Final Assembly & Checkout Alternatives for the Joint Strike

by Cook, Cynthia R.; Arena, Mark V.; Graser, John C.; Ausink, John A.

• ISBN13: 9780833032102
• ISBN10: 0833032100
• Format: Paperback
• Copyright: 2002-12-19
• Publisher: RAND Corporation

Table of Contents

Preface	iii
Figures	xi
Tables	xiii
Summary	xv
Acknowledgments	xxi
Abbreviations	xxiii
Introduction	1	(14)
History of the Joint Strike Fighter	1	(3)
JSF Competition	2	(2)
Origins of This Study	4	(1)
Final Assembly and Checkout of the Joint Strike Fighter	5	(5)
Purpose of the Study	10	(3)
FACO Strategies	10	(2)
Methodology	12	(1)
How This Report Is Organized	13	(2)
Splitting Production	15	(22)
Introduction	15	(1)
General Policy Issues Related to Splitting Defense Production	15	(4)
JSF	19	(2)
Arguments For and Against Splitting Production	21	(8)
Contractor Performance	21	(2)
Industrial Base	23	(2)
Avoidance of Risk	25	(1)
Capacity	25	(1)
Strategic Buffer	26	(1)
Share Economic Benefit	27	(2)
The U.S. Experience	29	(3)
Three Post-World War II Aircraft: F-86, F-100, and B-52	29	(2)
Coproduction of an Aircraft	31	(1)
The European Experience	32	(1)
Coproduction of Navy Systems by Multiple Contractors	33	(3)
Conclusion	36	(1)
Site Selection Issues: Plant and Major Facility Requirements for FACO	37	(12)
Specific Site Physical Requirements	38	(1)
Categories of FACO Options	38	(7)
Option 1: A ``Greenfield'' Site	39	(2)
Option 2: A Site with an Existing Airfield Only	41	(1)
Option 3: An Airfield with Existing Buildings Capable of Supporting JSF FACO	42	(1)
Option 4: A Site with a Current DoD Operation or Depot Activity with Excess Building Capacity	43	(1)
Option 5: Selecting a Site with a Current Military Aircraft Production Line That Has Sufficient Capacity to Accommodate JSF FACO Operations	44	(1)
Option and Sites Chosen for Analysis	45	(3)
Conclusion	48	(1)
JSF Workforce Issues	49	(12)
Workforce Issues	49	(1)
Labor	49	(1)
Labor Skills for the JSF	50	(3)
Task Distribution and Total Workforce Size for FACO	51	(1)
Standard Occupational Classification System	52	(1)
Cost of Labor	53	(1)
Other Costs Related to the Workforce	54	(4)
Training and Other Costs Related to Special Requirements	54	(1)
Workers' Compensation Costs	55	(1)
Special Costs Related to Different Locations	56	(1)
Costs Related to Mandated Benefits for Employees	56	(1)
Hiring and Training Incentive Programs	57	(1)
Availability of Workers	58	(1)
Summary	59	(2)
Indirect Costs	61	(6)
Background	61	(4)
Effect of Indirect Costs on JSF FACO Location	65	(2)
State and Local Tax Credits and Incentives	67	(16)
State and Local Economic Development	73	(1)
Effectiveness of Development Programs	73	(1)
State and Local Taxes in California, Georgia, and Texas	74	(3)
State Franchise and Corporate Income Taxes	75	(1)
Property Taxes	75	(1)
Sales and Use Taxes	76	(1)
Tax Credits and Deductions	77	(5)
State and Local Economic Development Programs	77	(1)
Texas	77	(1)
Georgia	78	(1)
California	79	(3)
Summary	82	(1)
Environmental Costs	83	(24)
Emissions Sources	84	(4)
Air Emissions	84	(2)
Noise	86	(1)
Other Environmental Issues	86	(2)
Environmental Compliance Costing Approach	88	(4)
Background	88	(1)
Environment Cost Estimating Overview	89	(3)
Compliance Costs for Air Emissions	92	(10)
Fort Worth	97	(1)
Marietta	97	(2)
Lockheed Martin--Palmdale	99	(2)
Northrop Grumman--Palmdale	101	(1)
Intangible Environmental Issues	102	(3)
Community Activism	102	(1)
Regulatory Atmosphere	103	(2)
Enforcement Aggressiveness	105	(1)
Summary	105	(2)
Other Cost Factors: Stealth, Suppliers, and Energy	107	(18)
JSF Stealth	107	(5)
An Overview of the JSF Stealth Requirements	107	(2)
JSF Airframe Stealth Approach During the Manufacturing Process	109	(2)
Costs of Stealth for JSF FACO	111	(1)
The Supplier and Technical Support Base, Suppliers, and Transportation Costs	112	(6)
Supplier and Technical Support Base	112	(3)
Supplier Representation on Site	115	(1)
Logistics and Transportation Costs	115	(2)
Summary of Supplier Issues	117	(1)
Energy	118	(7)
The Cost of Electricity	119	(3)
Reliability	122	(3)
Modeling the Cost Implications of Alternative FACO Strategies for JSF Production	125	(24)
Cost Elements in the Model	126	(19)
Production Labor	126	(6)
Indirect Costs	132	(3)
Investments: Facilities, Equipment, and Tooling	135	(2)
Taxes and Incentives	137	(4)
Environmental and Permitting Costs	141	(1)
Transportation	141	(2)
Power	143	(1)
Management and Supplier Support	144	(1)
Fee	144	(1)
Model Structure	145	(2)
Interaction Among Cost Elements	145	(1)
FACO Production Strategy Assumptions	146	(1)
Conclusion	147	(2)
Results	149	(16)
Introduction	149	(1)
Cost to Whom?	149	(3)
FACO Alternatives	152	(11)
Impact of FACO Activities on Site Workload	154	(1)
Base Case Versus Alternatives	155	(2)
Sensitivity Analysis	157	(6)
Conclusion	163	(2)
Conclusions	165	(28)
Cost	165	(1)
Other Policy Arguments	166	(1)
Summary	167	(2)
Appendix
A. Legislative Language: the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001	169	(2)
B. JSF FACO Site Assessment	171	(12)
C. Wage Comparisons	183	(2)
D. Environmental Regulatory Process	185	(8)
Bibliography	193