A Simulation Model for Setting Terms for Performance Based Contract Terms

Download
Author
Sodhi, Manbir
Jester, Better
Ferguson, James C.
Bussiere, Marie E.
Date
2010-04-30Metadata
Show full item recordAbstract
This paper sets forth a model-based approach for selecting terms applicable to a heavyweight torpedoes (HWT) Performance Based Logistics (PBL) contract capable of addressing both near- and long-term support considerations over the torpedo life cycle. Several performance measures commonly used in PBL contracts are described, and a model is presented that is based on an availability metric. This metric is calculated using the number of times a required part is not available at field maintenance sites. The metric is computed at the Functional Item Replacement (FIR) or modular level of replacements. The contractor is made responsible for maintaining an inventory of parts on the shelf at the maintenance locations. This is referred to as the Coordinated Shipboard Allowance List (COSAL), which is not to exceed a negotiated maximum. Terms of the contract are not specified with regard to lead times such as logistical delays and manufacturing and restocking lags. These times are assumed to be under the contractor control as are production quantities, quality, and responsiveness. A newsvendor approach for determining optimal shelf inventory levels is first developed. An augmented model is evaluated using a simulation to determine the performance sensitivity to changes in product quality, demand rates, and various supply chain related lead times. Practical collateral issues such as obsolescence, reliability, and cost are also discussed. This concept is being evaluated as a possible go-forward supportability strategy for the MK48 Common Broadband Advanced Sonar System (CBASS) Torpedo.
Description
Proceedings Paper (for Acquisition Research Program)
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.NPS Report Number
NPS-AM-10-039Related items
Showing items related by title, author, creator and subject.
-
AN ANALYSIS OF METRICS TRENDS IDENTIFIED BY THE ARMY'S OPERATIONAL SUSTAINMENT REVIEWS
Meickle, David W. (Monterey, CA; Naval Postgraduate School, 2019-09);This research provides an analysis of sustainment metrics and their application by product support managers (PSMs) within the context of the Army's operational sustainment review (OSR) process. The research explored the ... -
A Performance Metric and Goal-Setting Procedure for Deadline-Oriented Processes
Doerr, Kenneth Howard; Gue, Kevin R. (Production and Operations Management, 2013);A performance metric and goal-setting procedure is defined for an order fulfillment operation. In this operation, order requests arrive continuously, and filled orders are shipped at a specific time each day. The metric ... -
Transmit Energy Efficiency of Two Cognitive Radar Platforms for Target Identification
Romero, Ric; Mourtzakis, Emmanouil (2015-06-26);Cognitive radar (CRr) is a recent radar paradigm that can potentially help drive aerospace innovation forward. Two specific platforms of cognitive radar used for target identification are discussed. One uses sequential ...