Abstract

As military budgets decline, opportunities to maintain economies of scale in weapon system production may increasingly depend upon Foreign Military Sales (FMS). FMS can also spread development costs among all customers, reducing the burden each must bear. A large scale weapon system integrator is in a unique position to observe the trends in FMS. A manufacturer based depot concept can lower up front acquisition costs in favor of higher future support expenditures. This maintenance approach may indeed be economically sound provided specific maintenance cost drivers, such as reliability and false alarm rates, meet their targets. While both domestic and FMS system customers are affected, the longer cycle times for FMS customers increase sensitivity. The Quick Indicator Technical Study (QITS) lifetime support cost analysis tool is used by Boeing to map the viability of support solutions by using historical trends in place of logistical data unavailable until much later in the design cycle. Omitting logistical data procurement for high probability manufacturer depot candidates and ensuring data procurement for high probability organic candidates allows procurement cost savings for the supported system. There is an FMS customer movement toward self sufficiency in the supply chain that may negate any purely economic analysis. Attentive weapon system suppliers should consider these customer requirements for maintenance and supply chain or face disqualification in an increasingly competitive global supplier landscape. Weapon system cost versus support cost in a zero or declining growth market are explored. Various strategies for reducing support costs for both domestic and FMS systems, specifically in the area of avionic repair, are discussed. System support scenarios ranging from total weapon system Original Equipment Manufacturer (OEM) depot support is contrasted against organic support. Hardware and software architectural features that reduce the cost of ownership for both manufacturer and organic support equipment are explored. System data interchange standards and management features are discussed within the context of reducing support cost by enabling transportability.

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