n g more a n d
mo re we i gh t o n th i s ma n a geme n t cap a b i l i ty
i n t h e f ut u re
'
i n s o u r ce s e l e ct i o n , t h a n o n the te ch n i ca l " .
Th ese two req u i reme n ts
d i f f e re n t d i s c i p l i ne s .
req u i re the w o r k i n g e n g i nee r to a p p l y two
Th i s
i s beca u s e the ta s k p l a n ,
n a t u re ,
ma kes v e r y poo r rea d i n g .
l og i ca l
ma n ne r ;
T h e t a s k p l a n does
e . g . , t h e tech n i ca l
not f l ow
in a
p re v i o u s tes t i n g
f u t u re a re a s of exam i n at i on , etc . , w h e re a s t h e t a s k p l a n
conta i n s on l y the
p ro p os a l ,
i ts ve ry
a p p ro a c h f o r t h e m i s s i l e wo u l d
b r i n g i n p a s t exp e r i e nce , des i g n j u s t i f i ca t i on ,
ad v a n ces ,
by
'what'
the t y p i ca l
a n d man ageme n t con t ro l
o f the s yste m .
Wh e n p re pa r i n q th e tech n i ca l
e n g i nee r i s not conce r n e d 1v i th acco u n ta b i I i ty
to be
i mp o s e d a f t e r co n t ra ct awa r d ;
he
i s h ow-
eve r , v i ta l l y conce r n e d w i t h w i n n i n g the con t ract a n d h e n ce h e p ro cee d s t o w r i te t h i s tec h n i ca l
a d ve rt i s e me n t .
I t i s d i f f i cu l t to con -
vey t h e s u b t l e d i f f e re n ce betwee n t h e tec h n i c a l
p l an ;
se l l
v e rs u s t h e t a s k
t h e f o l l ow i ng e xamp l es m i g h t c l a r i f y :
Tech n i ca l
" Th e n um b e r o f s p ec i a l
P ro p os a l
ty p e s o f a n y compo n e n t w i l l
be
ke p t to a m i n i mu m b y u t i l i z i ng a common compo n e n t ty p e
t o p e rf o rm a s many re l a te d f u n ct i on s a s f e as i b l e . "
1
F rom a n
i n te rv i ew a n a l ys i s w i th M a j o r Gene ra l
b y Ph i I i p G e d de s ,
W . A u s t i n D av i s ,
" P ro b I ems a n d P ro g re s s - A M i I i ta ry V i ew " , A e ro ­
s pace M a n a geme n t , J u l y
1 96 3 , p .
44 .
89
i
I
I
I
I
li
"Qu a l i f i ed sc i e nt i sts w i l I wo rk i n c l o se tec h n i ca l coo rd i ­
nat i o n w i t h equ i pment des i g ne rs to ach i eve opt i mum ma i n ­
ta i na b i I i ty . "
"Max i m um ef fort w i l I be expended on eq u i pment des i g n to
a s s u re ease of a s sessa b i I i ty , m i n i mum dow n t i me a n d
u n i nterru pted u t i I i z a t i o n . "
"Ca re w i I I be taken to a s s u re t h a t these comp rom i s es do
not re su l t i n a negat i ve t ra n s f e r of t ra i n i n g i n the
req u i red operat i o na l t a s k s . "
"The exact tec h n i que to be emp l oyed w i I I be se l ected
d u r i ng the deta i I des i g n of the m i s s i l e . "
"They w i l l be rep rod u ced i n s u f f i c i e nt deta i l to p rov i de
a rea l i s t i c compon en t . "
"Test j a c ks w i I I be p rov i d ed , w h e re ap p l i cab l e , for vo l tage
mea s u rement and a d j u s tme nt . "
Ta s k P l a n
" Pe rform th ree stage veh i c l e dynam i c a n a l yses for dete r­
m i nat i o n of body bend i ng mod es , s l os h i ng pa ramete rs , a n d
so l i d motor d y n am i c co up l i ng to des i g n co n t ro l system
s h a p i ng networ k . "
"Perf orm a c l osed g u i d a nce l oop sta b i I i ty a n a l ys i s to ver i f y
p i tc h a n d yaw rate g y ro l ocat i o ns . "
"Ca l c u l a te veh i c l e mas s c h a racter i sts a s a f u n ct i o n of b u r n
t i me . "
" Dete rm i ne temperatu re of he l i um a n d n i t roge n s p h e res a s
a f fected b y rad i a t i o n f rom s k i n a n d by rad i a t i on f rom
p l ume d u r i n g second stage powe red f l i g ht . "
These examp l e s h a ve been ta ken f rom a n umbe r of p roposa l s .
The
u nder ! i ned wo rds f rom the tech n i ca l a p p roach a re key nonta s k p l a n
types ; th ey ca n not be est i mated o r p r i ced w i th a n y deg ree of accu racy .
I t m i g ht be a rg ued t h a t j ust a s many examp l es of ta s k p l a n p rose c a n
b e fou n d w i t h i n t h e tec h n i ca l a p p roac h .
Th i s m i ght b e true - b u t not
a r ra nged or g ro u r e d i n to a conc i se wo rk b rea kdown struct u re that ca n
90
' I
I
'
"''
b e est i ma te d a n d p r i ced .
Retu rn i ng to the f l ow ch a rt ag a i n , i t i s see n th at the i n i t i a l
ta s k p l a n an d eng i nee r i n g quote g u i de i s noth i n g more than an es t i ma t i n g wo rk-s hee t w i t h t h e t a s k p l a n p a ra g raph n umbe rs dow n the l e f t
h a n d s i de a n d ca l enda r t i me a l on g the top .
Each g ro u p then es t i mates
i t s hou r u s aqe for the ap p rop r i ato e f fo rt i n the task p l an ove r the
ex pecte d t i me du rat i on .
Th i s i s common l y k nown as d i re ct est i ma t i n g .
\'/hen the se ct i ons re t u r n the i r comp l e ted q uotat i o ns , sta t i st i ca l
es t i mat i n g be g i n s .
E n g i nee r i n g Hou r E s t i ma te s
C h a p te r I I I ana l yzed the compos i t i on of t h e e n g i neer i n g o rgan i zat i on , and i ts v a r i ous s u b d i v i s i o n s of e f f o r t .
W i th that as a
foun dat i on i t i s nO\v a p p rop r i ate to exam i ne th i s u s a ge for e n g i nee r i n g l ea rn i n g cu rve ap p l i cat i o n .
A l ea rn i n g cu rve g i ves a stat i s t i ca l mea s u re of decreas i n g u n i t
cost w i th q u a n t i ty .
E n g i nee r i ng l ea rn i n g c u rves a re not app l i e d i n
the same f a s h i o n a s f o r man u f a ctu r i n g .
I t can b e s a i d for e n g i ne-
e r i nq tha t t h e re i s a n i n i t i a l ef fort to comp l ete the des i gn and then
eng i nee r i n g neede d d u r i n g t h e rema i n i ng p e r i o d of t h e ex i s t i n g con t ra c t to s u s ta i n i t ; h e n ce , P h a se I a n d I I .
T h e l e a rn i ng cu rve i s
the re l at i on s h i p of th e dec reas i n g amo u n t o f s u s ta i n i n g e n g i neer i n g
to the o r i g i n a l amount of e n g i nee r i n g ( s ee F i gu re 8 , p a ge 92 ) .
The
bas i c p ro g ram of v.JO rk i s d i v i ded i n to two p a rts - the ha rdwa re port i on wh i ch has l e a rn i ng cu rve ap p l i cab i l i ty a n d the non h a rdw a re o r
' softwa re ' port i on wh i c h does not h a ve l e a rn i n g cu rve ap p l i c ab i l i ty .
