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Management of Performance-based Logistics Contracts for Defence Procurement

Acquisition of weapon systems is a challenging task since it involves capturing of the operational performance of weapon systems over several decades at the acquisition stage with limited data obtained during user trials. It is difficult to measure the operational performance metrics of complex weapon systems even in the presence of sufficient data due to its mathematical complexity. The operational effectiveness of a weapon system depends on design factors such as reliability, maintainability, supportability, and the total cost of ownership. Developing mathematical models for predicting reliability, maintainability, and supportability of a system involves modeling time-to-failure (TTF), time-to-maintain (TTM) and time-to-support (TTS) random variables and estimation of corresponding parameters of these random variables for all line replaceable units (LRUs) of the system. Depending on the complexity of the weapon system, the number of LRUs in the system can be as high as several hundreds. The user has to model TTF, TTM, and TTS random variables of all the LRUs to accurately predict system reliability, maintainability, and supportability.

Project Team
U Dinesh Kumar
Sponsor
IIM Bangalore
Select Project Type
Ongoing Projects
Project Status
Ongoing (Initiated in 2011)
Funded Projects Functional Area
Decision Sciences

Management of Performance-based Logistics Contracts for Defence Procurement

Project Team: U Dinesh Kumar
Sponsor: IIM Bangalore
Project Status: Ongoing (Initiated in 2011)
Area: Decision Sciences
Abstract:

Acquisition of weapon systems is a challenging task since it involves capturing of the operational performance of weapon systems over several decades at the acquisition stage with limited data obtained during user trials. It is difficult to measure the operational performance metrics of complex weapon systems even in the presence of sufficient data due to its mathematical complexity. The operational effectiveness of a weapon system depends on design factors such as reliability, maintainability, supportability, and the total cost of ownership. Developing mathematical models for predicting reliability, maintainability, and supportability of a system involves modeling time-to-failure (TTF), time-to-maintain (TTM) and time-to-support (TTS) random variables and estimation of corresponding parameters of these random variables for all line replaceable units (LRUs) of the system. Depending on the complexity of the weapon system, the number of LRUs in the system can be as high as several hundreds. The user has to model TTF, TTM, and TTS random variables of all the LRUs to accurately predict system reliability, maintainability, and supportability.