TIPPING POINT FOR DISCARD:DEFENCE EQUIPMENT

By: Ashok Kumar

TIPPING POINT FOR DISCARD: DEFENCE EQUIPMENTS It is no doubt that ‘man behind the machine’ matters but it is equally important to realise that the equipment being stated as machine in this ‘saying’ also matters and matters significantly. It is due to this reason that all the defence forces in the world pay special attention […]

TIPPING POINT FOR DISCARD: DEFENCE EQUIPMENTS

It is no doubt that ‘man behind the machine’ matters but it is equally important to realise that the equipment being stated as machine in this ‘saying’ also matters and matters significantly. It is due to this reason that all the defence forces in the world pay special attention to equip themselves. Since major equipments having longer life have huge investment costs, an effort is made to sustain these equipments as long as possible. Necessary wherewithal in terms of trained crew to operate, reduction in adversial weather impacts and dedicated MRO organisations play their critical role in ensuring that the equipment remains ‘mission reliable’ throughout the life of the equipment.

There are numerous reasons which contribute to a decision making to discard the defence equipment which may not be necessarily the unserviceability of the equipment alone. While some broad norms exist for such a decision as of now, it is felt that a more systematic approach is needed for such an important decision making to identify the ‘tipping point’ wherein an equipment should no longer is required to be continued. A round table conference was organised by MRO digest forum on 09 Sept 22 in India which deliberated on this issue. Some major inputs which emerged during the discussion are as under:

• Operational Imperatives: Operational considerations continue to be most important considerations and rightly so. It is beside the point that a careful threat analysis resulting in suitable equipping is the best way forward as only then the entire life cycle of the equipment can be better managed. There are, however, multiple situations wherein such ideal conditions don’t exist and certain equipments are inducted in post haste without adequate training on the MRO support in the initial stages. Not only this, there may be war/war like conditions wherein a particular serviceable equipment may not meet the operational need and has to be discarded either altogether or from its primary role. Whatever be the situation, operational need takes precedence and the equipment has to be discarded either altogether or form its primary role if not mission suitable. Whatever be the situation, operational pre-dominance has to be accepted as Terms of Reference though a well planned equipment strategy can reduce the impact of operational turbulence to a large extent.
• Cost of Maintenance: One of the important considerations to decide on the tipping point for discard could be relatively higher cost of maintenance specially when it exceeds the cost of replacement of the equipment. It can be adopted more efficiently when the replacement is readily available. There may be some situations wherein higher cost of maintenance has to be accepted if the replacement equipment is not available reasons not withstanding and operational considerations demand its continuance. 
• Levellised Cost of Operational Sustenance: Levellised   cost of energy is a pragmatic term being used in wind energy and other energy segments wherein a more objective analysis is undertaken towards the viability of a particular equipment. Even if the increased maintenance cost sustains a production level to continue to provide the economical edge as compared to the investment in the new equipment, the equipment is good enough to be continued. The tipping point is reached for discard/ replacement when the  new replacement equipment results in better economical output and takes it beyond the levellised cost of energy. There is a need to adopt a similar approach for the defence equipment  as well. Of course, the term levellised cost of energy has to be replaced with levellised cost of operational sustenance. The moment any  equipment scales low on operational need and related sustenance, it is indicative of having reached its tipping point.
• Equipment Profile of the Adversary: There may be certain equipments with the adversary which are not effectively neutralised by a particular equipment despite being meant for the purpose. Such operational considerations may also result in either the discard of the equipment altogether or being moved to alternative tasks.
• Technology Infusion: Technological advancements are making huge strides. Besides having challenges to keep pace with them in our daily lives, defence equipments have to also face these challenges. No of equipments lose their relative importance due to newer technology driven equipments viz advent of drones/swarm drones have opened new vistas of war fighting making some of the equipments redundant. In such situations, even if the unusable equipment has some useful life, tipping point for discard can be accepted earlier as compared to other situations. Technological obsolescence may be another added factor for reaching the tipping point early.
• Upgradability: Whenever an equipment is introduced, manufacturers must plan a design having sustainability to absorb the likely upgrades foreseeable in an equipments life. Such a capacity along with necessary expertise can prolong the life of the defence equipment and delay the tipping point for discard considerably. However, there is a stage when the existing equipment cannot be upgraded to meet the operational necessity or such an upgrade is cost prohibitive; in such situations tipping point for discard may be reached early.
• Indigenous Capability for Manufacturing: If a defence equipment is being indigenously produced, it will be easy to replace and therefore an early tipping point can be accepted. In case the equipment is an ex-import item  and not being produced in the country, a delayed tipping point has to be accepted. It will also depend on whether the replacement is required by a similar equipment or high end equipment in the same category.
• Indigenous MRO Capability: Invariably, OEMs from other countries remain linked for MRO support avoiding technology transfer and continued economical interest. In case of robust indigenous MRO capability, the tipping point for discard can be reasonably delayed as mission sustainability can be assured.
• Equipment Obsolescence:This could also be one of the reasons in the decision making for deciding the tipping point for the discard. Delayed obsolescence is advantageous provided mission reliability is assured.
• Risk Enhancement: A particular equipment may still be performing within the laid down parameters but in case of frequent failures where nature of the failures relate to danger to the life of the operating crew or anyone else in the vicinity, the tipping point for discard needs to be advanced.
• Ammunition Availability: Even when the Ordinance is serviceable but the ammunition supply has totally dried, discard tipping point needs to be advanced.

And there are many more such reasons which contribute either towards the early arrival of the discard tipping point or delaying the same. The identification of suitable tipping point is of paramount importance both for operational as well as economic reasons. It will vary from equipment to equipment besides operating environment of each equipment. Equipment cost will also be a very important factor as those in lower cost bracket will be easily replaceable from budget perspective but it may not be the same for costly equipment. Even if high MRO cost has to be borne, it has to be opted for due to non affordability of higher costs. It is like paying EMI to buy a product as against paying upfront in totality even if it involves paying the interest cost as additional financial burden.

India as a rising country has to look at its defence equipment management most holistically as only then it will be able to withstand the collusive threat from China and Pakistan . It can only then ensure the least and economical cost to the defence equipment and in the process, it will also be able to focus on its developmental needs as a Nation.