Please address improvement suggestions to: Note 2. Evolutionary acquisition is the preferred (but not only) acquisition approach. An evolutionary approach delivers an initial capability with the explicit intent of delivering improved or updated capability in the future. Block 1 provides the initial deployment capability while subsequent blocks (Block 2, Block 3, etc.) provide improved or updated capability. The acquisition strategy defines how each block will be funded, tested, produced, and operationally supported. Note 1. The actual entry point into the acquisition system will depend on the potential program's ability to meet the entrance criteria for the intended work effort, the demonstrated level of technology maturity, validated requirements (including urgency of user need), and affordability. The overall program structure (milestone reviews, phases, and work efforts) will be approved by the Milestone Decision Authority (MDA) for each individual program at program initiation. (Milestone B will normally be formal program initiation.) Larry Heller - Faculty Division Email: acq.chart@dsmc.dau.mil Defense Systems Management College (DSMC) Fort Belvoir, Virginia 22060-5565 DSMC CHART#3000R4 2001 

### To order copies or obtain

**digital files see back.** Requirements

Analysis

Verification System Analysis & Control (Balance)

Synthesis Functional Analysis/Allocation 

## Systems Engineering/ Supportability Analysis Process


# LOGISTICS **MANAGEMENT** Readiness & Total Ownership Cost Objectives

Product Support Management Plan Product Support Management Plan Product Support Management Plan Product Support Management Plan Evaluate Alternative Logistics Concepts

Support Concept Support Strategy Acquisition

Strategy



### Performance Based Logistics Inputs to:

•ORD

•TEMP

•APB

•Contract

Requirements Analysis

Verification System Analysis & Control (Balance)

Synthesis Functional Analysis/Allocation 

## Systems Engineering/ Supportability Analysis Process Influence Product Design for SupportabilityGOAL 1



### Design & Develop Support SystemGOAL 2 

### Acquire & Deploy Supportable SystemGOAL 3



### IOC Demonstrate Supportability & Life Cycle Affordability Demonstrate Supportability & Life Cycle Affordability 

## FACTORY **CLOSED FACTORY** 

**CLOSED** Modifications and Technology Insertion

Post Deployment Evaluations 

### Maintain/Improve Readiness & Improve AffordabilityGOAL 4



### Demil & Disposal

Demil

& Disposal Post Production Support 

# MANUFACTURING **& PRODUCTION** To Integrate Subsystems & Suppport into a complete System:

IMPLEMENT & REFINE To Obtain key Components & Subsystems: IDENTIFY, EVALUATE &

IMPROVE

MFG Process Mgmt. & Technology Advancements (Lean, e-Mfg, etc.) Design Producibility Requirements

& Goals MFG Capability Risk Reviews

(MCCRs) Scheduling System & Subsystems Production Strategies & Plans Industrial Capabilities

Analysis (Mandatory for

B and C Milestones)

MFG Risk Reduction Efforts such as Variation Control, Process, Proofing,etc. Key Supply Chain Quality Mgmt Structures MFG Process Capabilities (5 Ms) of Key Supply Chain

Members

To Modify, Extend, or Replace the

System: REVIEW & REVISE

MFG Process Mgmt. & Technology Advancements (Lean, e-Mfg, etc.) Design Producibility Requirements

& Goals Frequent MFG Capability Risk Reviews

(MCCRs) System & Subsystems Production Strategies & Plans Industrial Capabilities

Analysis (Mandatory for

B and C Milestones)

MFG Risk Reduction Efforts such as Variation Control, Process, Proofing,etc. Key Supply Chain Quality Mgmt Structures MFG Process Capabilities (5 Ms) of Key Supply Chain

Members

MFG Process Mgmt. & Technology Advancements (Lean, e-Mfg, etc.) Design Producibility Requirements

& Goals Frequent MFG Capability Risk Reviews

(MCCRs) System & Subsystems Production Strategies & Plans Industrial Capabilities

Analysis (Mandatory for

B and C Milestones)

MFG Risk Reduction Efforts such as Variation Control, Process, Proofing,etc. Key Supply Chain Quality Mgmt Structures MFG Process Capabilities (5 Ms) of Key Supply Chain

Members

To Provide, Spare, & Support

the System: CONTINUE &

ENHANCE

MFG Process Mgmt. & Technology Advancements (Lean, e-Mfg, etc.) Design Producibility Requirements

& Goals Frequent MFG Capability Risk Reviews

(MCCRs) System & Subsystems Production Strategies & Plans Industrial Capabilities

Analysis (Mandatory for

B and C Milestones)

MFG Risk Reduction Efforts such as Variation Control, Process, Proofing,etc. Key Supply Chain Quality Mgmt Structures MFG Process Capabilities (5 Ms) of Key Supply Chain

Members 

# TEST AND EVALUATION Evaluation Strategy TEMP TEMP Update TEMP Update Component T&E Prototype T&E EDM T&E Production Acceptance T&E Qualification T&E PQT&E Full-System Mission T&E Modification T&E Live Fire T&E (Vulnerability/Lethality)

OA FOT&E IOT&E Prod. Rep. T&E

LFT&E Waiver Full-Up Live Fire T&E

BLRIP Report to Congress LFT&E Report to Congress System Software Development (T

ailored Spiral Life cycle)

Computer Resources Support Plan Computer Resources Support Plan Updates Computer Resources Support Plan Updates 

# SOFTWARE **ACQUISITION MANAGEMENT**  System Concept(s) Initial Software

Req'ts. Info. Superiority Interop. Req'ts.