91
LEA RN I NG
APP LICABLE
PHASE
I
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EACH
S ET 1
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&
MAT R I X
.
.
PH A S
NO.
S U STA I N I N G
I
2 .0 ,
S U B DIV�S�ONS
3.0,
ENG'G.
4.0.
SUBS.
5.0,
TO
6.0
T1
P HA S E I I
N O N - D RA FT I N G
av:
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N O N - D R A FT I N G
G R O U PS
N O N - D RA F T I N G
I
BY D R A FT I N G G RO U PS
.l
EDC
Ts T x
r1
F I G U RE
8
I n a d d i t i o n , fo r the h a rdwa re sect i on s , i t has been dete rm i ne d th a t
mo re th a n o n e l e a rn i ng cu rve i s needed ; o n e for e a c h ma t r i x n um b e r
2 . 0 , 3 . 0 , 4 . 0 and 5 . 0 .
I n ut i l i z i n g the l ea rn i n g c u rve p r i n c i p l e a g reat dea l of s i g n i f i c a n ce h a s been a ttac hed to two k i n ds of en g i nee r i n g l abo r :
(I)
d r a f t i n g t i me C o r des i gn t i me o r boa rd t i me } wh i c h i s Ope rat i ons I ,
2 a n d 3 ; a n d ( 2 ) non d ra f t i n g t i me .
Reco rds a re kept on the run n i n g
re l a t i o nsh i p between these two for a l I h a rdw a re s ub d i v i s i o ns .
Th ese
va r i ou s re l a t i on sh i ps h ave bee n comb i ne d i n to the fo l l ow i n g h a rdw a re
est i ma t i n g f o rmu l a :
DRA FT I NG x N . D . F
Whe re :
=
T TD x l . C . F
1
MCL
E . D. C
= E n g i nee r i n g d ra f t i n g comp l ete .
S.E.T F
1
= S u s ta i n i ng e n g i neer i ng for T
T
1
DRA FT I NG
1
facto r .
= Tota l o f a l I d i rect d ra f t i ng t i me to
po i n t of de l i ve ry to f i e l d sta t i on of a
comp l ete u n i t .
N . D. F
= No n- d ra f t i n g f a c to r : rat i o o f tota l
d i re ct eng i nee r i n g to d ra f t i ng Ope ra t i o n s
I , 2 and 3 .
L . C . F.
= Lea rn i n g c u rve facto r : the q u a n t i ty f acto r
used to exten d T to T
1
x
MCL
= Ha rdw a re mat r i x n u mbe r ( 2 . 0 t h r u 6 . 0 )
w h i c h h as a separate N . C . F . a n d l ea rn i n g
cu rve s l ope .
T
= Tota l d i rect en g i nee r i n g for a cont ract .
X
TO
= Tot a l d i re ct en g i nee r i n g ma n hou rs .
Th i s l ea rn i n g c u rve a pp l i ca t i on , a l thou gh not an exact s c i e n ce ,
'
comp any e n g i nee r i n g op e rn t i n g p roce d u res .
93
·�
.
I
·r
i s a n acce p t a b l e p r i n c i p l e i n the a e rosp ace i nd u s t ry .
T h e very de­
f i n i t i on of est i mate i s to ca l cu l ate a p p rox i mate l y , to f o rm an op i n ­
i on , to g a ug e o r j udg e .
E ng i nee r i ng est i mates a re t h e f o rmat i on of
an op i n i o n b ased on j ud g ement a n d p a st expe r i ence ; to th i s extent
ma n y yea rs of l ea rn i ng cu rve a p p l i cat i on h ave been a b l e to red u ce
th i s j u dgement down to a sma l I f ract i on a ro u n d a b as i c mea s u r i ng d e ­
v i ce .
Th i s accu rate meas u r i ng dev i ce , a s d i s c u ssed i n Ch a p te r I V , i s
the cost of d r aw i ng s .
When the sect i on s ret u rn the i r h ou r est i mates to Est i mate a n d
B u dgets
-
4 2 1 , t h e y a re s u b j ected to these h i s tor i ca l
a n d f a ctors .
re l at i on s h i ps
Usu a l l y a number of est i mate s w i I I be made b y i n s e rt i ng
q u a n t i ty va r i ab l e s , test re l i ab i l i ty d at a , a n d s u c h s u b j ect i ve f act­
ors as m a y be neces s a ry .
At the t i me the sect i ons retu r n th e i r es­
t i mate s they s u bm i t t a s k des c r i p t i on memo ra n d um s for i n corpo rat i on i n
the t a s k p l a n .
At th i s po i nt i n t i me the re i s u s u a l l y a g reat dea l
of negot i at i on b etween t h e eng i neer i ng p roject of f i ce a n d t h o va r i ous
work i ng sect i on s w i th res p ect to t h e tas k d e s c r i pt i on s , va l i d i ty o f
the h i s tor i ca l d at a , t h e d i rect est i mate s u bm i tte d , a n d t h e ava i l a b i I i ty of c u s tome r f u n d i ng .
Obv i ou s l y , th i s i s
a
hect i c p e r i od f o r
a l I p a rt i es a n d t h e re a re a n um b e r of poss i b l e cou rses of a ct i on wh i ch
m a y res u l t :
( I ) tho ent i re e f fort may b e recyc l e d a l l t h e way b ac k to
a maj o r rev i s i on to the work b re a kdow n s t ruct u re , ( 2 ) sen i o r manage­
ment may d i ctate
a
no-b i d d ec i s i on for the deve l opment p rog ram or re­
q uest an exten s i on to Ph ase 1 8 , ( 3 ) outs i de j ob s h op onq i nee r i nq s u p ­
port mily l1n so l i c i h1d , � n d { � ) poss i b l y tho compn n y m i q h t p roceed on
94
a managemen t r i s k b a s i s ( s p e n d i ng com p a n y mon ey w i thout a de f i n i t i ve
con t ract ) .
Ove r v i ew
The tas k p l a n , e s t i mates , PERT netwo r ks , s c h ed u l es , a n d tech n i ca l
a p p roach a re comp l eted .
The p r i c i ng d e p a rtment h a s i n co rporated es t i ­
mates f rom ma n u factu r i ng , too l i ng , l og i st i cs , etc . , a n d comp i l ed a
tota l company cost e s t i ma te .
The va r i ous othe r ope rat i ng dep a rtmen ts
h ave p re p a red t h e i r respect i ve p l an s .
Cont racts now p re p a re s a
l ette r of t ra nsm i tta l a n d t h e e n t i re p a c kage i s s e n t to t h e cus tomer .
Man agement may w i s h to u t i I i ze t h e t i me f rom s u bm i s s i on to not i ce of
awa rd to reex am i ne i ts pos i t i on w i th respect to the compet i t i on o r
va r i ou s c u s tome r agenc i es .
M a n y t i me s t h e p e rsonne l w ho h a ve con­
t r i b uted to the P h a se 1 8 and p roposa l e f f o rt w i I I b e rea ss i g n e d .
In
f act, one of t h e maj o r benef i ts of t h e De f i n i t i on P h a s e i s t h a t t h e
cont ractors w i l l be f u n de d d u r i ng Phase I C t o keep the p rog ram team
tog e t h er .
T h e P roject Def i n i t i on Ph a s e as A p p l i e s o n T i tan I I I a n d Lance
The p reced i ng sect i on s of t h i s c h a p t e r h a ve exam i ne d t h e De f i n i ­
t i on Ph ase a n d i ts re l at i on s h i p to a s i ng l e cont racto r ' s s y s tem o f
e ng i nee r i ng acco u n ta b i l i ty .
The n um b e r o f l a rg e p rog rams t h a t h ave
b een s u b j ected to th i s d i sc i p l i ne h ave been ext reme l y l i m i te d d ue to
the i n f a n cy of t h i s new con ce p t .
