Accession Number : ADA256132


Title :   Evaluation of the Cost Effectiveness Analysis Model Being Developed for the Component Improvement Programs of the Air Force and the Navy


Descriptive Note : Master's thesis


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA


Personal Author(s) : Crowder, Gerald L


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a256132.pdf


Report Date : Jun 1992


Pagination or Media Count : 61


Abstract : This thesis examines the Cost Effectiveness Analysis (CEA) model used by the Air Force to assist with the decision making process of their Cost Improvement Program (CIP). The emphasis was on studying the model for its use in the Naval Component Improvement Program. With an example provided by General Electric, a sensitivity analysis was performed to determine the cost drivers of the model. For the example, the major cost drivers were found to be the Incorporation Style, Kit Hardware Cost, and the Spare Part Factor. Next a simple simulation was conducted to determine how random component failures affect the life cycle cost variability of the CEA model. The author concluded that additional simulation studies should be conducted for other causes of variation. A detailed analysis of the model formulas and assumptions are needed as part of a users' manual.


Descriptors :   *DECISION MAKING , *COST EFFECTIVENESS , SIMULATION , THESES , CYCLES , LIFE CYCLE COSTS , KITS , SPARE PARTS , VARIATIONS , SENSITIVITY , MODELS , AIR FORCE


Subject Categories : Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE