$


FIRST OF ITS KIND


PFC Brent Rhodes, a cannon crew member assigned to Field Artillery Squadron, 2nd Cavalry Regi- ment, fires an M777A2 howitzer system during the first firing of a PGK-enabled artillery system in Germany, near Grafenwoehr, in July 2015. Using clean-sheet analysis—a kind of should-cost analysis that delves into why an item should cost what it does—helped PEO Ammunition ascertain that the government was paying the right price for this sole-sourced capability. (U.S. Army photo by SGT William A. Tanner)


currency exchange and taxes. Te more detail included in the model, the more useful it is. Tis creates more opportunities to improve processes and design and provides compelling leverage when negotiating with suppliers.


Obtaining data to perform a clean-sheet analysis can be challeng- ing. Terefore, a well thought-out strategy must be developed early in the effort to obtain a complete set of parts for analysis, gain visibility into major components, contractor cost and pric- ing data, and build processes. Nondisclosure agreements will ensure that contractors’ confidential and proprietary informa- tion is protected. Funding must be allocated if a consultant will be used. Various components of the product also may need to be torn down and analyzed in order to determine raw material and manufacturing processes that contribute to unit cost.


Clean-sheeting is an intense process requiring time, resources and subject-matter expertise. To be successful, the government must build an integrated project team to lead and support the clean- sheet effort. Tis team must have a dedicated government team


lead and, at a minimum, consist of financial analysts, engineers and product subject-matter experts. Partnering with a third-party consultant to provide manufacturing and modeling expertise can be beneficial. Participation by the prime contractor is essential to understanding the design and manufacturing process.


OUTPUT YIELDS INSIGHTS Te clean-sheet provides insight on costs at both the compo- nent and final assembly levels. Figure 1 shows a gap between the clean-sheet should-cost price and the current price, as well as the various costs included in the clean-sheet price.


Figure 2, on Page 108, dives deeper into details of the cost gaps. With the knowledge obtained from clean-sheeting, the PM has the insight to make better-informed decisions on the program’s acquisition strategy, as well as to develop better positions in future negotiations. In addition, the knowledge gained from the clean-sheet process can be leveraged to identify opportuni- ties to comply with Better Buying Power initiatives—including “achieve affordable programs,” “achieve dominant capabilities


ASC.ARMY.MIL 107


BBP 3.0


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196  |  Page 197  |  Page 198  |  Page 199  |  Page 200  |  Page 201  |  Page 202  |  Page 203