The f o l l ow i ng two c a s e h i s to r i es ,
h oweve r , a re i n t r i g u i ng beca u s e they p re s e n t the th oug h t f u l m a n ag e r
an o p p o rt u n i ty to a s k some penetrat i ng q ue s t i on s .
95
T i ta n
I l l
- The T i tan
I l l
i s a " q u i c k - re a c t i on veh i c l e f o r
.
.
I
m i I i ta ry s p ace m 1 s s 1 on s . "
I t h a s b e e n note d o n p a g e 6
Ma rt i n t h e p r i me co nt racto r .
t h a t T i ta n
I l l
a s u cces s f u l
i s a n A i r F orce p rog ram w i t h
It
w a s u s e d a s a n examp l e a p p e a r i n g to h ave h a d
P roj ect De f i n i t i on P h a s e .
l a s t e d a ye a r - tw i ce a s
Howe ve r ,
the P h a s e
18
l on g a s s p ec i f i ed by DOD D i rect i ve
3200 . 9 :
" Eve r y t h i ng [ p l a n s a n d
r e p o rts o f s up p o rt i n g c us tome r
i n Ch a p te r V ] o n T i ta n
agenc i es a s desc r i bed
yet b e e n s ubm i tte d , y e t DOD
to p u rs ue a P h a s e
a p p rox i mate l y
1 8 p rog ram .
f o u r mon t h s ;
I I I
h a d not
i ss ue d a deve l o p m e n t d i rect i ve
Th i s w a s e x p ected to
l as t
h ow e ve r , DOD d i d not r e l e a s e
f u n d s f o r t h ree m o n t h s a n d cont ractors h a d t o p roceed on
E i g h t mon t h s a f te r t h e d i rect i ve
i s s u e d , a d e ta i l ed P S PP [ P ro p os e d S y s tem P rog ram P l a n ]
w a s s ub m i tted to DDR & E [ D i recto r , Deve l opment Re s e a rch a n d
E ng i nee r i ng ] f o r a p p rova l to p roceed to t h e deve l opment
m a n ageme nt r i s k money .
was
p rog ram . "
"At th i s p o i n t , DOD
i n i t i ated stu d i e s
not p a rt i c i p a te , w h i ch
f o u r month s .
Phase
i n w h i c h t h e S PO d i d
l e ng t h e n e d t h e p rog ram a n a d d i t i on a l
I t w a s a p p rox i mate l y o n e yea r f rom t h e o r i g i na l
1 8 d i rect i ve d a te b e f o re DOD g ra n te d a ut ho r i ty f o r
f u rt h e r d e ve l op me n t .
re l e a s e w h i ch
E v e n a t th i s po i n t ,
i t w a s a co n d i t i on e d
i n e f f e ct req u i re d a f u l l y negot i ated cont ra ct
s i n ce DOD w a s a ttem p t i ng to e l i m i na te t h e p ract i ce of w r i t i n g
CPFF
l et te r cont racts .
F rom t h i s po i nt o f t i me of
by DOD , t h e re w a s a n a d d i t i on a l
a ut h o r i za t i on
l ap se o f a b o u t t h ree a n d o n e ­
h a l f mon t h s to f u l l y negot i ate t h e con t r a c t a n d get t h e f u n d s
re l ea sed .
I n a d d i t i on , t h e n e g ot i a t i on
t y p e co nt ract
The author ' s
t h i s T i ta n
I I I
i ns te a d o f t h e
i nitia l
e f f o rt a
commen t
i s t h at
Lt . Co l .
E.
Dot y , T i ta n
Fe b r u a ry
1 9 6 3 , p . 50 .
I I I
96
�n
a CPF F
i s a m i s n ome r to ca l I
A fte r a t
l ea s t
1 96 4 , p . 27 .
S PO ,
i n P rog ram De f i n i t i o n P h a s e
Re po rt o f a Comm a n d W i de Con f o re nce , No .
Base ,
it
' P roj ect De f i n i t i on P h a s e . '
I M i s s i l e s a n d Roc kets , M a r c h 9 ,
2
re s u l ted
i nte n d e d CP I F t y p e ! "
SCI:. S - 36 A n d rews A i r Force
one ye a r ' s e f fort i t seems reason a b l e to ass ume that eng i nee r i ng was
we i I i nto deve l opment eng i nee r i ng e f fort - Phase I e f f o rt as de f i ned
i n th i s the s i s .
The p r i ma ry q uest i on i s , howeve r , that i f "comp l ete
def i n i t i on of a tota l m a j o r system "
con t ract negot i ate d?
'
was accomp l i s hed , why was a CPFF
I t a l so seems u n u sua l that t he S PO , des i g nated
as the systems ma nage r , was l e ft out of the add i t i ona l s t u d i es i n i t i ated b y DOD .
Based on the p reced i ng q uotat i on s , i t i s i mposs i b l e
to make a pos i t i ve statement con cern i ng T i ta n I I I P roj ect De f i n i t i on
Phase co n d uct ; howeve r, the mere fa ct that Co l . B l ey n a i l e r a n d Lt .
Co l . Doty h ave exp re ssed thoug hts somewhat at va r i a n ce s hou l d a l e rt
the ma n a g e r to f u rt h e r an a l y s i s .
La nce - Lance i s a h i gh l y mob i l e gene ra l p u rpose m i ss i l e w i t h a
range of th ree to th i rty m i l es a n d adapta b l e to e i th e r n uc l ea r o r
con ven t i on a l wa rheads .
I t i s an A rmy p rog ram w i th L i ng -Temco- Vo ught
< LTV ) the p r i me cont racto r .
F i g u re 9 , page 98 , i s a compos i te Lance
Acq u i s i t i on F l ow Cha rt deve l oped f rom the fo l l ow i ng a n a l y s i s .
I n m i d -J u l y , 1 96 2 , a n umbe r of con t racto rs s u bm i tted p ropos a l s
for a Phase 1 8 to the A rmy .
The A rmy p roceeded to se l ect a n d award
con t racts to Ch rys l e r and LTV .
1 96 2 .
These a w a rds were made A ug ust 20 ,
I n the Aug u s t , 1 96 2 i ss ue of Ae rosp a ce Man agement , C l y de S keen ,
Execut i ve V i ce-Pres i dent of LTV comme nted on PERT /Cost req u i rements
i n the req uest for p roposa l .
n i t i s a waste of t i me a n d e f fort to req u i re a l I b i dde rs
to use a n e l aborate , soph i st i cated cost i ng tech n i q ues
req u i r i ng much documen tat i on a n d j us t i f i ca t i on a t a po i nt
i n the p rocu rement cyc l e w h e re i t i s ne i ther e f fect i ve nor
I
Re f e r to q uota t i on n um b e r one , p . 6 .
97
lAN C E ACQ U � S � l � O N FlOW CHART
AEROSPACE FIRM S SUBMIT
PROPOSALS FOR P D P
.6. M ID-JUlY,
C HR Y S L E R & LTV A W A R D ED
P D P C O NTRACTS
1962
.6. A U G U ST
20, 1962
CHRY SLER & LTV S U BM IT PDP
REPORTS & FIRM PROPOSAL FOR
THE DEVELOP M ENT PROGRAM
.6. OCTOBER
22, 1962
LTV AWAR DED DEVELOPM ENT
PROGRAM
.6. N OVEMBER
1 , 1962
6 APRIL
MAJOR RE-DESIGN ANNOU NCED
DEVELOPMENT CONTRACT
DEFINITIZED
@
79.4 M ILLION
SKEEN 'S C O M M ENTS
MAY
LB&J JU LY -AU GU ST,
26, 1963
23, 1963 .6.
