Standard Tools for Measuring Post Implementation TECH MOD (Technology Modernization) Cost Savings.
Final rept. 4 Sep 84-5 Aug 85,
INFORMATION SPECTRUM INC ARLINGTON VA
Pagination or Media Count:
The Department of Defense is attempting to improve contractor productivity and reduce weapon system cost with three interrelated initiatives. These three initiatives are competition, improved quality, and modernization. Competition is being stimulated by such actions as the establishment of competitive advocates to oversee the contracting process, component breakout, dual sourcing and leaderfollower. Quality is being addressed through warranties, guarantees and incentives. Modernization of the factory is being encouraged through programs such as Manufacturing Technology Man Tech and Technology Moderniation Tech Mod known DoD wide as the Industrial Modernization Incentive Program IMIP. The objective of this study was to develop methodstools to measure and validate the post implementation cost savings from Technology Modernization TECH MOD projects. Although many contractors are involved with the TECH MOD program, only six have completed the analysis, design and implementation phases. Of these, four have measured actual savings, and the measurement methodology employed varied in each case. The advantages and disadvantages of each method are examined. A matrix was developed as an aid to the program office based on the four methods of cost savings measurement study, formula, automated tracking, and the cost management system restructure and the factors that impact TECH MOD. Keywords Cost savings Cost effectiveness, Productivity.
- Administration and Management
- Economics and Cost Analysis