Posted by The Role of Value Engineering In Affordability Analysis
Methods and Models II Track
M2-22_Paper_TheRoleOfValueEngineeringInAffordabilityAnalysis_Redman
Abstract:
The purpose of this white paper is to describe the role Value Engineering plays within the affordability process. The paper is not a step by step “How To Conduct or Execute” Value Engineering (VE) but is a discussion of the context, input, setup, execution hints, and output of Value Engineering in support of conducting affordability analysis and management. As such it is important to understand the concept of affordability within the Systems Engineering paradigm. This paper is designed to provide insights, lessons learned, and suggestions for using Value Engineering in the affordability process.
Affordability is an abstract term that most people think they understand but have difficulty defining or explaining. The Department of Defense acquisition regulations require program managers to address affordability, detail affordability constraints, and achieve affordability during the procurement of new systems without providing a definition or even a clear idea of what affordability means. The Department of Defense has difficulty in defining affordability and therefore, it is no wonder that program managers have difficulty understanding or explaining the term. Perhaps the process of selecting an affordable product or service will yield some insights.
Author(s):
Quentin Redman
PRICE Systems
Quentin Redman is Independent Subcontractor – Business Development/ Marketing for PRICE Systems LLC, most recently working for Raytheon Space and Airborne Systems where he was the Technical Director/ Sr. Engineer Fellow of Systems Design and Architecture for 34 years. He developed cost information and analysis to support program managers, engineers, and IPD teams in making sound business, programmatic, and design decisions. His work was integral in establishing cost as a key parameter in the design process through the evaluation of economic impacts associated with various concepts and alternatives such as Design To Cost, Life Cycle Cost, Risk Analysis, and Cost As Independent Variable. Prior to joining Raytheon, Quentin worked in General Dynamics’ Advanced Cruise Missile and Martin Marietta’s Aerospace Advanced Development Division respectively. Redman’s MS is in Financial Management / Economics; his BS is in Engineering Technology. He served honorably with the California Army National Guard as a Staff Sergeant. Quentin currently serves as Vice President of ICEAA Southern California Board of Directors, served as Treasurer on the International Board of Directors for the International Society of Parametric Analysts, Government Accounting Office advisory panel for industry, and is a member of the California State University at Long Beach Student and Professors Advisory Board, an avid sports enthusiast and a ordained Elder.
Bob Koury
PRICE Systems LLC
Bob Koury is PRICE Systems’ US Army Programs Senior Solutions Architect supporting the US Army, NASA, and Lockheed Martin with more than 30 years of cost estimating, operations research analysis, and systems engineering expertise. Bob holds a Master of Science degree in Systems Management from the University of Southern California and a Master of Arts in National Defense and Strategic Studies from the Naval War College. Bob is a retired Lockheed Martin Senior Fellow and retired Army Officer (LTC Ret US Army) with 21+ years of service.
Joseph Bobinis
Paul Tuttle
Kevin Woodward
Hein B.A. de Jong