Make or Buy: An Analysis of the Impacts of 3D Printing Operations, 3D Laser Scanning Technology, and Collaborative Product Life-Cycle Management on Ship Maintenance and Modernization Cost Savings

Abstract

A team from the Naval Postgraduate School conducted a trade-off analysis of in-sourcing (i.e., make) versus outsourcing (i.e., buy) the production of legacy parts for ship maintenance and modernization with a focus on cost savings given the need for cost-effective sustainment. The purpose of the study was to compare the make/buy trade-off for a comparison of implementing 3DLST, 3DP, and CPLM for U.S. Navy fleet maintenance and upgrading. Cost estimates for in-sourcing and outsourcing were developed as well as the impact of insourcing part production cycle time reduction on fleet readiness assessed. The results have several significant implications for fleet maintenance and modernization practice. The results indicated that there would be significant potential savings with in-sourcing, suggesting that the combination of the three technologies have created a potential shift in the optimal acquisition modes for fleet parts.