Monthly Archives: September 2019

Tips for Modeling “Build to Print” and “Build to Spec” in TruePlanning®

During a recent implementation workshop of PRICE Cost Analytics™ at a major aircraft manufacturer, we were building TruePlanning® templates representing each product line for use in future estimating activities. One of the questions posed during the workshop was, “How can someone model ‘Build to Print’ (BTP) and ‘Build to Spec’ (BTS) in TruePlanning®?”.

Luckily, we have an answer; using the newly added “Contract Service Options” input and “Contractor” resource in TruePlanning® 2016 SR1, we developed a comprehensive methodology for modeling BTP and BTS.

 

Let’s look at BTP first. BTP is the manufacturing of components by a subcontractor to the exact specifications of the Prime. Typically, BTP represents specific designs that were successful in past programs.   In this case, we want to assume that the Prime does all the Development Engineering but outsources all of the Manufacturing and most of the Tooling and Test.

How do we accomplish this in TruePlanning®?

Using the Hardware Cost Object, line 50 is “Contract Service Options”. Selecting “Contractors Involved” display a series of inputs pertaining to the outsourcing Engineering, Manufacturing and Tool / Test for both Development and Production.  In the BTP scenario we want to make the following assumptions:

BTP Scenario – Contactor Service Options / Contractors Involved.

Activity Setting
“Development Engineering” Outsourced Set to 0% – Prime does all Engineering
“Development Manufacturing” Outsourced Set to 100%, Contractor does all Manufacturing
“Development Tooling and Test” Outsourced Set to 90%, Contractor does majority of Tool/Test
“Production Engineering” Outsourced Set to 0% – Prime does all Engineering
“Production Manufacturing” Outsourced Set to 100%, Contractor does all Manufacturing
“Production Tooling and Test” Outsourced Set to 90%, Contractor does majority of Tool/Test

 

Now let’s take a look at the BTS scenario. BTS is the manufacturing of components by a subcontractor to a certain size and operational parameters specified. This allows the subcontractor to use their expertise to develop the design and manufacturing process of the component. This strategy is typically used when the Prime does not have the core competency in the component manufacturer or wants to reduce overhead costs.  However, typically the Prime may be involved in both the Development and Production Engineering activity. Again, using the “Contract Service Options” we can model BTS as follows:

BTS Scenario – Contractor Service Options / Contractors Involved.

Activity Setting
“Development Engineering” Outsourced Set between 50% to 100% – Prime does some of (or none) of the Engineering
“Development Manufacturing” Outsourced Set to 100%, Contractor does all Manufacturing
“Development Tooling and Test” Outsourced Set to 90%, Contractor does majority of Tool/Test
“Production Engineering” Outsourced Set between 50% to 100% – Prime does some of (or none) of  the Engineering
“Production Manufacturing” Outsourced Set to 100%, Contractor does all Manufacturing
“Production Tooling and Test” Outsourced Set to 90%, Contractor does majority of Tool/Test

 

In addition to the above setting, you may also want to set up a custom Worksheet Set for Contractor Services to reflect G&A, Fee etc.

When looking at TruePlanning output results, you will now see the effect of the Contractor Service Option selections at the Activity / Resource level. For example, in setting 100% “Production Manufacturing outsourced”, you will see under the Production Manufacturing the Prime’s resources for Test Engineering / Fabricator/Assembler/Support Engineering/Material are “0” and the total effort is now reflected under the “Contractor” resource.

Need help in organizing your information or walking through a similar situation, email or call our Customer Service team (help@pricesystems.com, T: +1- 800-437-7423)  to discuss how we can support your cost estimation program and needs.