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Limited Electronic Distribution Rights Visit RAND at www.rand.org Explore the RAND Arroyo Center View document details For More Information This PDF document was made available from www.rand.org as a public service of the RAND Corporation. 6 Jump down to document THE ARTS CHILD POLICY CIVIL JUSTICE EDUCATION ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE INTERNATIONAL AFFAIRS NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY SUBSTANCE ABUSE TERRORISM AND HOMELAND SECURITY TRANSPORTATION AND INFRASTRUCTURE WORKFORCE AND WORKPLACE The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. Purchase this document Browse Books & Publications Make a charitable contribution Support RAND This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND mono- graphs undergo rigorous peer review to ensure high standards for research quality and objectivity. Thomas Held, Bruce Newsome, Matthew W. Lewis Prepared for the United States Army Approved for public release; distribution unlimited ARROYO CENTER Commonality in Military Equipment A Framework to Improve Acquisition Decisions The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R ® is a registered trademark. © Copyright 2008 RAND Corporation All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. Published 2008 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: order@rand.org The research described in this report was sponsored by the United States Army under Contract No. W74V8H-06-C-0001. Library of Congress Cataloging-in-Publication Data is available for this publication. ISBN 978-0-8330-4550-8 iii Preface In recent years, the U.S. Army has become increasingly interested in “commonality”—the sharing of common parts across different enti- ties. Commonality has implications for procurers, designers, develop- ers, trainers, logisticians, and users. Although usually touted as a good thing, commonality can lead to outcomes that are both negative and positive, but these outcomes are less often acknowledged or under- stood. ey require nuanced decisionmaking. is report assesses the consequences of commonality and pro- vides recommendations to help enable the Army to maximize the benefits associated with commonality while avoiding the negative consequences. is research was sponsored by the Director of the Requirements Integration Directorate, Army Capabilities Integration Center, and was conducted within the RAND Arroyo Center’s Military Logistics Pro- gram. RAND Arroyo Center, part of the RAND Corporation, is a federally funded research and development center sponsored by the United States Army. e Project Unique Identification Code (PUIC) for the project that produced this document is ATFCR06052. For more information on RAND Arroyo Center, contact the Director of Operations (telephone 310-393-0411, extension 6419; FAX 310-451-6952; email Marcy_Agmon@rand.org), or visit Arroyo’s Web site at http://www.rand.org/ard/. v Contents Preface iii Figures vii Tables ix Summary xi Acknowledgments xxiii Abbreviations xxv CHAPTER ONE Introduction 1 Project Goals 3 Commonality Definitions and Levels 4 Organization of is Document 6 CHAPTER TWO e Effects of Commonality on Operations 7 Operational Consequences of Commonality 8 System Capability 8 Design Options 9 An Infantry Weapon Example 13 CHAPTER THREE e Cost Effects of Commonality 21 Component-Related Costs 22 R&D Costs 22 Parts Costs 23 Supplier Costs 23 vi Commonality in Military Equipment: Improving Acquisition Decisions Order Costs 24 Inventory Holding Costs 24 Example of Inventory Cost Reduction: Ground Vehicle Engines 25 e Best Candidates for Reducing Costs rough Commonality 29 Complex, Expensive Items: e Greatest Cost Opportunity by Spreading the R&D Cost over Multiple Items 29 High-Demand Items at Have Similar Specifications 29 Effects of Commonality on Training Costs 30 Training Impacts of Commonality in the Commercial Sector 30 Training Impact Assessment and Organizational Design 32 Models of Skills and Skill Acquisition in Training/Education and Probable Areas of Training Savings Per Skill 34 Training Impact Estimation (TIE) Methodology to Assess Training Impacts of Commonality for Army Systems 35 Example from Small Arms: A Case Study Assessing Hypothetical Training Effects from Differentiated Versus Modular Rifles and Light Machine Guns 36 Conclusions Regarding Training Impacts of Commonality for Army Systems Development 40 Impact of Commonality on Maintenance Personnel Costs 40 CHAPTER FOUR e Effects of Commonality on Logistics 45 CHAPTER FIVE An Aid to Commonality Decisionmaking 49 Model Plan 51 Differentiation Plan 55 Commonality Plan 56 Base Model Plan 57 CHAPTER SIX Recommendations 59 Bibliography 61 vii Figures S.1. Capability-Based Commonality Decisionmaking Aid xix 2.1. Stoner 63A Weapon System 15 3.1. Variability in Selected Engine Demands Across Time 26 3.2. Notional Training Impact as Determined by Training Time Per Skill and Degree of Cross Training 32 3.3. e Effect of a Combined MOS on Mechanic Supply Variability 44 4.1. RO Levels for Engines at a Heavy BCT 46 4.2. Component Commonality Example 47 5.1. Capability-Based Commonality Decisionmaking Aid 51 5.2. Model Plan Decision Flow 52 [...]... However, as an item becomes more specialized, it becomes less flexible Even if this lack of flexibility is considered acceptable when the item is first deployed, operational requirements can change over time Assessing the Costs of Commonality To assess the value of commonality, the Army needs to know how the use of common items affects costs Often greater commonality is automatically associated with lower costs . Impacts of Commonality for Army Systems 35 Example from Small Arms: A Case Study Assessing Hypothetical Training Effects from Differentiated Versus Modular Rifles. the item is first deployed, operational requirements can change over time. Assessing the Costs of Commonality To assess the value of commonality, the Army