Defence acquisition – building an adaptable and sustainable approach
20/05/2016

The TaxPayers’ Alliance report published earlier this week on defence acquisition reflects similar reports from the National Audit Office and Public Accounts Committee critical of Ministry of Defence cost overruns. Estimating the costs of large scale defence projects, such as the replacement for Trident, is extremely complex.
Major defence acquisition projects will often have 20 or 30 years between the initial concept and delivery. Over this timescale numerous factors and elements will change, some predictable and some unpredictable. One of the predictable factors that we know is that very few, if any, staff involved with the project originally will still be in post by the time of delivery.
It is therefore essential that today’s defence workforce have the best cost information to hand, alongside good contextual information through which to understand it, in order to compensate for the experience gaps such projects cause in the workforce, and the limited opportunity to apply inter-project learning that results.
Procurement and support of military equipment consumes around 40 per cent of annual defence cash expenditure. In 2013-2014 Defence Equipment and Support (DE&S) spent £13.9bn buying and supporting military equipment. These are large sums of money and even the slightest miscalculation or incorrect forecast can lead to large overspends, and to associated delays.
While the ordinary person might not quibble an estimate for some work that was out by 1% if it meant the cost to you was a few pounds, on a large defence project that 1% error can mean many millions of pounds.
At Cranfield Defence and Security we work alongside the Ministry of Defence and the defence industry to build an adaptable and sustainable approach to costing complex projects, using robust data, pioneering techniques and a high quality research team.
We are realising this in our current research through the creation of a database of historic defence costs, a set of project histories and other contextual information on defence projects. We are also developing an associated viewer tool and a rating and health check tool for use by practitioners. More about the work can be found here: https://www.researchsymposium.com/conf/app/researchsymposium/unsecured/file/107/Pryce_SYM-AM-16-065.pdf
You can follow Mike on Twitter https://twitter.com/MichaelJPryce
‘Achieving Critical Advantage for the UK Post SDSR’ an annual conference by RUSI and Cranfield University will be held 16 June 2016 at the Defence Academy of the United Kingdom, Shrivenham. The conference will provide participants with a better understanding of the issues facing British defence acquisition following the UK Strategic Defence and Security Review (SDSR) 2015. For further details visit http://www.cranfield.ac.uk/About/Events/listings/symposia/DAC
Image: Crown Copyright 2016
Categories & Tags:
Leave a comment on this post:
You might also like…
All about standards
What are standards? Standards are documents outlining in detail the rules, guidelines or characteristics for specific products or processes. Standards may be a legal requirement or voluntary. Standards cover many sectors from engineering and business ...
Want to improve your reading skills?
Are you starting to read through the mountains of journals, books or articles for your project or on your course reading list? Let’s start with a few myths about the reading process: You need to ...
Driving the future of automotive excellence with three new scholarships
Cranfield University has a long history within the top echelon of motorsport, car development and safety designs within the automotive industry, working in the era where we’ve seen significant safety improvements, engineering feats and ...
Academic writing and being critical
Academic writing is daunting. Capturing all your thoughts and analysis and putting them down onto paper in some sort of understandable fashion is a challenge. Did you know we have resources in our Cranfield Study ...
My Cranfield experience: How studying for the Strategic Marketing MSc landed me a job in my dream industry
For Shraddha Mahapatra, studying for a postgraduate master’s degree at Cranfield School of Management unlocked the path to a career working in her dream industry sector. Shraddha had gained an MBA in her native ...
Keen to develop your study skills?
Alongside the technical skills and academic knowledge that you will gain on your course, as a Cranfield student you have the opportunity to develop a range of other skills that can enhance your learning experience. ...