1962
BRUNOW'S COMMENTS
JULY ,
FI G U R E
9
1963[£
:OJ
I t i s not the accu racy of the i n i t i a l
f u l l y mean i ng f u l .
cost p roposa l wh i c h i s the seat of the p rob l em , b u t the
ma n n e r i n wh i ch we seek to use i t . " l
I t i s d i f f i c u l t to dete rm i ne the exact t i m i ng of h i s stateme n t bef ore o r a f te r the not i f i cat i on of awa rd to LTV .
S keen ce rta i n l y
i mp l i e s that the cost s u bm i tted has someth i n g l e ss t h a n h i s comp l ete
endorsement .
Of cou rse , i t wou l d i n deed be e n l i g hten i ng to h ave some
m i s s i ng f acts s u p p l i e d , s uch a s :
the re l a t i ve me r i t of the va r i ou s
p roposa l s s u bm i tte d ; the work statement depth of deta i I ; the stateo f -the- a rt for La nce system, etc .
Ch rys l e r a n d LTV s u b m i tted th e i r re s pect i ve Phase I B f i n a l repo rts a n d deve l opme n t p rog ram p roposa l s on October 22 , 1 96 2 .
The
deve l opment co nt ract was awa rded to LTV ten days a f te r s u bm i tta l , on
Novem b e r I , 1 962 .
Th i s i s ext reme l y f ast t u r n a ro u n d t i me for Phase
I C ope ra t i on s - an i n f e re n ce m i g ht even be d rawn that the cont ractor
was s e l ected b e f o re the p ropos a l was s u bm i tted .
The awa rd was a l so
i nte rest i ng i n that i t com p l ete l y neg ated one of the p r i ma ry p u rposes of the De f i n i t i o n Phase :
"The cont ract for Phase I I [ deve l opme n t p rog ram ]
s h a l l be
executed i n de f i n i t i ve form p r i o r to i n i t i at i on of the con t ra cto r
Phase I I e f fo rt . " 2
.
1
•
.
F rom Ro l a n d W . F rambes , " PERT a n d PERT/Cost i n the RFP , " p . 4 8 .
2
P rog ram De f i n i t i on Phase , Depa rtmen t o f De fense D i rect i ve
( d ra f t ) , J u l y 8 , 1 96 3 .
99
The La nce co n t ract , howeve r , w as not de f i n i t i zed u n t i I s i x
mon ths l ate r , May 23 , 1 96 3 .
S keen was p rob a b l y not too s u r p r i sed at
t h e out come because he f u rt h e r sta ted back i n A u g u s t 1 96 2 , t h a t :
"
expe r i ence s hows u s the system p roposed b y the
w i n n i ng cont ra cto r i s I i ke l y to be cha nged s i g n i f i ca nt l y
d u r i ng the o f te n l e ngthy eva l ua t i on p e r i od a n d d u r i ng the
p rocess o f cont ract negot i at i on to i nco rporate req u i red
add i t i o n s , de l et i o ns , or cha nges . " !
The La nce p rog ram a p pea rs to be no except i on a s i t has h a d a
n um b e r o f add i t i on s , de l et i o ns , o r cha nges :
I .
Du r i n g the l a tte r pa rt o f Novembe r , 1 96 2 , the A rmy i nst i tu ted
a p rov i s i o n that the wo rk was to be perf o rmed i n Det ro i t i n stead o f Texas a s o r i g i n a l l y p l a n ned .
Est i mated i nc rease i n
the co nt ract was $ 1 I m i I I i o n , resu l t i ng f rom h i g h e r l a bor
cos ts a n d the t ra n s f e r o f some 1 50 LTV pe rsonne l f rom Da l l as
to Det ro i t .
2.
2
I n Ma rch , 1 96 3 , the A rmy req ue sted t h a t $ 5 m i I I i o n o f f i s ca l
yea r 1 964 f u n d s be rea p p rop r i ated i n to the f i s ca l yea r 1 963
p ro g ra m by the De f e nse Ap p rop r i a t i o n s S u b-Comm i ttee due to
u n a nt i c i pated ove r r u n s . 3
3.
The m i ss i l e con f i g u ra t i o n u n de rwent a ma j o r redes i g n res u i t i n g i n an a d d i t i o n of severa l
i nches to the d i amete r a n d
a bo u t 200 pou n d s i n we i gh t . 4
1
2
Loc
•
c i t. , p
•
48
•
" La n ce F u n d Cut T raced to ' Po l i t i ca l ' C h a rges , " Av i a t i o n Da i l y ,
J une 26 , 1 96 3 .
3
" Mc:C i e l l a n d Co ntemp l nt8s Li1nco l n(j u i ry , " S p r-1 ce Mn r kot i nCJ
_
I n-to I I i gcn co , Mny 1 5 , I % 3 .
4
[ La nce p ro g ress re port ] , Sp acew i re , Ap r i I 26 , 1 963 .
1 00
4.
The wage rate d i f f e rent i a l between the U n i ted Auto Wo rkers
and the Ae rospace I n d u s t ry may f o rce the c l os i ng of the
Det ro i t p l a n t . l
Adm i tted l y , t h e re a re a n y n umber of f a cts a n d c i rc ums tances t h a t
cou l d i mmed i a te l y reve rse the p reced i ng a na l ys i s .
The a uthor h a s
not i ntent i ona l J y m i s rep resented o r om i tted the ava i f a b l e p u b I i c i n format i o n .
I t i s f a r too ea r l y i n the p ro g ram l i f e cyc l e to ma ke a
pos i t i ve statement conce rn i n g the tota l Lance postu re .
I n fact ,
Cha r l e s L . B r u now , Lane p roject ma nage r , h a s rece nt l y expoun ded on
LTV ' s ma nageme nt a p p roa ch :
"[the deve l opme nt p ro g ram co nt ract res u l t i n g f rom Pha s e 1 8]
t i ed i ncent i ve featu res not o n l y to the p rogram cost , b u t a l so
to the p rog ram schedu l e , a n d to the major performa nce p a ra ­
mete rs w h i c h w i I I i ns u re meet i n g t h e m i I i ta ry c h a racte r i st i c s
of accu racy , re i i a b i I i ty , a n d u n i t cost . " 2
Some of the obv i ou s q uest i o ns that m i ght be a s ked a re :
How
ma ny eng i neer i n g rees t i mates we re made betwee n A u g u s t , 1 962 a n d Ma y ,
1 963?
How d i d the p roposa l s u b m i tted Oc tober 22 , 1 96 2 , comp a re w i th
the co n t ract de f i n i t i zed Ma y 2 3 ,
1 963?
How ma ny PERT/Cost ha rdwa re
a n d s o f twa re e n d i tems a re there i n the wo rk b rea kdown structu re?
Were eng i nee r i ng hou r est i mates f i rm for the ent i re deve l opment p rog ram a nd , i f s o , we re they based i n a l I cases on tech n i ca l J y de f i n i t i ve statements o f i nte nt?
The po i nt i n b r i ng i ng i n these two cases i s t h ree fo l d :
( J ) to
'
" LTV Th reatens to C l ose La nce P l a nt , " Space Rus i nnss Oa i l y ,
Se ptembe r 30 , 1 96 3 .
2
" La nce A p p roach Desc r i bed by B ru now i n AMA S p eec h , " LTV News ,
J u l y 5 , 1 96 3 .
101
1.
s h ow t h a t a c u rsory re a d i nq o f va r i ous a rt i c l es may i mp l y ' su cces s f u l '
w h e reas th i s may or may not be the case ; ( 2 ) beca use L a n ce and T i tan
I I I h ave been s u b jected to a P h a se I B does not necessa r i l y mea n th at
the s ame re su l ts m i g h t not h a ve been obta i ned f aste r and at l e ss
ex pense w i thout the Ph ase ; a n d ( 3 ) t h a t p i e c i ng togeth e r ava i f ab l e
i n f ormat i o n may l ea d to quest i o n s that m i gh t not oth e rw i se be a s ked .
