NAV0039

 

 

Written evidence submitted by BAE Systems

This document is in response to a request from the Defence Select Committee to provide additional detail on the Type 45 Power Improvement Programme progress; and on the Type 26 Risk Register and any measures BAE Systems is taking beyond ordinary practice to mitigate them.

 

Type 45 Power Improvement Programme (PIP)

 

HMS Dauntless, the first of class to be fitted with the T45 Power Improvement Programme (PIP), is expected to complete the initial phase of acceptance of the installation work in Birkenhead by the end of summer 2021. This is broadly aligned to plans agreed following reassessment to account for the impact of the COVID-19 pandemic which continues to affect project progress. The next phase of the testing programme will see her undertake a rigorous trials programme in harbour and subsequently at sea.

We regret that we are unable to provide a detailed schedule of when subsequent ships will complete the PIP upgrade. These details form part of the terms and conditions of our contract with the Ministry of Defence and are thus commercially confidential. We can confirm that all six Type 45 ships will have undergone the PIP upgrade by the mid-2020s. We must however stress that the programme is dependent on the availability of ships to undertake the upgrade, balanced against the Royal Navy's standing and future operational commitments.

 

Type 26 Risk Register and mitigation

 

Overview

 

 

 

 

 

 

 

Programme Risks

A number of key risks were identified at the outset of the programme, and are consistent with the challenges typically experienced when embarking on the design and construction of a complex warship. These risks are well understood and we have the skills and experience to understand how to best mitigate these risks. We have well-established, monitored and measured mitigations in place and we work closely with our customer to implement these mitigations to protect the critical path of the programme.

The following list represented risk that could have a potential impact on the Batch programme as a whole:

  1. Resourcing

There is a risk that the business cannot acquire the highly skilled trades and crafts people and suitably qualified and experience persons (SQEP) to fulfil critical roles, resulting from increased competition for trades across industry and adjacent sectors.

 

The impact may include delay to schedule, increased costs and lower quality of work as a result of the potential requirement to outsource work to lesser SQEP

 

We are managing this risk through a number of interventions which include:

 

  1. Engineering Maturity and Change

There is a risk that the required maturity of the engineering design is not achieved within the scheduled timeframe, and to a lower quality as a result of in increased change during manufacture, driven by immature supplier data and preliminary design decisions.

 

The impact may include increased spend and schedule delay due in order to rework and increase resource to process and implement the change.

 

We are managing this risk through a number of interventions which include:

 

  1. Supply Chain Failure to perform

There is a risk that our supply chain will not meet its contractual commitments and may require post-contract change.

 

The impact may include increased material cost, incorrect technical data supplied, and late arrival of equipment to the yard, affecting installation, testing and commission dates.

 

We are managing this risk through a number of interventions which include:

 

  1. Operational Performance
    1. Schedule Integration (Sequencing) & Control

There is a risk that our planning is not robust enough resulting in incorrect sequencing of work or unscoped work being required.

 

The impact of this may include increased demand on the resourcing profile, increased spend and sub-optimal sequencing of work

We are managing this risk through a number of interventions which include:

 

    1. Work Execution to norm

There is a risk that we do not achieve ship-build norms for design and manufacture of the ship

 

The impact of this may be an ineffective and non-competitive operation, resulting in unnecessary spend and schedule increases.

We are managing this risk through a number of interventions which include:

 

Technical Risks

These risks arise from the novelty of complexity of the product e.g.:

  1. System Integration

There is a risk that the integration between systems is not achieved successfully and/or according to the plan: e.g. the Power and Propulsion (P&P) System, the Platform Management System (PMS) and Combat Systems

 

The impact of poor system integration may result in further design change, reduced or inadequate system performance and failure to meet contractual requirements.

We are managing this risk through a number of interventions which include:

 

 

  1. Shaft Line

There is a risk that during the installation of the shaft, issues may occur with alignment of the equipment.

 

The impact of shaft line misalignment would cause schedule delay, cost increase to rectify the issue, and if not resolved, could potentially impact performance requirements

              We are managing this risk through a number of interventions which include:

 

  1. Performance

There is a risk that the performance characteristics will not be achieved.

 

The impact of not achieving our contractual levels of performance could prevent the ship from meeting all its strategic operational requirements.

We are managing this risk through a number of interventions which include:

 

 

  1. Software

There is a risk that additional software development and obsolescence will occur.

 

The impact of this risk occurring is an increase in cost, late release of software and capability to the ship, causing delay to setting to work and commission and the potential failure to meet the security and performance requirements.

We are managing this risk through a number of interventions which include:

 

26 August 2021

 

 

 

 

 

 

 

 

 

 

 

Defence Committee Visit to Barrow, 8 July 2021: Key Learning Points