USE OF COST-ESTIMATING RELATIONSHIPS IN THE AIR-FRAME INDUSTRY,
Abstract
The paper described a survey of cost-estimating procedures employed by the airframe industry. The use of statistical techniques was found to be surprisingly extensive, although considerable differences were found to exist among airframe firms insofar as the nature of the techniques in use. These differences include their functional forms, the explanatory variables employed, and the level of detail at which they are employed. In general, the current use of statistical procedures by airframe cost estimators is not the product of the increase in the volume of detail demanded by the government over the last five years, but is considerably more deeply rooted, extending back prior to World War II. In addition to being less expensive to apply, these procedures appear to be superior to industrial engineering procedures in accounting for the significant variability in the fabrication and assembly of successive production units which has been so characteristic of the airframe industry. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1966
- Accession Number
- AD0642235
Entities
People
- M. A. Margolis
Organizations
- RAND Corporation