The U.S. Navy recently conducted an analysis of alternatives (AOA) to set the stage for determining the characteristics and acquisition strategy for its next generation aircraft carrier. The platform design selected i...
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The U.S. Navy recently conducted an analysis of alternatives (AOA) to set the stage for determining the characteristics and acquisition strategy for its next generation aircraft carrier. The platform design selected is expected to be in service throughout the 21st century. The parameters under consideration for change in the new carrier design lie in the areas of propulsion and electric power generation, aviation, survivability, service life, and total ownership cost (TOC) reduction. The issue of affordability is paramount This paper focuses on the need for the program management office and its supporting cost analysis staff to understand the life cycle cost (LCC) of the existing and proposed future aircraft carriers and to then translate these LCC's into meaningful information for cost-conscious decision making. The challenge is to relate the LCC in terms the key decision-makers and the engineering team can use to satisfy their respective roles. Thus, it is necessary to translate the results of the given ship design alternative LCC's into the paradigms of the respective stakeholders: Fleet User (operators of aircraft carriers) Ship designers (translators of the fleet operator requirements) Program Sponsors (providers of the funding resources) Program Management Office, Ship builder and Supporting Industry (executors of the acquisition and construction of the ship) Navy and OSD decision-makers (overseers of program execution) The paper describes the aircraft carrier LCC breakdown structure that has resulted, in part, from a recent navy/shipbuilder integrated product team effort to capture total ownership costs. The structure has been used in the AOA as a tool to identify cost drivers and to add the time element to the cast equation in order to perform return on investment and program affordability analysis. The expanded ship work breakdown structure (ESWBS) has emerged as the central backbone of the cost work breakdown for AOA work. The ESWBS structure is a natural
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