Inhibitors to the Use of Life Cycle Costing: Results of a Survey of Military/Industrial Managers

Abstract

This study was undertaken in an attempt to determine the reasons for limited use of life cycle costing in material management. The author, while a member of Training and Doctrine Command in Combat Developments for six years and then in project management activities for the next two years, saw a great divergence of opinion in the use of life cycle cost. The decision makers in TRADOC were considering long range cost to the government in their Cost and Operational Effectiveness Analysis (COEA), DoD policy makers were praising life cycle cost as a decision criteria, The Defense Systems Management College taught life cycle cost as the primary consideration for long term logistic decisions, yet the project management personnel appear to be lacking in how and when to apply life cycle cost techniques. It was apparent to the author that this was a wide spread problem which would result in continued higher long term cost to the government unless an acceptable cost criteria could be established by DoD and provided to decision makers as implementing guidance. This study examined the attitudes of DoD policy makers, DoD project managers, and Industry project managers toward life cycle costing and their perception of the guidance and criteria in its implementation.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1979
Accession Number
ADA072553

Entities

People

  • Troy V. Caver

Tags

Communities of Interest

  • C4I
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Contractors
  • Contracts
  • Cost Models
  • Cost Reductions
  • Defense Systems
  • Department Of Defense
  • Governments
  • Instructions
  • Life Cycle Costs
  • Life Cycles
  • Management Personnel
  • Materials
  • Money
  • Procurement
  • Project Management
  • Systems Management

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis
  • Systems Analysis and Design