Realizing DoD cost reduction efficiency from 'should-cost' reviews
With Department of Defense (DoD) mandates to drive affordability, 'should-cost' reviews (SCRs) are generating significant interest. Our view is that the mandates are not a blanket indictment that programs are ignoring costs, but that large programs are being challenged to implement increased efficiency and innovation.
'Should-costing' can provide many benefits:
- Deeper knowledge for government Program Managers and decision makers about cost efficiency and design
- Visibility into the full supply chain efficiency for all systems and material
- Details on where over-specification is occurring in systems and equipment
- Understanding of where previous designs can be reused on new/future programs
- Cost drivers for all types of equipment and services used in programs
- Understanding of process improvements across the supply chain to achieve cost reduction—in our experience: 5-15% total system cost reduction and up to 40% on some subsystems
 Should-Cost Review: A Pragmatic Approach to Affordability
A should-cost review can improve affordability—reducing total program costs without cutting back on program scope or capabilities, or eroding suppliers’ profits.
 How to Run a Should-Cost Review
24 October 2011 — DefenseNews
The U.S. Defense Department is experiencing unprecedented cost pressures as demands to reduce government spending rise, and should-cost review is becoming the tool of choice to improve affordability.
By Bob Willen and Randy Garber
 Affordability as a Requirement
Aviation Week
As the Department of Defense initiates new programs, program managers will be required to treat affordability as a requirement.
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 Bob WIllen, Partner and Aerospace & Defense Practice Lead
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 Randy Garber, Partner
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