SD-19 Parts Management GuideIn todays acquisition environment-characterized by rapidly changing designs, increased risk for Department of Defense DoD weapon systems and equipment acquisition contracts due to an increase in the use of commercial part types, offshore manufacture of parts, and Diminishing Manufacturing Sources and Material Shortages DMSMS-the need for contractors to have an effective Parts Management Program PMP is greater than ever before.The PMP is an integral part of the acquisition process for design, development, modification, and support of weapon systems and equipment.

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Affordable System Operational Effectiveness

The Defense Acquisition Guidebook (DAG) establishes a framework for affordable system opera- tional effectiveness-that is, the effectiveness, from the warfighters' perspective, with which the system performs its missions over a sustained period.1 Figure 1 depicts the framework.

Figure 1. Framework for Ensuring Affordable System Operational Effectiveness

Functions

Capabilities

Reliability

Technical

Performance

Design

Effectiveness

Maintainability

Support Features

Product Support Package

Public-Private Support Infrastructure

Supportability

Production

Maintenance

Logistics

Operations

Process

Efficiency

Mission

Effectiveness

Affordable System Operational Effectiveness

Life-Cycle Cost/Affordability

Source: Defense Acquisition Guidebook, https://acc.dau.mil/CommunityBrowser.aspx?id=489752&lang=en-US, accessed November 14, 2013.

According to the DAG, affordable system operational effectiveness is achieved by designing for the optimal balance among design effectiveness, which encompasses technical performance and supportability; process efficiency, which enables effective product support; and life-cycle cost/total ownership cost. The following sections describe parts management contributions to these three areas.

Design Effectiveness and Parts Management

Figure 2 depicts the spending profile and the commitment of funds for a typical acquisition program. As the figure indicates, although expenditures are relatively small in the early phases of a program, decisions about the system requirements and the design approach to meeting

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