The supply chain in air capability acquisition by the New Zealand Defence Force : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Defence and Security Studies at Massey University, Manawatū, New Zealand

Over the last decade the New Zealand Government has acquired and introduced into operational service, two important platforms for air power capability, namely the new NH90, and SH-2G(I) Seasprite helicopters. The NH90 purchased new, and the Seasprite purchased second hand, are at different stages in their capability life cycles. The introductions of these aircraft have challenged support and sustainment within the Royal New Zealand Air Force (RNZAF) supply chain, which has been hampered by organisational factors such as the lack of capability and sustainment corporate knowledge, resource constraints, culture, and insufficient priority being given to Integrated Logistic Support (ILS) model In-Service. Equally aircraft specific issues such as their product maturity, and relationships also challenge the supply chain. The most significant level of aircraft acquisition is still yet to come as the Government progresses towards the replacement of the RNZAF surveillance and mobility capability. Therefore it is vital to understand the effect on support and sustainment from recent acquisitions

Cost engineering for manufacturing: current and future research

The article aims to identify the scientific challenges and point out future research directions on Cost Engineering. The research areas covered in this article include Design Cost; Manufacturing Cost; Operating Cost; Life Cycle Cost; Risk and Uncertainty management and Affordability Engineering. Collected information at the Academic Forum on Cost Engineering held at Cranfield University in 2008 and further literature review findings are presented. The forum set the scope of the Cost Engineering research, a brainstorming was held on the forum and literatures were further reviewed to understand the current and future practices in cost engineering. The main benefits of the article include coverage of the current research on cost engineering from different perspectives and the future research areas on Cost Engineering

On the change of cost risk and uncertainty throughout the life cycle of manufacturing products

In practice cost estimators typically assume that cost risk and uncertainty continuously decrease across the whole product life cycle. Industry case studies and semi-structured interviews indicate that while cost risk and uncertainty decreases between technology readiness levels / stage gates, it increases when technology readiness levels / stage gates change. This increase can lead to cost risk and uncertainty levels above those at previous technology readiness levels / stage gates. This difference between assumptions in practice and evidence from case studies and semi-structured interviews may lead to the over- and / or under-assignment of capital reserves over time, thus resulting in binding project capital unnecessarily and / or the need to increase projects budgets in an unplanned manner. Further research is suggested regarding the scale of changes in cost risk and uncertainty when technology readiness level changes / stage gates are arrived at in order to improve robustness of forecasting effort

A framework for geometric quantification and forecasting of cost uncertainty for aerospace innovations

Quantification and forecasting of cost uncertainty for aerospace innovations is challenged by conditions of small data which arises out of having few measurement points, little prior experience, unknown history, low data quality, and conditions of deep uncertainty. Literature research suggests that no frameworks exist which specifically address cost estimation under such conditions. In order to provide contemporary cost estimating techniques with an innovative perspective for addressing such challenges a framework based on the principles of spatial geometry is described. The framework consists of a method for visualising cost uncertainty and a dependency model for quantifying and forecasting cost uncertainty. Cost uncertainty is declared to represent manifested and unintended future cost variance with a probability of 100% and an unknown quantity and innovative starting conditions considered to exist when no verified and accurate cost model is available. The shape of data is used as an organising principle and the attribute of geometrical symmetry of cost variance point clouds used for the quantification of cost uncertainty. The results of the investigation suggest that the uncertainty of a cost estimate at any future point in time may be determined by the geometric symmetry of the cost variance data in its point cloud form at the time of estimation. Recommendations for future research include using the framework to determine the “most likely values” of estimates in Monte Carlo simulations and generalising the dependency model introduced. Future work is also recommended to reduce the framework limitations noted

A framework for cost evaluation in product service system configuration

Configuration systems are increasingly used as a means for efficient design of customised product service systems (PSS) to satisfy diverse customer needs. Cost evaluation is thereby important to assist the configuration engineers in making decisions on feasible configuration solutions. However, little research attention has been received until recently. To fill this gap, this paper contributes in developing a framework for cost evaluation in PSS configuration. A holistic view of PSS configuration, the three-dimensional PSS cost element, and a life cycle-oriented cost evaluation approach are successively proposed. The framework is thereby established with a number of parts, including the preparatory stage, the evaluation stage and the configuration stage. A pump PSS is illustrated to validate the developed framework. Four feasible configuration solutions in one configuration activity are evaluated and compared. The configuration engineers are thus assisted with the decision on selecting the one with the least cost

