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7 Organizational Structures and Related Issues
Pages 59-64

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From page 59...
... guidelines and procedures and the role of the program manager in the acquisition process. ENFORCEMENT OF DOD DIRECTIVES AND PROCEDURES Conclusion 10: Many of the critical problems in the U.S.
From page 60...
... • Emphasis should be on an event-based strategy, rather than a schedule-based strategy, with meaningful and realistic pass/fail criteria for each stage of development. In particular, systems should not be allowed to proceed to operational testing unless that step is supported by developmental test performance that strongly antici pates that the system will pass; such a determination can be greatly aided through the conduct of a rigorous operational test readiness review.
From page 61...
... Input from all divisions -- including sales, marketing, dealers, and manufacturing plants is actively solicited -- but the final decisions are made by the program manager. Other industries, besides automotive, also use a similar concept of having a single person in charge of the entire product realization process.
From page 62...
... This approach is in stark contrast with industry, which has more stability and the right incentive structure, which includes being aggressive about finding system defects as early in system development as possible.2 The panel recognizes the challenges associated with program management and does not expect any significant changes to the present system of short-term rotations of military officers as program managers. Nevertheless, we believe that DOD should explore ways to provide more stability, and thereby accountability, to the project management process.
From page 63...
... Also, guidelines would have to be developed on how problems from earlier stages of development -- for example, that a sys tem's performance was not comprehensively tested or discovered flaws were left unaddressed -- would affect the assessment of subsequent program managers. Recommendation 5: The Under Secretary of Defense for Acquisi tion, Technology, and Logistics should provide for an independent evaluation of the progress of acquisition category I (ACAT I)


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