AN INTRODUCTION TO EQUIPMENT COST ESTIMATING

Abstract

There are three basic methods used for cost estimation--the industrial engineering, analogy, and statistical approaches. The statistical method is considered the most useful for government cost analysts, whether the purpose is long-range planning or contract negotiation. An estimating procedure must rely on a data base that includes cost, physical and performance descriptions, and a development and production history of previous equipment programs. Experience has proved the value of the learning-curve concept. Its basis is that each time the total quantity of items produced doubles, the cost per item is reduced to a constant percentage of its previous cost. A thorough knowledge of the learning-curve phenomenon is indispensable to persons involved in cost analysis. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1969
Accession Number
AD0702424

Entities

People

  • C. A. Batchelder
  • H. E. Boren Jr.
  • H. G. Campbell
  • J. A. Dei Rossi
  • J. P. Large

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Air Platforms
  • Energy and Power Technologies
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerospace Industry
  • Aircraft Equipment
  • Aircraft Industry
  • Aircrafts
  • Airframes
  • Contracts
  • Cost Analysis
  • Databases
  • Department Of Defense
  • Engineering
  • Industrial Engineering
  • Manufacturing
  • Production
  • Statistical Analysis
  • Statistical Inference
  • Supersonic Aircraft
  • Transport Aircraft

Readers

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  • Systems Analysis and Design
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