A Case Study of Attack Reconnaissance Helicopter Development Histories

This paper is a case study in the development of Attack Reconnaissance Helicopters (ARH). It examines how Operations Analysis contributes to the front-end of the business (FEOB) by developing market assessments, and examining cost and schedule of previous and existing ARH programs in making build-buy business decisions. In particular, this paper examined the decision process related to the design, development, and production of an ARH indigenously versus the purchase of an existing ARH product. The ARH market was reviewed in terms of the potential helicopter market and customer base. It reviewed ARH developed by companies with a history of building military helicopters to include both new-build and remanufacture/derivative programs. While the helicopter market looks prosperous over the next 10 years, it was found that it primarily benefits those Original Equipment Manufacturers (OEM) who have established programs. Based on past ARH program histories, the average time to first flight was seven years, the average time to first delivery 18 years, and the average program development costs were $856M USD. Given the sparse market for ARH found by this study, and the extensive amount of time and money required to develop a new ARH, the best approach for a country seeking an ARH would be to buy one from an established OEM.