Design to Cost: Trends and Problems,
DEPARTMENT OF THE ARMY WASHINGTON DC
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It is appropriate to include the Design-to-Cost DTC concept as a topic for consideration at the Army Operations Research symposium because successful implementation of DTC will have as its base accurate cost estimates prepared by Operations Research Analysts in the weapons acquisition community. In the two years since the Department of Defense DOD issued DOD Directive 5000.1, Acquisition of Major Defense Systems all of the services have initiated development of new weapon systems under DTC. And recently, in a memorandum dated 18 June 1973, Deputy Secretary of Defense Clements established that in the future all new major programs will have established DTC goals. The DTC concept was introduced to make cost a major design criterion equal with performance. DTC establishes a unit production cost as a design goal, and a primary design parameter, at a price DOD can afford to pay for the quantities needed. DTC emphasizes the importance of establishing realistic costs for unit production cost goals, and then designing the weapon and managing the program within these goals. The concept requires the Program Manager and the contractors to conduct cost, schedule, and performance tradeoffs to meet the goals.