Transforming defense manufacturing through platform strategy

The defense sector faces an unprecedented convergence of challenges amplified by Covid-19 and the war in Ukraine

Talent shortages and supply chain constraints have been compounded by demands to rapidly increase production and deliver higher volumes of lower-cost systems faster. These pressures have been further amplified by the need to accelerate innovation cycles and integrate increasingly relevant advances in commercially available technologies to better adapt to new battlefield requirements.  

Defense production lines across domains – from space to undersea – are beginning to focus on affordable mass and commercial approaches resembling those of the automotive sector

Our Client, a manufacturer of advanced missiles and munitions subsystems, recognized the challenge early. The focus was on understanding how to 1) consolidate, optimize, and leverage the supply chain and in doing so improve resiliency; 2) reduce duplication and streamline technology development across programs; and 3) streamline, improve, and increase production in a cost-effective way. 

Diagnosing portfolio inefficiencies across the enterprise

Renaissance conducted a comprehensive assessment of the Client Company's portfolio to understand existing bottlenecks and the extent of the potential that could be unlocked by implementing model-based systems engineering and a family-of-systems approach. Across dozens of program lines and more than 5,000 known suppliers, Renaissance identified multiple critical inefficiencies. The analysis revealed instances of duplication where subsystems or components were separately developed. The same suppliers were contracted in isolation, limiting opportunities for price leverage via volume or advanced orders. Development dollars and capital expenditures were not optimized given pre-established programmatic stovepipes. 

The Client built conviction to invest in modular and model-based systems via a comprehensive approach including research and case studies, curated executive field trips and workshops with automotive, heavy manufacturing, and advanced technology suppliers that are world leaders in platforming strategies. Renaissance's proprietary framework helped develop a Platforming Strategic Implementation Plan (PSIP) for the business. 

Delivering measurable transformation

The Company demonstrated reduced R&D cycles, increased production capacity, justified substantial investments in digital engineering, improved pricing across the value chain, and introduced multiple new products into the market faster. These results align with industry benchmarks and show that implementing a platform strategy can reduce development costs by 20-50% and time by 15-30%, as well as production costs and time by 20-30% and 30-50%, respectively.  

Purchasing costs across the supply chain were reduced substantially as well. Critically, given today's requirements for higher volumes of more modular systems, companies that invest in platforming and modularity can increase output by more than 15% and expand system variety by 25%-50%.