Root Cause Analysis

Customer: Naval Sea Systems Command

Challenge: Department of Navy senior leadership found it necessary to conduct an analysis of reasons for unexpected and unexplained cost overruns in a major ship acquisition program.

Approach: WBB participated in the Root Cause Analysis of this major ship’s cost growth. The effort focused on three primary areas: Design Cost Growth, Production Cost Growth, and Material Cost Growth. WBB provided root cause analysis expertise to the ship program office and assisted in the development of a Causal Factor Tree for each identified area, and respective subcategories. WBB financial personnel prepared the written report which provided detailed explanations as to the unexpected cost overrun.

Value: WBB's effort assisted senior Navy leadership in describing cost overruns to Congress and allowed a refocusing of its acquisition approach for this ship, as well as identified "lessons learned" that improve other shipbuilding efforts.