Dynamics of Naval Ship Design: A Systems Approach

In today's cost-constrained environment, acquisition reform is a critical component in the design, production and support of modern warships. This reform includes policies that require system acquisition programs to pursue commercial management and systems engineering practices. The application of Integrated Product and Process Development (IPPD), concurrent engineering, open systems architecture, Total Quality Management (TQM) and Integrated Design Environments (IDE) have produced noteworthy commercial successes. Many defense acquisition programs have followed suite, implementing similar process improvements. However, as many commercial industries are finding, there are limits to the success of these improvements. For example, TQM improvements are frequently not repeatable in other organizations, or even within the same organization. These failures are partly due to a lack of understanding of the dynamic impacts of process improvements within an organization, and the lack of strategic metrics and structures to monitor and optimize the improvement process. To effectively implement improvements, it is necessary to pursue a methodical, focused improvement plan. Using the methods of System Dynamics, this paper examines the mechanisms which have lead to program instabilities in cost, schedule, and effectiveness. The 1990 Naval Sea Systems Command (NAVSEA) Ship Design, Acquisition and Construction (DAC) Study analyzed process specific issues, and developed metrics for optimizing ship performance, cutting acquisition cost, and reducing design cycle time. The results of this study, and additional data collected from past and current ship acquisition programs are used to model the ship design and production process with the goal of "gaming" process improvements relative to performance metrics. Specific mechanisms studied include: • external influences such as increased technological complexity and budgetary pressures; • internal process delays such as information flow delays and approval delays; and • feedback processes such as design iteration, error propagation and design change. Modeling of these mechanisms provides a means to study past programs, and assess the potential savings that can be generated with the introduction of process improvements. As a case study, the paper examines the structures and resultant trends that impacted the design and acquisition of DDG 51. General process structures are studied including design interactions, schedule, resources, and allocation. Specific dynamic relationships between cost thresholds, design effort and schedule are studied to show the ability of modeling to capture dynamic trends and predict results. Finally, a "what-if?" scenario that looks at the application of IPPD is examined. The scenario demonstrates the potential for process optimization, and identifies critical variables and areas of risk.