International Telemetering Conference Proceedings / October 25-28, 1999 / Riviera Hotel and Convention Center, Las Vegas, Nevada / A program’s success is measured by the three parameters of cost, schedule and performance. This is true of any acquisition program, including instrumentation development and procurement. The primary purpose of Logistics is to influence and reduce the Total Ownership Costs (TOCs) to the Department of Defense while procuring a supportable system that meets the customer’s needs. The time to influence the TOCs is as early in the life-cycle of the program as can be done - where it is cheapest to affect a “fix.” This paper will briefly describe where Logistics influences ownership costs in the acquisition process. Examples of cost drivers identified in the Hardened Subminiature Telemetry Sensor System (HSTSS) program will be provided and the role of Integrated Product Team (IPT) members in influencing and reducing the TOCs will be discussed. This process is not just in the purview of the traditional logistician, but is also performed by each member of the program’s IPT. Each IPT member brings his unique knowledge and experiences to the teams pool of corporate knowledge. Examples will be provided of decisions made by the IPT that reduced TOCs.

The U.S. Navy has been confronted with budget cuts and constraints during recent years. This reduction in budget compels the U.S. Navy to limit the number of manpower and personnel to control costs. Reducing the total ownership cost (TOC) has become a major topic of interest for the Navy as plans are made for current and future fleets. According to the U.S. Government Accountability Office (GAO, 2003), manpower is the most influential component of determining the life cycle cost of a ship. The vast majority of the TOC is comprised of operating and support (O&S) costs which account for approximately 65 percent of the TOC. Manpower and personnel costs account for approximately 50 percent of O&S costs. This research focused on tradeoff analysis and cost estimation between manpower and new technology implementation. Utilizing concepts from System Dynamics Modeling (SDM), System Dynamics Causal Loop diagrams (CLD) were built to identify major factors when implementing new technology, and then stocks and flows diagrams were developed to estimate manpower cost associated with new technology implementation. The SDM base model reflected an 18 months period for technology implementation, and then compared different technology implementation for different scenarios. This model had been tested by the public data from Department of the Navy (DoN) Budget estimates. The objective of this research was to develop a SDM to estimate manpower cost and technology tradeoff analysis associated with different technology implementations. This research will assist Navy decision makers and program managers when objectively considering the impacts of iii technology selection on manpower and associated TOC, and will provide managers with a better understanding of hidden costs associated with new technology adoption. Recommendations were made for future study in manpower cost estimation of ship systems. In future studies, one particular type of data should be located to test the model for a specific manpower configuration.