Short term acquisition cost savings can often be taken without appropriate consideration of the potential future longer term equipment support impact.
Traditionally, spares to support contingent operations are scaled to meet ‘just in case’ requirements, whereas equipment support investment decisions are predicted on a ‘just in time’ philosophy to support peacetime operations (Force Elements at Readiness, e.g. training). Experience shows that spend in the support phase is inherently uncertain. Correspondingly, investment based on ‘spend to save’ attracts reduced confidence in the long-term savings being realised. This is magnified if equipment is operated outside of the specified operational performance envelope (e.g. helicopters flying hot and high, warships operating at sustained high speed in high sea temperatures/states, etc).
To increase understanding and confidence of the impact of decision making on future support costs, Arke has:
- Provided asset management and tracking systems to ensure a robust understanding of the current, and future, requirement is supported
- Analysed the costs and benefits of delivering operational spares support through the adoption of deployed manufacturing capability
- Developed a methodology to track, time and characterise support risks to inform technology and contracting decision making
- Used End to End supply chain modelling to ensure any decisions consider the full scope of support, not just the stove-piped content of a given contract
- Analysed data such as maintenance records and Health and Usage Monitoring Systems (HUMS) to determine root causes for maintenance and consequential support cost issues.