A proposed approach to assess supply chain risks to meet the new challenges in the Defense industry

Abstract

Department of Defense (DoD) had doubled its planned investments in new weapon systems from about $700 billion in 2001 to nearly $1.4 trillion in 2006. Despite the technical superiority of its weapon systems, DoD's weapon systems acquisition process had been plagued with cost increases, schedule delays, and performance shortfalls'. To address the maturity gaps, DoD mandated in 2008 that all prime contractors (including Raytheon) for new US government funded defense programs to evaluate/document technology and manufacturing readiness levels (T/MRL) of their supply base. There are 10 manufacturing & 9 technology readiness levels and specific levels need to be met for certain program milestones. DoD has released a set of questionnaires (Deskbooks), designed to evaluate the maturity levels of a supplier in areas such as engineering design, operation, manufacturing, and facility etc. The goal of this thesis is to develop an assessment method, using the Deskbooks as a reference, to address the core issues in the defense acquisition process. The thesis will also take a deep dive into Raytheon's supply chain management philosophy and analyze how Raytheon's strategic sourcing initiatives align with the new challenges in the defense industry.