The Economic Benefits of Advanced Product Data
Abstract
The benefits of computer-aided design (CAD) are widely accepted for new designs. What, however, are the economic benefits of converting drawings to CAD models for military mechanical spare parts procurement and production? Based on our analysis, we estimate that repetitive conversions from raster to vector drawings following the first spares procurement cost the Defense Logistics Agency an extra $48 million over the last 10 years for consumable spare and replacement parts procurements. Had DoD taken delivery of CAD data from the original equipment manufacturer, an additional $35 million potentially could have been avoided. We conducted this analysis in order to assess the opportunity for future cost savings through the acquisition and distribution of CAD data. This analysis also serves as a benchmark to measure the offsetting cost of this opportunity, such as data management and possibly the development and implementation costs associated with neutral CAD formats. (These costs were not examined in this report.)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1999
- Accession Number
- ADA377031
Entities
People
- Eric L. Gentsch
- Michelle M. Kordell
Organizations
- LMI