Space Shuttle: A Case Study in Economic Analysis

Abstract

This case study reports on an application of economic analysis; provides examples of the methods; draws conclusions and comments on lessons learned. It was developed from NASA and contractor primary references and from the author's experiences. In 1971, NASA was faced with a dilemma. The Space Shuttle Program, which had been established to substantially reduce the cost of space operations, was being designed to reduce principally transportation cost. Issues were surfacing which established that this transportation cost emphasis did not account for Shuttle development cost and the great bulk of the costs of a satellite program. OMB, furthermore, was imposing a peak funding ceiling which precluded developing the then - baselined configuration. Economic analysis performed by MATHEMATICA, Inc., succeeded in establishing the economic worth of Shuttle and pinpointing the most economical configuration. Of particular interest are the explicit treatment of uncertainty in the data base and the innovative methods used to graphically portray results.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1976
Accession Number
ADA033871

Entities

People

  • Byron Theurer

Organizations

  • Defense Systems Management College

Tags

Communities of Interest

  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aircrafts
  • Artificial Satellites
  • Business Administration
  • Case Studies
  • Cost Estimates
  • Databases
  • Department Of Defense
  • Economic Analysis
  • Economics
  • Investments
  • Launch Vehicles
  • Lessons Learned
  • Management Personnel
  • Resource Management
  • Rocket Engines
  • Space Transportation
  • Spacecraft

Readers

  • Aerospace Engineering.
  • Educational Psychology
  • Life Cycle Cost Analysis

Technology Areas

  • Space