Virginia-Class Submarine: Two for Four in 2012 (B)

10 Pages Posted: 5 Apr 2010  

Tom Cross

University of Virginia - Darden School of Business

Abstract

The VIRGINIA-class submarine was one of the largest naval-acquisition projects in history, involving the construction of 30 submarines at an acquisition cost of $93 billion. By FY05, the VIRGINIA-class program was in its 10th year. Construction had begun on seven submarines. Unit costs were running 41% over the base-line budget, and production goals were not being met. Ship construction budget limits necessitated a 20% unit-cost reduction, an unprecedented task on a ship already in serial production. How would the program office achieve that goal and prevent the program from being truncated, the fate of its predecessor the SEAWOLF-class?

Keywords: operations, strategy

Suggested Citation

Cross, Tom, Virginia-Class Submarine: Two for Four in 2012 (B). Darden Case No. UVA-OM-1385. Available at SSRN: https://ssrn.com/abstract=1584174

Tom Cross (Contact Author)

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Paper statistics

Downloads
31
Abstract Views
303