Review of Factors Impacting Cost Benefit Analysis (CBA) for Implementing Improvements to the Air Force Technical Order System
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF LOGISTICS AND ACQUISITION MANAGEMENT
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This research focused on developing a Cost Benefit Analysis process for Program Managers to implement when deciding what technical order format-- paper, computerized or automated--to purchase. Factors which determined the outcome are costs life cycle cost considering technical order format qualitative issues characteristics which are benefits of a technical order format and system responsiveness time required to develop or modify a technical order in each format. A literature review revealed problems with the paper technical order format, management infrastructure, quantitative cost estimates for different formats, and different techniques which could be used for a cost benefit analysis. Structured interviews were used to gather, from functional experts, subjective data and historical data about technical orders. The data collected was then used in one of three measurement techniques 1 a simulation model to estimate the amount of time required to develop and modify each technical order format 2 a life cycle cost analysis spreadsheet to evaluate the cost of each format or 3 an analytical hierarchy to determine which technical order format is the best. On the basis of the estimations and assumptions made for this analysis, the research determined that the automated technical order format is the best format.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies