NASA Productivity

Abstract Studying the productivity of any government organization is difficult. Agencies have multiple mission objectives and budget and accounting systems that are very different from those of proft-making firms, and, particularly for a research and development (R&D) agency such as the National Aeronautical Space Administration (NASA), obtaining the greatest quantity using the least resources is not always the best way of producing cutting-edge technology. In short, a government agency is not a private-sector company with the principal objective of making a profit for investors. NASA is a complex R&D organization, producing or managing the production of many different space components. For this study, only the subset of NASA programs that involve the manufacturing of satellites is used for measuring productivity because 1) there is a rich historical data base of cost estimates for NASA satellite manufacturing, 2) similar estimates exist for other government agencies that build satellites (the Air Force and other defense agencies), and 3) the commercial sector produces many private (particularly communications) satellites. Our study has three components. The first is a direct evaluation of NASA's efficiency over time in manufacturing both communications and scientific satellites. Since NASA management of this production includes both in-house and contractor efforts, a more direct comparison is possible between commercial efforts for NASA and the commercial production of private use satellites. The second component of the study compares NASA production programs with those of other agencies and even with similar manufacturing programs at the European Space Agency (ESA). The third approach to this analysis convened a workshop that had representatives from various government agencies, major commercial manufacturers, and academics and consultants who have first-hand knowledge of the satellite manufacturing process and of managing relevant government and commercial procurement projects. The results of the workshop provided an excellent check on the results of our analysis of government operations and comparative inputs from the commercial satellite manufacturing sector. The results of these three separate approaches were remarkably similar. NASA, on average, seems no better or worse in efficiency than other government agencies, including foreign manufacturing programs such as those of ESA. Government R&D agencies, however, often cannot match the efficiency and productivity of commercial satellite manufacturers. Their products are sufficiently different from those of NASA and need to be compared only very selectively in terms of productivity. Interestingly, it was also found that NASA could improve its efficiency in a variety of ways. And, contrary to popular literature, not all of the reasons for NASA (and other government agencies) inefficiencies result from Congressional mandates such as the lack of multi-year funding commitments for long-term projects. It is within the power of the NASA Administrator to implement important changes that can help to save money and improve the Agency's productivity without jeopardizing the R&D components and the quality of research satellites.