The Reality of Simulation-Based Acquisition — And an Example of U.S. Military Implementation

Acquisition Review Quarterly, Spring-Summer, 2001 by Randy C. Zittel

Information technology is creating more realistic, more capable, and more diversified simulation tools. These tools have been applied to a range of ongoing product development programs with an increasing diversity of applications. Phenomenal reductions in development time, life-cycle costs, and improved system quality are reported from these new opportunities.

In contrast to simply networking more and more computers and software together in ever-increasing capability, entirely new approaches are emerging. One overarching approach within the Department of Defense (DoD) is simulation-based acquisition (SBA). It is the proactive use of simulation and information technologies to rapidly advance all elements of the product development process. It is capturing more elements of industry every day and has the potential to revolutionize product development all over again.

Here we will examine one powerful example of simulation-based acquisition implementation in the American and British Joint Strike Fighter Aircraft Program.

Natural market forces are driving all industries to find better ways to couple information technology and thus improve business processes. Simulation technology is a large part of this revolution. The concept of SBA was begun in DoD in 1996 as an initiative to capitalize on the increasing integration of information and simulation technology throughout business and product development. In conjunction with major participation from industry, DoD has defined SBA as "an acquisition process in which DoD and industry are enabled by robust, collaborative use of simulation technology that is integrated across acquisition phases and programs" (Modeling & Simulation Acquisition Council [MSAC], 2000).

Literally hundreds of enterprises have documented improved performance: shortened development schedules, reduced cost, and improved system quality (Zittel, 1999; Sanders, 1997). Reported improvements include a 3000 percent reduction in unique processes and a 50 percent reduction in overall development time. Such significant improvements have naturally stimulated the increased use of information and simulation technology to further reduce development and market costs.

Development programs in the U.S. military are increasingly implementing the concepts of SBA, but to different degrees, depending on how far along they are in their development, when they started, and how aggressively they are approaching the concept. Many have been trailblazers -- leading the greater use of information and simulation technology in new areas. This is one of the difficulties: to implement such technologies when they are mature enough to be helpful, but not so mature as to be obsolete and unsupportable. With information technology, there is very little gap between these two extremes. Older programs are frequently constrained by the need for considerable investment in existing (legacy) processes and supporting tools, and it becomes an issue of how much to change and when. The younger programs can better implement newer technology at lower cost and benefit immediately, with less updating of legacy systems. This applies to all elements of information technology, but its use can be expensive. If no t planned properly, it can be far more expensive and time consuming than the more manual process, since the complexity of advanced simulations usually makes them a development project in themselves. As they integrate, are interconnected, or use increases, the investment and applications become more extensive and obviously more complicated. The requirement to treat them as projects supporting the primary development becomes more vast and must be planned and managed even more carefully.

WHAT Is SBA?

Table 1 shows the principles of SBA summarized from the recent policy statement released by the DoD MSAC, the executive simulation policy-planning group for the four military services (MSAC, 2000).

The SBA vision is to increase opportunities for the Services to benefit from integrated simulation technology. The principles are structured in relatively broad terms, with the application left to the specific opportunities of the project. With simulation technologies, the opportunities to improve dramatically the development (acquisition) process are a strong incentive. Second, specific opportunities of achieving earlier decisions across the systems engineering structure of design, manufacturing, support, and utilization (employment) are expected. Third, the ability to improve system performance with better balance of total life-cycle or ownership costs has been demonstrated, but the need to establish digital standards across the simulations is fundamental.

Fourth, simulation technology can now achieve concurrent multiple system evaluations throughout the intended utilization range or mission area. Developing such tools while achieving more diverse and extensive decisions requires better collaboration of the massive and many types of information, and this is achieved through reusability of simulations with greater interoperability and capability. Finally, these technologies have achieved such great advances in computing power that we can now make these better-informed decisions more quickly -- that is, in near real time. This sharing of simulation benefits from a foundation of product design information is called a distributed product description. It is well known how capable computer-aided design and manufacturing tools (CAD/CAM) have become (Zittel, 1999). These tools must now be based on a common technical architecture using open data interchange standards. The more they rely on the commercial standards, the more they will be able to use the broader range of tools developed in response to the massive market forces of the digital age. With reduced budgets but increased system complexity, the military can no longer afford their own unique one-of-a-kind tools, so commercial technology is the only option.