Cost Savings Analysis Guidelines for Manufacturing Technology Projects.
Final rept. for 1985,
SYSCON CORP WASHINGTON DC
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A program was conducted to develop a costbenefit analysis model for use in documenting the savings resulting from the performance of manufacturing technology projects sponsored by the Naval Air Systems Command. The model which has been developed satisfies the following objectives a Sufficiently simple to use by personnel with no training in accounting or economics b applicable to a wide range of manufacturing technology projects and the circumstances and environment in which their results are applied and c uses data from existing accounting systems. The model consists of two methodologies. The first methodology, referred to as Changed Price, is applied in those instances in which the price per unit charged to the Government is known for both the before and after manufacturing process. The second methodology, referred to as Changed Cost, is applied in those instances in which neither the before nor the after unit price can be readily identified, as in the case of producing a sheet metal skin for an aircraft access panel. Step-by-step procedures and case studies are provided for both the Changed Price methodology and the Changed Cost methodology. Author
- Economics and Cost Analysis