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UK Ministry of Defence: Enabling the UK MOD to work more effectively with industry partners, saving £350 million in just two years

To maintain the UK’s fleet of 11 submarines while building the seven Astute-class boats – each of which costs around £1 billion and is "more complex than a space shuttle" to build – the UK Ministry of Defence (MOD) works in partnership with BAE Systems, Babcock Marine & Technology and Rolls-Royce. In a politically sensitive environment, the MOD needed to cut costs and improve the performance of this hugely complex programme.

Our team of industry experts and programme management specialists worked closely with the MOD’s three partners to create a clear picture of dependencies across the programme. We identified key strategic risks, enabling the MOD to work more effectively with industry and pursue mitigation strategies. We established a cost baseline against which estimates could be tested, and we implemented a process to identify and deliver benefits across the enterprise, providing clear targets. Our work improved coordination and enabled informed, fact-based discussion at the highest level. Two years in, the programme has delivered savings of approximately £350 million and is on target to save £1 billion over 10 years – helping ensure the long-term sustainability of the UK’s nuclear submarine capability.

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PAnorama Submarine Government
UK Ministry of Defence

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