1293. Designing to Life Cycle Cost in the Hornet Program

Paper

Abstract

A primary requirement of the Hornet program is significant reduction in life cycle cost (LCC) from current Navy systems. This paper describes the design and management techniques used by the Navy and McDonnell Aircraft Company (MCAIR), the Hornet prime contractor, to develop a new fighter/attack system at an affordable life cycle cost.
Much of the Hornets program’s success in LLC control can be credited to firm reliability and maintainability (M) guarantees which will be demonstrated during Full Scale Development. Another important program feature is that substantial R, M, LCC and program management incentives (totaling $39M) which MCAIR can earn.
Designing to Life Cycle Cost requires the designer to consider key elements of LCC(R, M Unit production cost, and logistics support cost elements such as GSE, sparies, training, etc.) in parallel with this traditional concerns with weight and performance. MCAIR’s multi-disciplined trade studies resulting in relatively larc LCC avoidances are summarized in this paper. LCC avoidances of $260 million have been documented to the point in the Hornet program
Another key LCC control technique is designing and testing to a realistic Operational Mission Environment (OME). Consideration of LCC factors in the supplier selection process has also resulted in large cost saving.
The Hornet will significantly reduce operating and support costs as shown by comparison with the O&S costs of the F-4J and A-7E. The paper concludes with a summary of lessons learned during the Hornet program.