Product-oriented design and Construction Cost Model. Discussion

Navy ship cost estimators traditionally estimate the cost of ships using system-based, weight-driven cost models. This approach has proven adequate in estimating the cost of ships with similar designs built using the same processes. However, this approach is not sensitive to changes in production processes, facilities, and advanced manufacturing techniques. In an effort to work more closely with industry to link ship design, manufacturing, schedule and costs, Naval Sea Systems Command sponsored the Product-Oriented Design and Construction (PODAC) Cost Model Project. This paper discusses the efforts and results of the PODAC project to date. The aim of the cost model is to improve techniques for analyzing issues of ship cost reduction, advanced construction techniques, modular construction, new technology benefits, industry consortium and teaming arrangements. The model will enhance the Navy's and industry's ability to provide accurate, timely and meaningful cost feedback from cost analysts to ship designers and from production to design. By better relating to the actual construction process, such as interim products and stages of ship construction, the state of the art can be advanced by providing essential knowledge for effective decision making and program management. This should ensure cost effective choices and enhance the buying power of the Navy within its budget limitations. The PODAC cost model should be an invaluable tool to the shipbuilding industry as it works to improve its global competitiveness.