Case study: readiness and total ownership cost analyses for new fighter aircraft, F-XX
Abstract
This case is intended to illustrate key trade-offs in planning the acquisition of a major weapon system. In
particular, the impact of logistics and maintenance decisions on life-cycle costs and readiness are examined.
The case provides sufficient data to allow a rich discussion of issues and trade-offs?without being
overwhelming. The case raises strategic policy issues but provides an analytical framework and data so
that the policy issues can be discussed in detail, and not merely with generalities. Logistics and
maintenance issues examined within the case include the critical protection (spare-part) levels and
reliability of major components, depot and preventive maintenance turnaround times, as well as planning
for exogenous factors such as variability in the price of petroleum, oil, and lubricants. By examining a set
of related decisions simultaneously, the case allows students to explore the relative leverage of logistics and
maintenance decisions on cost and readiness. By examining endogenous as well as exogenous factors, the
case allows students to examine the impact of factors within the control of program managers as well the
impact of factors beyond their control on budget and readiness risk. The intent of the case is to move
beyond planning simple budget and readiness targets and to encourage students to discuss methods of
robust contingency planning. Specific learning objectives include  an understanding of the
life-cycle cost implications of logistics and maintenance decisions  an understanding of the
readiness implications of logistics and maintenance decisions  an understanding of the trade-offs
between life-cycle cost and readiness  an understanding of the implications of logistics and
maintenance factors on readiness risk, and  an understanding of the implications of logistics and
maintenance factors on budget risk. The development of this case was supported by the Naval
Postgraduate School. This case was prepared by Dr. Keebom Kang and Dr. Kenneth Doerr for use in Dr.
Kang?s Logistics Engineering class at the Naval Postgraduate School. A teaching note is available for
instructors at educational institutions by requesting a copy from Dr. Kang.
Description
Acquisition Research Case Study
Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of
the Navy, the Department of Defense, or the Federal Government.
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
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