JOA Clinger-Cohen Act (CCA) JT A MAIS CCA Certification MAIS Economic Analysis

Software Support Planning C4ISP JT A Spiral-Driven

Software Development
System Architecture Evolutionary or Single-Step Acq. Strategy

ORD Computer Resource Req'ts. System
Spiral-Driven

Software Development

Prototype Maturation SW-CMM Level III

SW Developers Commercial SW Development Stds. Info. Assurance Acceptability SDP

Software Operations and Support JT

A

DII COE

SW-CMM Level III SW Developers Software Maturity Assessment

SDP SW Transition Plans (STrP) Implement SW Support PDSS Agency

Software Releases System System Concept(s) Initial Software

Req'ts. MNS

IT System Registration DII-COE 

# SYSTEMS **ENGINEERING** Concept 

### Configuration Management Baselines

Technical Management Plan (TMP) Alternative Concepts System Functional Baseline Allocated Baseline

Reduced Risk

Alternative Subsystems

Detailed Design Refined Final Detail Modifications Product Improvements Evolutionary Development Deficiency Correction

Product Improvement Design Documentation Necessary for Production Complete

Gain Thorough Familiarity with Threat and Operational Requirements Reassess Threat Reassess Threat Reassess Threat Reassess Threat Preplanned Product Improvement (P3 I)

Design Reviews and Audits

Program Definition

System Performance Specification ASR Update

SRR SFR SSR PDR CDR TRR FCA SVR PCA

System Threat Assessment Mission Need Statement System (Product) DefinitionThe Common ThreadLinking ALL Disciplines Update

Item Performance Specifications Item Detail Specifications Engineering Change Reviews Product Baseline Contractor Sets Draft

Alternative Concepts One or More Concepts, Design

Approaches, and/or Parallel Technologies Deployed System

Production

Design Update

Stable, Interoperable, Producible, Supportable,

Cost-effective Design Modernized System

Modifications Operational Capability That Satisfies Mission Needs Operational Requirement

Document

(ORD) Requirements Generation System Note: Technical reviews may be tailored based on system maturity and need. Government Approves

System Threat Assessment Operational Requirement

Document

(ORD) **Requirements Analysis** 

**Verification System Analysis**  **& Control (Balance)** 

**Synthesis Functional**  **Analysis/Allocation** 

## Systems Engineering Process **Requirements Analysis** 

**Verification System Analysis**  **& Control (Balance)** 

**Synthesis Functional**  **Analysis/Allocation** 

## Systems Engineering Process **Requirements**

**Analysis**

**Verification System Analysis**  **& Control (Balance)** 

**Synthesis Functional**  **Analysis/Allocation** 

## Systems Engineering Process **Requirements Analysis** 

**Verification System Analysis**  **& Control (Balance)** 

**Synthesis Functional**  **Analysis/Allocation** 

## Systems Engineering Process **Requirements Analysis** 

**Verification System Analysis**  **& Control (Balance)** 

**Synthesis Functional**  **Analysis/Allocation** 

## Systems Engineering Process Cost Estimation Methods = % of time used **Planning,Programming & Budgeting System** 



## Analogy Parametric Engineering Actuals LCC



## Detailed Estimating Note: PPBS & Enactment are Calendar-Driven Processes. Planning and Programming include estimates for outyears.



## Planning Programming Budgeting Execution Enactment Programming Budgeting Planning Execution Enactment Programming Budgeting Planning Execution Enactment Programming Budgeting Planning Execution Enactment Planning Programming Budgeting Execution Enactment Programming Budgeting Planning Execution Enactment Programming Budgeting Planning Execution Enactment Programming Budgeting Planning Execution Enactment POM Yr A POM Yr B POM Yr C POM Yr D POM Yr W POM Yr X POM Yr Y POM Yr Z



# FUNDS **MANAGEMENT** ESTIMATE ESTIMATE ESTIMATE



## Gross Estimating *M

M 

### - =

+M

-M 1 2 3

4 5 6

7 8 9

00 0 ¥ % Ö



### +

= x ON

CE

C .99 1.75 3.16 28.03 7.15 2.90



## RDT&E (Advanced Technology Development) 

## RDT&E (Demonstration Validation) 

## RDT&E (EMD) 

## RDT&E/Proc. MILCON (EMD) 

## Procurement O & M / MILPERS E C P s Study Contracts RFP SOW/SOO SYS SPEC CDRL etc. Draft RFP

Presolicitation Conference RFP SOW/SOO DEV SPEC CDRL etc. Draft RFPDevelopmentContractDemonstrationContract



