Value Engineering (VE) in the DoD: An Overview. Nicholas Torelli Director, Mission Assurance Systems Engineering SAVE Conference June 2012. History of Value Engineering in the Department of Defense.
Director, Mission AssuranceSystems Engineering
SAVE ConferenceJune 2012
VE Application at Enterprise-wide/Program Level AchievesCost Savings during Acquisition/Operations/Sustainment
Each executive agency shall establish and maintain cost-effective procedures and processes for analyzing the functions of a program, project, system, product, item of equipment, building, facility, service, or supply of the agency. The analysis shall be –
(1) performed by qualified agency or contractor personnel; and
(2) directed at improving performance, reliability, quality, safety, and life cycle costs.
There is direct VE application to all five Efficiency Initiatives.
FY 11 Savings and Cost Avoidance $4.7B
Innovation, Speed, and Agility
The ESSM is an advanced radar-guided missile with a high explosive warhead used for surface-to-air anti-missile defense. A now-obsolete mechanical safe and arming fuze prevents an unintended missile launch and, once launched, arms the warhead when the proper stimuli are received. Suppliers for this obsolete component were limited and costs were high since highly skilled personnel were needed for the complex manufacturing process and a new fuze design was cost prohibitive.
The function of the fuze was analyzed by the contractor and compared with alternative electronic fuzes being manufactured on other programs. An existing fuze was identified from the sidewinder missile that could be adapted to the ESSM. A VECP was submitted to adapt the Sidewinder electronic fuze to the ESSM application.
* FY12 Constant Dollars