Value Engineering Reduced Costs on the STANDARD Missile Program

Value Engineering Reduced Costs on the STANDARD Missile Program

Organization: NAVSEA, PEO (TSC)

Team Name: PEO(TSC) Raytheon Value Engineering Team

Related Acquisition Topic(s): Acquisition Practices Streamlining, Commercial and Non Developmental Items (CANDI), Financial Management, Integrated Product Teams (IPT), Integrated Product and Process Development (IPPD)

Description:

Savings/Cost Avoidance: Raytheon Systems Company Value Engineering Change Proposals (VECPs) saved $117.3 million in FY00, net to the Navy. The known Return on Investment is 5.6:1. Raytheon is an active participant in a joint Government/Contractor Value Engineering Integrated Products Team (VEIPT). The purpose of this team is to increase Value Engineering (VE) participation across Raytheon Systems Company product lines. This VEIPT will provide synergies from various programs and increase savings to the DoD. The following paragraphs are a Summary of Significant Value Engineering Proposals (VEPs) /VECPs.

• Raytheon Systems Company, Tucson, VECP SMCO-034, Plate 3A AEGIS Transceiver Producibility. Prior to VE: AEGIS Link design required eleven testable levels. Following VE: Redesign of AEGIS Link used a higher scale integration to reduce the number of testable levels to seven. Savings to the Government are $34.0 million. Status: Implemented
• Raytheon Systems Company, Tucson, VECP R001, Steering Control Section/Thrust Vector Assembly (SCS/TVA). Prior to VE: The SCS/TVA for STANDARD Missile variants contained unique parts that increased unit costs, and complicated production activities. Following VE: These assemblies were redesigned for higher scale integration, parts commonality and producibility. The result of these efforts will save the Government $83.3 million. Status: Implemented
• Raytheon Systems Company, Tucson,VEP TI-081, Common Receiver Update. Prior to VE: The Plate1 Receiver for the Block IIIA/IIIB variant of the STANDARD Missile has interspersed channels. Following VE: This VE eliminates the interspersed channels from this STANDARD Missile variant. Savings on this VEP are TBD. Status: VECP preparation
• Raytheon Systems Company, Tucson, VEP TI-105, Common Computer. Prior to VE: Three variants of the STANDARD Missile, Block IIIA, IIIB, and IV do not have a common DSP. Following VE: This VE develops a common DSP for these three variants. Savings to the Government for this common computer are TBD. Status: Systems Design and Requirements Review
• Raytheon Systems Company, Tucson,VEP TI-090, Common Battery. Prior to VE: A variant unique battery plus a supplemental battery were planned for use in the STANDARD Missile Block IVA. Following VE: This effort will incorporate the use of the lower cost battery used in the STANDARD Missile Block III into the Block IV variants. The battery used in the STANDARD Missile 3 will also be used in the IVA in place of the more expensive supplemental battery. Savings to the government for this effort are TBD. Status: Critical Design Review
• Raytheon Systems Company, Tucson,VECP SS-3085, Rig Seeker Head. Prior to VE: Uncontrolled cost growth and an obsolete product line were affecting the production of RIGs in the seeker head for the STANDARD Missile. Following VE: The new gyroscopes identified for this effort cost half of the units identified prior to this VE. Approximately $6 thousand will be saved per missile with these new units. Status: VECP Review
• Raytheon Systems Company, Tucson, VECP TBD, Autopilot Battery Section Inertial Instrument Unit (IIU). Prior to VE: The IIUs on variants of the STANDARD Missiles had unique IMUs. Following VE: In conjunction with MANTECH APBS Electronic Assembly demonstration, a redesign of the IIU using higher scales of integration and a common IMU will be accomplished. The results of this VE will be improved reliability and maintainability. This VE is a joint Navy/contractor effort. Cost savings to the Government have not been negotiated. Status: Preliminary Design Review
• Raytheon Systems Company, Tucson, VECP TBD, IR Mirror. Prior to VE: The STANDARD Missile Block IIIB IR Assembly had a unique, highly expensive platinum-cobalt mirror structure. Following VE: This effort provides a replacement to this mirror with a piece-part approach using Tungsten, aluminum, and neodymium which is similar to those used in other recently designed applications. Savings to the Government are substantial but the exact savings are TBD. Status: Approved for development
• Raytheon Systems Company, Tucson, VEP TBD, Warhead Compatible Telemeter (WCT) Transmitter. Prior to VE: The AN/DKT WCT Transmitter was a unique military design. Following VE: This transmitter was replaced by a commercial off-the-shelf (COTS) transmitter that met or exceeded all military requirements. The net acquisition savings of $3.6 will be realized. Status: Implemented.

NAVSEA, PEO (TSC)

PEO(TSC) Raytheon Value Engineering Team