BEEN THERE, DONE THAT
threads, comprise activities that PMs must manage to ensure the thorough planning and careful monitoring of manufacturing. Te threads and sub-threads are:
• Technology and industrial base. • Design. • Cost and funding. • Materials. • Process capability and control. • Quality management. • Manufacturing workforce, including engineering and production.
• Facilities. • Manufacturing management.
Knowledge Management. Since 1998, GAO has emphasized the importance of a shared understanding of critical knowledge by the PM, the intermediate acquisition chain of command and the acquisition authority at selected program decision reviews (such as milestone B) before allowing a developmental acquisi- tion program to proceed to its next step. In 1998, three knowl- edge points began to take shape and have since become more detailed and useful, as shown in GAO’s 2015 “Defense Acquisi- tions” annual report. Tey are:
• Knowledge Point 1: Technologies, time, funding and other resources match customer needs. Decision to invest in prod- uct development.
• Knowledge Point 2: Design is stable and performs as
expected. Decision to start building and testing production- representative prototypes.
• Knowledge Point 3: Production meets cost, schedule and quality targets. Decision to produce first units for customer.
Te shared knowledge is likely to improve risk reduction at the three points and increase confidence in decision reviews to con- sider advancing an acquisition program to its next developmen- tal phase. (See Figure 4, Page 143)
GAO is right about program knowledge point management. Te definitions are clear, and the specific review points align easily to milestone B, the critical design review and milestone C. Although the terminology of knowledge point management and GAO’s specific recommendations have not carried over com- pletely into DODI 5000.02, its companion document, DOD Directive 5000.01, is consistent with GAO’s intent, as in the following extract:
E1.1.14. Knowledge-Based Acquisition. PMs shall provide knowledge about key aspects of a system at key points in the acquisition process. PMs shall reduce tech- nology risk, demonstrate technologies in a relevant environ- ment, and identify technology alternatives, prior to program initiation. Tey shall reduce integration risk and demonstrate product design prior to the design readiness review. Tey shall reduce manufacturing risk and demonstrate producibility pri- or to full-rate production.
Te OSD policy guidance is clear, but not as specific as GAO recommends; in retrospect, acquisition leaders have a track re- cord of too readily ignoring a lack of “program knowledge” and forging ahead optimistically, hoping that missing knowledge will somehow materialize when necessary. Ignoring knowledge points appears misguided, however; the defense acquisition landscape is littered with programs that did not have sufficient
“knowledge” to support success at the next acquisition step but were authorized to move forward anyway.
Beyond poor test results, the outcomes have been program cost growth, schedule delays, warfighting systems that only margin- ally perform their missions, unexpectedly high maintenance and retrofit costs, unachievable readiness goals and even systems that have been produced but cannot be deployed because they are unsuitable or ineffective. GAO has described some of these problems in its ongoing study of high-risk programs.
In my opinion, the expectation within the acquisition commu- nity is that PMs typically push their programs forward unless their leadership tells them to halt. Terefore, if a program is not ready to move to the next developmental phase, the mile- stone decision authority has to be tough and disciplined, not approving advancement of the program to the next acquisition phase until it meets its knowledge requirements, to ensure a reasonable likelihood of success.
From my perspective, the elephant in the room is DOD’s propensity to launch “mega” programs that are beyond its ability to manage successfully.
144 Army AL&T Magazine January-March 2017
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