The seventh a n d f i na l c h a p ter w i I I p resent the h i g h l i g hts of
th i s t hes i s i n s umma ry form i n a n attempt to estab l i s h the va l i d i ty
of the a uth or ' s hy pothes i s .
I n a d d i t i on , those a reas whe re k n ow l edge
i s e i th e r l a c k i ng or obso l ete w i I I be exam i n ed .
1 02
CHAPTER V I I
SUMMARY
The p roj ect Def i n i t i o n Phase ( PDP ) was i n i t i a ted by the De p a rt­
me n t of De fense to p rov i de a more comp reh e n s i ve bas i s for p l a n n i ng
a n d con t ro l l i ng l a rge deve l op ment p rog rams .
The r i s i n g deve l opmen t
costs re s u l t i n g f rom Cost-P l u s - F i xe d-Fee con t racts gave i mpetus to
th i s dev i ce fo r e n a b l i n g deve l op ment co ntracts to be cove red by more
def i n i t i ve Co st-P l us- I ncent i ve- Fee o r F i xed-Pr i ce Co nt ract s .
F u rthermo re , greate r p rog ram de f i n i t i on i s req u i re d to p revent
cost ove r ru n s , schedu l e s l i p p ages a n d to reduce the n um b e r of cost l y
des i g n a n d scope c h a n ges .
By more comp l e te p rogram def i n i t i on the
cont ractor i s a b l e to estab l i s h mo re rea l i st i c cost est i mates and
s c h e d u l es .
The fo l l ow i ng i tems a re a n examp l e of the def i n i t i on the
P roj ect De f i n i t i o n Phase p rov i des :
(I)
A l i st of end i tems re qu i re d f o r operat i on
a n d ma i ntenance
of the sy stem .
(2)
Per f o rma nce s pec i f i cat i on s for each of the e n d i tems .
(3)
A Wo rk Brea kdow n S t ructure for the Deve l opment P rog ram .
(4)
A PERT Cost Network P l an for the Deve l o pme n t P rogram s h ow i ng
i nte rf ace events w i th othe r p a rt i c i p ants .
(5)
A ma i ntena nce p l a n for the s ys tem .
1 03
I,
(6)
Deta i l e d cost est i mates for Phase I I for eve ry i tem on the
Wo rk B rea kdow n S t ruct u re d e r i ved f rom the PERT Cost Sy stem .
(7)
A m i l estone schedu l e for Phase I I wh i c h i s cons i ste n t w i th
the PERT Cost Network .
(8)
Re i i a b i l i ty and ma i nt a i nab i l i ty spec i f i cat i on s w i th a p ro­
posed te st p l an to demonstrate comp l i a nce w i t h s ame f o r the
system and maj o r s u b systems .
(9)
S ystem a l te rnat i ves w i th the re su l t ant t i me-cos t - p e rforma n ce
t rade-o f f dec i s i o ns .
( 10)
New des i gn a n d tech no l ogy req u i reme nts a l on g w i th a p roposed
test p l a n to demonst rate the i r fea s i b i l i ty .
CIJ)
Tech n i c a l p rob l ems a n d the p roposed so l u t i on s .
( 1 2)
Tec h n i c a l s pec i f i cat i ons a n d p e r f orma nce req u i rements f o r
e a r l y deve l opment i tems .
( 1 3)
Req u i reme nts and de l i ve ry s c h e d u l es for data and doc umenta­
t i on .
The a bove e n d p roducts of the PDP w i I I be used i n co nj u n ct i on w i th
a n d to deve l op a deta i l ed wor k stateme n t , i . e . , the p rog ram tas k p l a n .
The t a s k p l a n i s a comp i l at i on of the deta i l e d ta s k statements that
a re def i n ab l e i n a d v a n ce of the actua l e f fort .
I n add i t i on , the sec­
t i on s of the tas k p l a n co rrespon d d i rect l y to the work b rea kdow n st ruc­
t u re w h i ch i s the bac kbone of the PERT Cost Sy stem .
I t i s u pon th i s
i nf o rmat i on a n d format that the d i rect est i mates f o r the deve l opme n t
p rog ram a re s u b m i tted a n d actua l expe n d i t u res a re co l l e cted .
Th i s thes i s has n t tamptod to po i n t out th�t , a l thou � h the Proj ect
1 04
De f i n i t i on Phase has p roduced a ma r ked i mp rovement ove r oth e r e f forts
to d e f i ne deve l opment p rograms p r i o r to the actua l execut i on , i t does
not a n d can not p rov i d e the comp l ete d ef i n i t i o n that i s req u i red to
d i rect l y est i mate the who l e deve l opment p rogram .
Th i s nondef i n a b l e
e f fort wh i c h occ u rs ma i n l y i n Phase I I s u bs equent to i n i t i a l re l ease
o f e n g i nee r i ng d raw i ng s h a s been d e f i ned i n C h a p te r I I I .
I t i s for
t h i s ef fort that d i rect est i mat i ng i s not a p p l i c a b l e and a compa n y must
u t i l i z e h i s to r i ca l d ata to c reate the p rog ram est i mates .
I n a n e f fort to p rov i de va l i d h i stor i ca l data for est i mat i n g p u r­
poses , one compa n y h a s estab l i shed a s ta n da r i zed eng i n eer i ng ac cou nt ­
a b i l i ty s y s tem .
Th i s s ystem i nc l u des a sta n da rd i zed wo rk b reakdown
s t r u ct u re ( see A p pend i x B ) wh i c h sepa rates des i g n a n d nondes i gn eng i nee r i ng t i me b y Phase I and P h ase I I f o r t h e va r i ou s h a rdware c a tegor i es ,
i . e . , m i s s i l e , g ro u n d s u p port equ i p ment , a i rborne s u p po rt equ i pment ,
nonde l i ve ra b l e s u p port equ i pment a n d i n st rumenta t i o n .
These segrega­
t i on s a re ma ndatory to p rov i de a bas i s for the h i s tor i ca l es t i mat i ng
tech n i q u e s desc r i bed i n C h a p t e r V I .
W i th t h e P roj ect De f i n i t i on Phase , the i ncent i ve cont racts , a n d
g reate r depth o f p rog ram def i n i t i o n h a s come t h e c u s tomer req u i reme nts
f o r PERT Cost techn i ques for p rog ram man a gemen t and report i ng .
As a
resu l t o f t h i s requ i remen t , the quest i on a b l e dema n d for a common end
i tem wo r k b rea kdown s t r u ct u re for a l I f u n ct i ona l depa rtments of a
cont racto r ' s organ i z at i on a rr i ses .
Chapter I V d i scussed the d i f f i ­
c u l ty a e rospace f i rms have i n meet i ng t h i s req u i reme n t .
I n dex Co ncept i s p rop o s e d
as
a
dov l co for p ro v i d i ng
1 05
n
The Sect i o n
moa n s f o r a l I
f un ct i o n a l d e p a rtme n ts to c h a rge the i r e f fort to t h e s ame end i tem .
Howeve r , t h i s concept has i ts d i sadvantages a l on g w i th t he a p p a re n t
advantage s .
Both a re d i sc ussed i n deta i I i n a p reced i ng c h a p te r .
T h e rema i nd e r o f t h e body o f t h e t h e s i s , i . e . , C h a pte rs V a n d V I ,
p rov i de d a deta i l ed desc r i pt i on o f t h e P roj ect De f i n i t i on Phase act i v i t i es , a l on g w i t h two actua l ap p l i ca t i on s f o r t h e benef i t of the read e r .