A through-life costing methodology for use in product-service-systems

Availability-based contracts which provide customers with the use of assets such as machines, ships, aircraft platforms or subsystems like engines and avionics are increasingly offered as an alternative to the purchase of an asset and separate support contracts. The cost of servicing a durable product can be addressed by Through-life Costing (TLC). Providers of advanced services are now concerned with the cost of delivering outcomes that meet customer requirements using combinations of assets and activities via a Product Service System (PSS). This paper addresses the question: To what extent are the current approaches to TLC methodologically appropriate for costing the provision of advanced services, particularly availability, through a PSS? A novel methodology for TLC is outlined addressing the challenges of PSS cost assessment with regard to 'what?' (cost object), 'why/to what extent?' (scope and boundaries), and 'how?' (computations). The research provides clarity for those seeking to cost availability in a performance-orientated contractual setting and provides insight to the measures that may be associated with it. In particular, a reductionist approach that focuses on one cost object at a time is not appropriate for a PSS. Costing an advanced service delivered through a PSS is a problem of attributing the value of means to the economic activities carried out for specific ends to be achieved. Cost results from the interplay between monetary and non-monetary metrics, and uncertainties thereof. Whilst seeking to ensure generality of the findings, the application of TLC examined here is limited to a military aircraft platform and subsystems. © 2014 Elsevier B.V. All rights reserved

A geometrical framework for forecasting cost uncertainty in innovative high value manufacturing.

Increasing competition and regulation are raising the pressure on manufacturing organisations to innovate their products. Innovation is fraught by significant uncertainty of whole product life cycle costs and this can lead to hesitance in investing which may result in a loss of competitive advantage. Innovative products exist when the minimum information for creating accurate cost models through contemporary forecasting methods does not exist. The scientific research challenge is that there are no forecasting methods available where cost data from only one time period suffices for their application. The aim of this research study was to develop a framework for forecasting cost uncertainty using cost data from only one time period. The developed framework consists of components that prepare minimum information for conversion into a future uncertainty range, forecast a future uncertainty range, and propagate the uncertainty range over time. The uncertainty range is represented as a vector space representing the state space of actual cost variance for 3 to n reasons, the dimensionality of that space is reduced through vector addition and a series of basic operators is applied to the aggregated vector in order to create a future state space of probable cost variance. The framework was validated through three case studies drawn from the United States Department of Defense. The novelty of the framework is found in the use of geometry to increase the amount of insights drawn from the cost data from only one time period and the propagation of cost uncertainty based on the geometric shape of uncertainty ranges. In order to demonstrate its benefits to industry, the framework was implemented at an aerospace manufacturing company for identifying potentially inaccurate cost estimates in early stages of the whole product life cycle

Enabling prosperity: success factors in Indigenous economic development

Public discussion about ‘closing the gap’ between Indigenous and non-Indigenous Australians tends to focus on measures such as life expectancy, child mortality, early childhood education, literacy and numeracy, and employment.  These are, rightly, essential markers of health and well-being for all people, and for decades they have provided evidence that Australia’s health and social systems have not met the needs of Indigenous Australians. However, there is another story, one that focuses on the measures of success, as evident in the many thriving Indigenous businesses and corporations around the country.  Across Australia, there is a growing story of economic security and success, in which Indigenous Australians are creating enterprises combining sound business principles with strong cultural and social foundations for the benefit of individuals, families and communities. Urbis was commissioned by Westpac to undertake research into Indigenous business development, to provide an evidence base to support the work of the Empowered Communities group. The report, Enabling Prosperity: Success Factors in Indigenous Economic Development, suggests that these factors are much the same as for any other businesses: human capital, access to capital and markets, infrastructure, location and an authorising environment created through government policy and regulation. In practice, businesses succeed because of more than one factor, and multiple factors can strengthen the capacity of a business to grow and develop.  For instance, access to capital often relies on the development of successful partnerships, while ownership of land and resources requires human capital to realise its potential. Indigenous culture can be both a support and a resource. Individual attitude and vision are also essential ingredients in business success, while government plays an important role in ensuring the regulatory environment enables rather than hinders business efforts. Much can be learned by examining successful Indigenous businesses both in Australia and internationally. Businesses are the key driver for wealth creation, helping to provide job opportunities and improve social and economic conditions. Fostering business success, therefore, has the potential to increase employment, improve living standards, and contribute to stable and nurturing communities. Current government policy frameworks, such as the Indigenous Economic Development Strategy, are largely focused on increasing education and training and generating opportunities for private sector employment and enterprise.  This is important. Just as important is the contribution that successful community or non-profit enterprises can make in providing employment, generating business investment for growth, building partnerships and demonstrating positive role models. The Empowered Communities group is such a national initiative. Formed in 2013, the group brings together Indigenous leaders from eight communities across Australia and seeks to strengthen Indigenous individuals and communities through a range of activities (see https://empoweredcomms.wordpress.com for more information). Strategies that strengthen both individual and community business initiatives will help to ensure that more Indigenous Australians have the opportunity to live successful and productive lives.  Everyone has a contribution to make in this regard. Governments can create an enabling regulatory environment. Banks can enable access to capital. Local chambers of commerce can foster business development through support and networks for new entrepreneurs. Communities and individuals can purchase goods and services from Indigenous businesses. Building a strong and vibrant Indigenous business and social enterprise sector can then contribute to improving many of the health and social indicators, such as improving nutrition and healthy lifestyle choices, and increasing employment and education.  Efforts to improve Indigenous outcomes really are everyone’s business

Direct costs of COVID-19 inpatient admissions at a University Tertiary Care Centre

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