The Feasibility of a Cost-Effectiveness Assessment of Air Force Jet Engine Warranties.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF SYSTEMS AND LOGISTICS
Pagination or Media Count:
With the enactment of Public Laws P.L. 98-212 and 98-525 warranties must be considered for DOD weapon systems. It is DODs policy to only obtain cost effective warranties. To determine if a warranty is cost effective a cost-benefit analysis is required. There has been concern by Congress, the General Accounting Office, and the Air Force about the adequacy of the cost-benefit analyses. This study examined the nature and availability of information needed to conduct cost-benefit analysis of warranties. A theoretical model of warranty relationships was described and used to identify the information required to assess the benefits and costs of warranties. In order to limit the scope of the research, only jet engine warranties were considered. This effort is useful in that a structure for warranty cost-benefit analysis is provided. In addition, several problem areas involved in evaluating and measuring warranty costs and benefits are identified and discussed. Keywords Air Force procurement.
- Economics and Cost Analysis
- Jet and Gas Turbine Engines