Program Management and ExecutionWhy aerospace and defense programs are often late and overbudget – and what can be done to fix the problem |
Program management and execution in the Aerospace and Defense (A&D) industry is becoming a big concern, with high stakes for all. Commercial aircraft programs run late due to global supply chain or design problems. In addition, government aerospace procurements have overrun their budgets. A Government Accountability Office study of 95 programs found the U.S. Government was over budget by $295 billion and programs were an average of two years behind schedule. This phenomenon knows no country boundaries and affects commercial as well as military procurements. What is behind this disappointing record and what can be done about it?
Since 1989, program management activities such as planning, sourcing, assurance, staffing, finance and integration have played an increasing role in driving budget overruns. Programs often run into trouble when optimistic scenarios are used as baselines in order to win approval. In addition, technical, functional and financial risks may not be identified, integrated into schedules and managed effectively. These challenges create a vicious cycle of sub-par program performance that costs shareholders and taxpayers dearly.
Program management: How we can help
The challenge starts with understanding the root causes of program overruns and how to address them. Deloitte Consulting LLP (Deloitte Consulting) offers specific solutions and practices that we believe can help tackle these root causes. Key focus areas for improvement include: training, career development, program management resources and support, and awards for successful accomplishment of program objectives. Such improvements are essential for improving program management effectiveness.
What are Deloitte Consulting LLP's capabilities?
Deloitte Consulting is a leader in program management consulting, with access to resources worldwide. We possess extensive capabilities in strategy, processes and technology to help our clients in their efforts to develop creative solutions that address each of the root causes to cost overruns. We combine deep strategic and operational capabilities with experience in implementation-related consulting to help our clients develop value-based, executable strategies — strategies that provide the foundation for our clients to achieve results that matter.
Our focus includes:
- Lean operations
- Sourcing and procurement
- Supply chain strategy and planning
- Talent management
- Technology advisory and integration
- Performance improvement
The program management leadership team
Tom Captain, vice chairman, Global and U.S. Aerospace & Defense leader, Deloitte LLP
John Coykendall, principal, Deloitte Consulting LLP
Rod Mateer, director, Deloitte Financial Advisory Services LLP
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