Getting 'Real' Data for Life-Cycle Costing,
RAND CORP SANTA MONICA CALIF
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The process of identifying, collecting and using historical data for estimating the life-cycle costs of a weapon system is discussed. The focus is on data-related problems which currently constrain the accuracy and reliability of life-cycle cost estimates. Particular attention is given to the costs of ownership. A case example is provided to illustrate the estimation of life-cycle costs using macro cost data for an operational weapon system. Some of the uncertainties inherent in the data collection and analysis processes are also discussed. Specific recommendations include implementing operationally consistent life-cycle cost estimation procedures, improving weapon system cost visibility in cost data systems, establishing and maintaining a nomenclature directory, implementing better cost allocation rules, anticipation of life-cycle cost decision data requirements, and constructing and maintaining a special data base for life-cycle cost analysis and methodology development.
- Manufacturing and Industrial Engineering and Control of Production Systems