Analysis

Can we afford our own future?

Aerospace & defense program management

Program management and execution in the aerospace and defense (A&D) industry have always been critical success factors, but the stakes are getting higher. To gain a deeper understanding of these issues, Deloitte conducted an extensive analysis of Major Defense Acquisition Programs (MDAPs), using cost and unit data published in the Department of Defense’s Selected Acquisition Reports.

Deloitte analysis

In March 2008, the Government Accountability Office issued a study of 95 weapons systems programs that showed an average schedule delay of 21 months and average budget overrun of 26 percent for 2007. The data shows that, over the past 15 years, the problem has steadily gotten worse. At the current pace, unless game-changing mitigations are implemented to address the root causes, the analysis forecasts that in 10 years the average cost overrun may exceed 46 percent.

Can we afford our own future?

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Can we afford our own future?

What is behind this troubling pattern of cost overruns and schedule delays – and what can be done to address it?

This study examines five root causes:

  • Program management challenges
  • Technical complexity
  • Talent shortage
  • Supply chain challenges
  • Politics

It also offers specific solutions and practices that can help tackle the problem caused by these root causes.

Meet the author

Dan Haynes

Dan Haynes

Sector Leader | Manufacturing

Dan Haynes, Principal, Deloitte Consulting LLP, is...More

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