On t h e s u b j ect of the gene ra l a p p l i c ab i l i ty a n d usef u l n e s s of the
P roject Def i n i t i on Phase , t h e autho r ' s pos i t i on can best b e p re sented
b y the fo l l ow i ng comments a n d q uotat i on s wh i ch i n d i cate that h i s
b e l i e f s a re not u n i q ue .
T h e re i s d e f i n i te l y a p rob l em .
I n o rd e r to e f f e ct i ve l y p l an ,
est i mate , a n d m a na ge a g i ve n p rog ram t h e cont racto r needs a bette r
" p i ct u re " of w h a t the p rog ram e nta i I s i n a d va n ce of t h e actua I e f f ort .
T h i s so l ut i on to t h i s i n d u s t r i a l s h o rtcom i n g i s d i f f i cu l t d ue to t h e
n a t u re o f t h e i n d u s t ry :
" A s t h e Nat i on a l I n d u st r i a l Con f e rence Boa rd h a s po i nted out ,
resea rc h a n d deve l opment i s ve ry d i f fe re n t f rom p roduct i on a n d
oth e r rou t i n e operat i on s . T h e p rod uct of R&D act i v i ty i s not
known w i th any rea sonab l e deg ree of ce rta i nty i n advance . A l l
th a t can be ava i l ab l e , i n e f f ect , a re j u d gements reg a r d i ng t h e
p robab i l i t i es of v a r i ou s o utcome s .
I n th i s res pect , R & D s h a re s
ce rta i n featu res w i th l otte r i es , gamb l i n g a n d i ns u ra n ce . " '
T h i s i s by no means t h e on l y p rob l em w h i ch t h e PDP attempts to
rect i f y :
"\tJe [ th e c u stome r] d o n ot h a ve near I y enou g h u n d e rs t an d i ng
a s yet o f hovJ to k now w h e th e r we a re gett i ng a good p ro d u ct
for o u r mo ney , whethe r resea rc h a n d deve l opment work i s
b e i ng competen t l y managed , o r how to s e l ect t h e mo re competent
I R i c h n rd Rutte r , "Re s e a rc h Costs to he Rev i ewed , " New Yor k T i me s ,
Sept . 24 , 1 96 3 , p . 7 .
1 06
as betwee n resea rch . a n d deve l opment esta b l i s hments . "
1
" T h e re a re cont racts a n d the n there a re con t racts . . . some
a re l oose l y w r i tte n , some a re the resu l t of p rotra cted a n d
ha rd-d r i v i n g negot i a t i ons , a n d i n some t h e gover nment may
not k now exact l y what i t w a n ts . S i nce cont ractors w i I I be
eva l u a ted for what they d i d aga i n st what the con t ract says
they wou l d do, they w i I I be fo rced to pay mo re attent i o n to
the negot i a t i o n deta i I s , and the s u bsta n t i ve content of the
wo r k stateme n t . " 2
The magn i tude o f th ese p rob l ems ma ke a s i n g l e comp l ete so l u t i o n
ext reme l y d i f f i c u l t a n d i mp roba b l e .
I t i s f o r th i s reason that a
p a rt i a l so l ut i on i s better t h a n no so l u t i o n at a l I .
The a u thor a n d
others ma i n ta i n t h a t t h e Project De f i n i t i on Phase i s j u st that , a
pa rt i a l so l ut i on :
"Now the re i s a u n i q u e fea t u re a bout the p rogram d e f i n i t i o n
a p p roach w h i ch i s : rather t h a n bas i ng ou r i mage , o u r concept ,
of a system u pon sepa rate , u n i l ate ra l i np u ts f rom the va r i o u s
cont racto rs who m a y at some f u tu re t i me be i n vo l ved i n t h e
p rog ram w e p rov i de i n stead a pe r i od du r i ng wh i c h these co n­
t ractors a re actu a l l y f u nded to wo r k w i th the i r as soc i ate con ­
t ra cto rs i n dev i s i ng a mut u a l u n de r stand i n g of what the p rog ram
i s to be . " 3
I be I i eve one of the p r i n c i pa I benef i t s that we get out
"
of th i s p h ase , i s t h at the pe r i od d u r i n g wh i c h the p rogram
def i n i t i on ta kes p l ace p rov i des a so rt of tr i a l ma r r i a ge be­
tween the m i I i ta ry depa rtme nt and the con t racto rs . " 4
1
Bu reau of the Budget , Re po rt to the P res i dent on Gove rnment Co n­
t ract i n g for Resea rch a n d Deve l opme nt , Ap r i I 30 , 1 96 2 , U . S . Go ve rnment
P r i n t i n g O f f i ce , Doc ument No . 94 , 87th Cong ress , 2nd Sess i o n , p . 35 .
2
" P rom i s e , P rob l ems Seen i n Rat i ng P l a n , " Av i at i on Wee k , Se pt . 1 6 ,
1 96 3 1 p . 1 5 .
3
Ro b e rt S . Tuch e r , Asst . D i rector [ E n g i neer i ng Mana gement - De fense
R&E] i n Prog ram De f i n i t i o n Ph as e - Re port of a Comma n d W i d e Co n f e ren ce ,
No . SCCS - 36 , And rews A i r Fo rce Ba se , Feb ru a ry , 1 9 63 , p . 1 0 .
4
�. p . 1 2 .
1 07
" I ' m s u re you a l I rea l i ze that the w a y the cont ra cto r cond ucts
h i mse l f d u r i n g the p rP-co n t ract stage of the game , the att i tu des
he ev i dences , the respon s i ve n e s s that h e i n d i cate s , the g reat
p l a n s for tho p roject that he h a s , etc . , a re q u i te d i f fe rent
t h a n they l ook a f te r he gets t h e con t ract . A f te r he gets a job ,
you f i n d t h a t some of the good peop l e he was p l a n n i n g to p ut on
the job h a ve d i sappeared i nto oth e r p roj ects , the co st of the
work esca l ates a n d h i s respon s i venes s to d i rect i o n f rom the
Gove rnment c h a n ge s ma r ked l y . " !
"On the s u r f a ce , the ' method ' G rown exposes soun d s good , we i I
tho u g h t out , a n d i f i t were p resented a s a co l l e ge debate , i t
v1ou l d p roba b l y b r i ng home a t rop hy . Gut , th i s i s not a co l l ege
debate . And de s p i te the ' method ' the re a re s t i I I cost ove r­
run s , b ro ken sched u l e s , a n d p rog rams t h a t get i nto ser i ou s
tec h n i c a l d i f f i c u l ty on l y to w i nd u p o n the p i l e o f d i s c a r d s . " 2
Resea rch and deve l opment i s a fert i l e f i e l d f o r more soph i st i cated
manageme nt con t ro l tec h n i ques ; i ndeed , i n the a rea of eng i nee r i ng
acco u n t a b i l i ty the s u r f ace h a s b a re l y been tou ched .
The dete rm i n at i on
of ma n h ou r p roduct i v i ty on a deta i l ed l e ve l , f o r i ns tan ce , wou l d be a
n at u ra l outg rowth res u l t i n g f rom mo re deta i l ed def i n i t i o n .
I n ad d i t i on ,
many of the tech n i q u e s and p h i l osop hy u s e d by the i n d u s t ry tod ay have
been ad apte d f rom a i rc ra f t h i sto ry a n d a re on l y remote l y a p p l i ca b l e
to m i s s i l e s ys tem e f fort .
There i s a major req u i reme nt for a n i n d u s t ry-
w i de a n a l y s i s o f e n g i neer i n g accountab i l i ty ; i f th i s thes i s does nothi ng more t h a n deve l o p a n awa renes s on the p a rt of man ageme n t , the
a uthors ' p u rpose h a s been j u s t l y s e rved .
