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. Using the methods of System Dynamics, this paper examines the mechanisms which have lead to program instabilities in cost, schedule, and effectiveness. 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.