Implementing Set Based Design into Department of Defense acquisition

Abstract

This report provides guidance to implement the Set Based Design (SBD) methodology into the Department of Defense (DOD) acquisition framework. Deferring requirements and design decisions is the essence of SBD, which in turn defers cost commitments, allowing more flexibility to management than traditional design methodologies. This reduces the risk for cost and schedule overruns, both of which are perennial challenges for the DOD. This report identifies the original SBD principles and characteristics based on Toyota Motor Corporation's Set Based Concurrent Engineering Model. Additionally, the team reviewed DOD case studies that implemented SBD. The SBD principles, along with the common themes from the case studies, are then analyzed, and guidance is presented for implementing SBD into the Navy's 2-pass/6-gate acquisition governance process as dictated by the Secretary of the Navy acquisition instructions. Recommendations are provided on the system factors, such as program type and tool infrastructure, that provide a good fit for utilizing SBD. The cost and schedule differences between SBD and a typical point-based design approach are discussed. Finally, this report summarizes the findings and provides program managers and systems engineers an implementation method for SBD in DOD acquisition.