' Ro bert S . Tuch e r , A s s t . D i rector [ E n g i nee r i ng Mana geme nt - De fense
R&E] i n Prog ram De f i n i t i on Ph ase - Report of a Comma n d W i de Con f e ren ce ,
No . SCCS : 36 , A n d rews A i r Force Base , Feb r u a ry , 1 9 6 3 , p . 1 4 .
2 J o h n P . Kus ne r i c k , "The U l t i mate Te st-Prog ram De f i n i t i on , " AP-ro­
s p ace Manaq eme n t , J u l y 1 9 63 , p . 1 6 .
1 08
APPEND I X A
PAGE
SOURCE
1 10
PERT/COST SYSTEMS DES I GN , DOD/NASA
G u i de , J u ne , 1 9 62
I l l
S p r i nt Weapon Sy stem [Proposed ] ,
Decemb e r , 1 9 62
1 12
Sat u r n S- I C , Boe i n g A i rc ra f t , Seatt l e
[ no date]
1 13
Man ned O r b i t a l Laboratory , Decembe r ,
1 96 3 . [Sy stem ope rat i n g w i th i n company]
1 14
Prog ram 369 , Ae ros pace Corporat i on ,
Los Ange l e s [ no date]
1 09
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APPEND I X B
( Ma t r i x Numbers 4 . 0 ,
7.0,
8.0,
9.0,
12.0,
13.0,
and
1 4.0
h ave been de l eted a s they a re o f m i no r i mpo rta nce to the
ana l ys i s .
cab l e i s
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i de nt i ca l
to 3 . 0 .
7.0,
8.0,
when a p p l i ­
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req u i reme nts and
1 2 . 0 and
14.0
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i s a sepa rate cont ract . )
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PROGRAM
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REQUIREMENTS
PROGRAM "A"-INCLUDES THE DIRECT lABOR. MATfRIAI. AND RElATED
COSTS fOR All Ef FORTS WHtTHER PERfORMED WITHIN lltE MSSD ORGAHI·
ZAnOH OR SUB-CONTRACTED TO AlfOtHER DIVISION OR CCMPAlfY.
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WILL HAV£
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..
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NOTES:
1 .'' D£NOTES AN APPLICATION OF SHOP ORO£R (S. O.l NUMBERS
; WHEN PROGRAM IS DEFINED T O . LEVEL AS SHOWM
. 2A JNCt.UDES THAT SEPARABLE EFFORT ASSOCIAT ED
WlTH' TASKS OF IMPL EMENT ING. SUCH PROGRAMS
AS P£RT, VALUE ENGINEERING, RELIABILITY, MAIN·
. TAJNABILJTY, CONfiGUQAnON MANAGEMENT, flC.
1 17
B I B L I OGRAPHY
"A i r Force M a n u a l to B r i ng T i ghter System Ma nagement . "
a n d Roc kets , March 9 , 1 964 , p . 1 5 .
M i ss i l es
Ame r i can M a n ageme nt Assoc i a t i on . T h e Management of S c i e nt i f i c M a n ­
powe r . New Yo r k : Re sea rch a n d Deve l opment D i v i s i on , 1 95 8 .
A r k i n , S h e p a rd M . E s t i mat i ng a n d Co n t ro l I i n g E n g i n ee r i ng Costs .
Boston :
I nd u s t r i a l Ed ucat i on I nst i t ute , No . PEN- 1 4 , J a n u a r� 1 962 .
A rmed Serv i ces Procu reme nt Reg u l at i o n C ASPR ) , A u g u s t 1 5 , 1 96 3 , Re v . 2 .
Ba rnes , Lou i s B . Orga n i zat i on a l Systems a n d E n g i nee r i ng Grou ps .
Boston : Gradu ate Schoo l o f Bus i ness Adm i n i strat i on , D i v i s i on of
Resea rch , Ha rva rd Un i ve rs i ty , 1 960 .
Be l f e r , W i I I i am . " I MPACT i s Boo n to Compute r Users . "
Rockets , J a n u a ry 1 4 , 1 96 3 , p . 24 .
B row n , H a ro l d . [Defens e p rocu reme nt ] .
t i on , J u ne 1 2 , 1 962 , p . I
M i ss i l es and
E l ect ron i c I n d u s t r i es Assoc i a­
•
B row n , H a ro l d . [ Copy of s peech ] . The M i I i t a ry Ope rat i on s S ubcomm i ttee ,
Comm i ttee on Gove rnme nt O p e rat i on s , Ho use of Rep resentat i ves ,
J u I y 2 3 , 1 9 62 .
Con t ractor Cost S t u d y - Prog ram P l a n n i ng Re port .
Comma n d , Octob e r , 1 96 1 .
" Defense B r i e f s . "
A i r Force Systems
fJf i s s i l es a n d Roc kets , J u l y , 1 963 , p . 5 .
PERT Co st Systems Des i g n . O f f i ces o f the Sec retary of De fense a n d
Nat i on a l Ae ron a u t i c s a n d Sp ace Adm i n i st rat i on . Wa s h i ngton :
U n i ted States Gove rnme n t Pr i n t i n g O f f i ce , J u no 1 9 62 .
' DOD P l a n s C h a n ges i n Systems Acqu i s i t i on .
Est i mat i n g System S u rvey .
[N . p . ; n . d . ]
[ U n p u b l i s hcd compa n y report ] , SeptembeG 1 962 .
F rambes , Ro l a n d W . "PERT a n d PERT-Cost i n the RFP . "
Ma nagement , Augu st , 1 962 , p . 4 5 .
Ae rosp a ce
Geddess , Ph i I i p . "Prob l ems a n d Prog ress - A M i I i ta ry V i ew . "
� pace Man agement , J u l y , 1 96 3 , p . 40 .
131
Ae ro­
Godow n , R i ch a rd D . " New DOD D i rect i ve on Cont racto r Pe r f o rma n ce s
l u a t i on . " E l e ct ron i c I nd u st r i e s A s s oc i a t i o n , A u g u s t 1 2 , 1 96 3 ,
p. I
•
H i tc h , Ch a r l e s J . a n d Ro l a n d N . Me Ke a n . The E co nom i c s o f De f e n se i n
t h e N u c l e a r Aqe . Camb r i d ge : Ha rva rd Un i ve r s i ty Pre s s , 1 9 60 .
Kee l i n g , Gera I d F .
" A i r Fo rce a n d I n d u s t ry . "
Decemb e r , 1 96 3 , p . 297 ,
O r d n a n ce , Novem b e r -
Ku s h ne r i c k , J oh n P . " The U l t i mate Te st-P rog ram De f i n i t i on . "
M a naqeme n t , J u l y , 1 96 3 , p . 1 2 .
L a l t a l a , E ve ret t . E nq i n e e r i ng a n d O r g a n i z at i o n .
R i c h a rd D . I rw i n , I n c . , 1 9 59 .
Homewood ,
" LANCE A p p roa ch De sc r i bed b y l3 r u now i n AMA S p eech . "
Ae ros p a ce
I I l l no l s :
LTV News , J u l y 5 ,
1 963 ,
" LANCE F u n d Cut Traced to ' Po l i t i ca l ' C h a r ge s . "
J u ne 26 , 1 963 .
Ap r i I 26 ,
[ L a n ce p rog re s s re p o rt ] .
A v i at i on Da i l y ,
1 96 3 .
L i nd , G . G.
" I n t e r p reta t i o n o f PDP ( F rom t h e Con t ra cto r ' s V i ew ) . "
[U n p u b l i s h e d rep o rt ] . J a n u a ry 2 0 , 1 964 .
L i v i ng ston , J . S te r l i n g .
"PERT i s Resea rch M a na g eme n t . "
rch , J u ne , 1 96 3 , p . 22 .
