The holy grail in defense has always been to reach production maturity, since that’s when programs generate maximum cash flow and profit. The irony is that programs in this phase often perform below full potential and maintain technical support levels that are higher than necessary.

Most companies tend to overlook the efficiency of mature programs precisely because they are delivering high volumes, high revenue, and high margins.

Leading companies reassess the level of engineering support staff needed for mature programs and redeploy those resources to other critical areas. That approach produces multiple benefits and a substantial return on investment (ROI). Profitable programs generate even higher margins—often a gain of 100–200 basis points. These companies also achieve a 10%–15% reduction in engineering hours on mature programs (see Figure 1). That enables management to shift scarce technical talent to development programs and proposals that are critical to future growth. Finally, improving engineering efficiency reduces unit costs, decreasing the risk that government agencies will reduce funding or even cancel programs.