## Contract

Type Cost Type or Firm Fixed Price (Level of Effort) Cost Plus Incentive Fee Fixed Price Incentive Firm Cost Plus Award Fee Cost Plus Fixed Fee Cost Plus Incentive Firm

Cost Plus Award Fee Fixed Price Incentive Firm Firm Fixed Price Fixed Price Incentive Firm Firm Fixed Price

Nature of Effort Follow-onProductionUpgrade/ Sustainment

Contract Presolicitation Conference RFP SOW/SOO PROD SPEC CDRL etc. Draft RFP

Presolicitation Conference RFP SOW/SOO SPEC CDRL etc. DRAFT

RFP

Presolicitation Conference E C P s E C P sContract TypeSelection 

# CONTRACT MANAGEMENT

Production (Well-defined Requirements) Follow-On Production Upgrade/SustainmentProductionContract



# Research (Very Broad Requirement) Demonstration Development 

# EARNED VALUE MANAGEMENT EARNED VALUE MANAGEMENT FOR EACH CONTRACT **Evaluate Status**  - IBR - C/SSR - CPR - Schedule - WBS **Best Value Award**  - Integrated Processes - Past Performance - Management **Gov't Mgmt Needs**  - Integrated Planning - Resources - Teams **Contract Approach**  - Criticality - EVMS - Type - Size **Evaluate Status**  - IBR - C/SSR - CPR - Schedule - WBS **Best Value Award**  - Integrated Processes - Past Performance - Management **Gov't Mgmt Needs**  - Integrated Planning - Resources - Teams **Contract Approach**  - Criticality - EVMS - Type - Size **Evaluate Status**  - IBR - C/SSR - CPR - Schedule - WBS **Best Value Award**  - Integrated Processes - Past Performance - Management **Gov't Mgmt Needs**  - Integrated Planning - Resources - Teams **Contract Approach**  - Criticality - EVMS - Type - Size 

## Team Success Factors Personality Type Empowerment Team Dynamics Conflict Management & Strategies Acquisition Strategy Development & Maturation

Provisional PMO PMO Organization Established (Charter, IPPD & IPT Structure) Requirements Analysis 

# Planning

**Organizing & Staffing**

**Controlling** 

# PROGRAM MANAGEMENT **AND LEADERSHIP**

**Leading** Business Process Re-engineering Strategies

Strategic Planning, Team Building, Systems Integration, Change Management Problem Solving/Decision Support Techniques (e.g., Risk Assessment, Decision Analysis)

Risk Management & Program Review Activities (e.g., JROC, OIPT, DAB Reviews; SAR & DAES Reports; IBR,EVMS) Program Control Tools (e.g., Schedules; Configuration Management; IDE; APB)

PMO Staffing/Personnel Management Functional Plan Development & Maturation

Acquisition Strategy Execution and Reporting 200 195 190 185 180 175 170 165 160 155 150 Millions of Dollars

1992 1991 1990 Production Costs

Unit Price

Profits



## Interpersonal Communications 360oFeedback 

# DEFENSE ACQUISITION MANAGEMENT FRAMEWORK

Activities



## Phases 

# Concept & Technology Development **System Development & Demonstration Production & Deployment**  **Operations and Support**
Interim Progress Review Decision Review FRP Decision Review Reviews 

# Concept **Exploration Component**  **Advanced Development**  **System Integration**  **System Demonstration**  **Low-Rate Initial Production**  **(LRIP) Full-Rate**  **Production & Deployment**  Work Efforts

Paper studies of alternative concepts for meeting a mission Development of subsystems and components that must be demonstrated before integration into a system System integration of demonstrated subsystems and components Reduction of integration risk Demonstrate engineering development models or integrated commercial items Combined DT/OT IOT&E, LFT&E of production representative articles Establish full manufacturing capability
Execute low-rate initial production Execute full-rate production Deploy system Monitor readiness and sustainability of deployed system Support fielded system Modify/upgrade system as required Disposal, demilitarization, detoxification, waste storage and/or recycling (as applicable)

Specific concept to be pursued and technology exists System architecture and technology demonstrated in relevant environment System prototype  demonstrated in a relevant  environment (e.g., first flight) System demonstrated in its intended environment System operationally effective, suitable and ready for full-rate production 

# PRE-SYSTEMS ACQUISITION **SYSTEMS ACQUISITION SUSTAINMENT** 

Full operational capability; deployment complete End of economic or physical service life Validated and approved MNS Concept in hand, but system architecture to be developed Architecture complete, butcomponents need to be integrated into complete system System prototypes demonstrated in relevant  environment Technically mature No significant manufacturing  risk Acceptable interoperability Acceptable operational  supportability 

# Sustainment **Disposal** Milestones 

# A **B C**  IOC FOC 

# A **B Technology Opportunities & User Needs** 

Evolutionary Acquisition See Note 2 below


### BLOCK 1 

## PURPOSES OF WORK EFFORT

ENTRANCE CRITERIA

DESIRED OUTCOMES 

# ACQUISITION POLICY See Note 1 below

BLOCK 2 

## BLRIP & LFT&E reports prior to FRPDR Successful FRPDR Fielded system

Operationally capable ready system Disposed of system