I n dust r i a l
----
L i v i n g s to n , Robe rt T . T h e E n g i ne e r i n g o f O rga n i z at i on a n d M a n a g ement .
New York : �k G raw-H i I I Boo k Comp a n y , I n c . , 1 9 49 .
" LTV Th re a te n s to C l os e LANCE P ! a nt . 11
30 p
S p ace B u s i n e s s D a i ! y , S e p tember
1 963 .
Mac New . Tom .
" I n cent i ve �,1 1 l e sto nes i n T i t a n I l l . "
�'!.!.· Novemb e r , I 96 3 , p . I 0 .
Matthew s , R i c h a rd .
" Ho1-1 to I mp l ement PERT Cos t s . "
me nt , Octobe r , 1 963 , p . 1 8 .
"Me C l e f l a n Contemp l a tes LANCE I n q u i ry . "
M a y 1 3 , 1 96 3 .
A e ros p a ce l\1 a n age­
Ae ro s p ace M a n a g e­
S p ace Ma r ke t i ng I n te l l i ge n ce ,
M e Hugh , Aust i n J r .
''How to W r i t e Bette r P ro p os a l s w i th PERT . "
s p ace M a n ageme n t , J a n u a ry , 1 9 6 3 , p . 4 9 .
McKee , J o h n C . Tho O u o n t i t y - Cos t Lc<1 r n i n q C u rves .
com p a n y ro port l. J u I y , I 962 ,
1 32
Ae ro
[U n p u b l i s h e d
"McM i l l a n Backs ' P roj ect De f i n i t i on ' i n Weapon P l a n n i n g . "
De s i g n , Novembe r , 1 96 3 , p . 1 8 .
A d v a n ced
McM i l l a n C i tes R&D Sav i n g s , P i t f a l l s of ' D i f i n i t i on Phase ' . "
Sp ace Da i l y , Novembe r 1 8 , 1 96 3 , p . 38 .
M i ss i l e /
McName ra , Rob e rt S . [De f ense p rocu reme nt sp eech ] . Depa rtme n t of
De f e n se News Re l ease , No . 5 4 8-63 . O f f i ce of Pu b l i c A f f a i r s ,
Wash i ngton : U n i ted St ates Gove rnment Pr i n t i ng O f f i ce , A p r i I 20 ,
1 96 3 .
McName ra , Robert S . "Project De f i n i t i on Phase . "
D i rect i ve , No . 3200 . 9 , Fe b ru a ry 26 , 1 964 .
McName ra , Robe rt S .
Memorandum for the Pres i de n t .
M i kese l l , Bruce . "Unce rta i n t i e s of PERT . "
J an u a ry , 1 96 3 , p . 20 .
Dep a rtme nt o f De fense
J u l y 5 , 1 962 .
A rmed Fo rces Man agement ,
"M i s s i l e B Prog ram Enters F i n a l Def i n i t i ve Phase . " A rmy Res e a rch a n d
Deve l o pment News Maga z i ne , Septembe r , 1 96 2 , p . 4 .
Mo rr i s , Thomas D . G u i de to the Eva l u at i on o f Major Deve l opment
Cont racts . Of f i ce of the S e c reta ry of De fense . Wash i n gton :
U n i ted States Gove rnment P r i nt i n g O f f i ce , J u l y 26 , 1 96 3 .
Morr i s , W i l l i am T . En g i ne e r i n g Economy .
R i c h a r d D . I rw i n , I nc . , 1 960 .
Homewood , I I I i no i s :
"M/S I nd u s t ry - Gove rnment P res pect i ves S h i f t i n g . "
December 2 , 1 963 , p . 1 1 4 .
M i s s i l e/S pace Da i l y ,
Pa i ge , H i I l i a rd W . "How PERT-Cost He l p s the Gene ra l Manaqe r . "
Bus i ness Rev i ew , J u I y , 1 96 3 , p . 87 .
Harvard
Paskman , M a rt i n a n d J . Ste r l i n g L i vengsto n . " I s PERT What Man agemen t
Needs ? " Ae ros p ace Man agement , Octobe r , 1 9 6 2 , p . 5 2 .
PERT Sem i n a r .
Camb r i dge :
Man agement Systems Corporat i on , 1 962 .
Phoen i x , Wa l te r . " R&D Man agement Dy nam i c s . "
Feb r u a ry , 1 96 3 , p . 2 1 .
"Prom i se , P rob l ems Seen i n Rat i n g P l a n . "
1 96 3 , p . 1 5 .
"Program De f i n i t i o n . "
L_
___ __
-- · ---�------
..
Aerospace Man agement ,
Av i at i on Wee k , September 1 6 ,
Av i a t i on Wee k , Novembe r 1 8 , 1 9 6 3 , p . 1 06 .
----- ------��-- -� --- · --- -
1 33
- - - · ------ �- - -- - ·--·-- ------- --- ·
· -�
- -
__
!
Prog ram De f i n i t i on Phase . De p a rtment o f De fense D i re ct i ve , [Dra f t] .
Wa s h i ngton : Un i ted S tate s Gove rnment Pr i nt i ng O f f i ce , J u l y 8 ,
1 9 63 .
P rog ram De f i n i t i on Phase - Re port o f a Comman d W i de Con f e rence . No .
SCCS-36 . Headq ua rte rs , A i r Fo rce S y stems Comma n d . Was h i ngto n :
A n d rews A i r Force Bas e , Fob ru a ry , 1 96 3 .
" R i c kove r S a y s De fense Buy i ng Ch anges Needed . "
Decem ber 3 1 , 1 96 3 , p . 1 6 .
M i s s i l e/ S p ace Da i l y ,
Rutte r , R i ch a rd . " Researc h Costs -to be Rev i ewed . 11
September 24 , 1 96 3 , p . 7 .
New York T i me s ,
" Summa ry o f Con t ractor Pe r fo rmance Eva l uat i on a n d P rog ram De f i n i t i on . "
[Un p ub l i s hed report ] . Octobe r , 1 96 3 .
A Summa ry o f Le ssons Learned f rom A i r Force Man agement S urveys .
A FSCP 3 7 5 -2 . U n i ted S t a tes A i r Force ; A i r Force S y stems Comman d .
W a s h i ngto n : A n d rews A i r Fo rce Base , J un e I , 1 96 3 .
S umma ry Report o f S u rvey on Att i t u de s o f S c i en t i s t s a n d E n g i nee r s i n
Gove rnment a n d I n d u st ry . Comm i ttee o n E n g i nee rs a n d S c i e n t i sts
f o r Federa l Gove rnme n t P rog rams . U n i ted S tates P r i nt i n g O f f i ce ,
1 95 7 .
S y stems Ma n ag ement Conce p t s a n d Te rm i no l ogy .
ment Reg i on , A i r Force S ys tem s Comman d .
Stat i on , A p r i I
I , 1 96 3 .
Weste rn Cont ract M a nage­
�� i ra Lorna A i r Force
" T i t a n I I I : A Ne�v a n d E n I i ghtened Manageme n t Concep t . "
J an u a ry , 1 9 63 , p . 1 6 .
S p a ce Age Ne�>J S ,
" T i t a n I I I M an agemen t a n d Tech no l ogy to b e Mode l f o r F u t u re S y stem s . "
News F rom A e rosp ace Coore ra t i on , J an u a ry 1 8 , 1 963 , p . I .
Tra i no r , J ames . " P roject De f i n i t i on Tech n i que to b e A pp l i ed to Many
Mo re P rogram s . '' �� i s s i l es and Rockets , Ma rch 9 , 1 96 4 , p. 1 4 .
T rotte r , V . H . Eng i nee r i ng A ccou nt i ng S y s tem P resenta t i on Ch a rt s .
Doug l as A i r c ra f t Comp a n y , 1 96 1 .
1 34