Economic Analysis Model Evaluation for Technology Modernization Programs.

Abstract

This research effort attempted to validate the economic analysis model contained in Chapter V of the Aeronautical Systems Division (ASD) Technology Modernization Guidebook published in July 1982. The ASD Model is used for determining the economic feasibility of potential capital investments. The researcher applied the ASD Model to the F-16 Tech Mod Programs and compared the ASD Model to actual savings data. Suggestions to improve and guidelines for applying the ASD Model was presented. Background literature reviews three existing Tech Mod Programs as well as several capital budgeting techniques used for investment decision making. Defense Department reports were also reviewed concerning the declining productivity growth within the defense industrial base. The timing of the savings and purchase of the capital equipment were also important to ensuring accurate application of the ASD Model. Inclusion of 'Lost Profit' as a variable in the ASD Model was recommended as well as better traceability of actual savings data to facilitate future validation studies.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1983
Accession Number
ADA135635

Entities

People

  • R. E. Hails Jr

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Advanced Manufacturing
  • Aerospace Industry
  • Air Force
  • Analysis Of Variance
  • Business Administration
  • Contracts
  • Data Analysis
  • Defense Industry
  • Department Of Defense
  • Economic Analysis
  • Economics
  • Electronics Industry
  • Investments
  • Literature Surveys
  • Money
  • Production

Readers

  • Computational Modeling and Simulation
  • Defense Acquisition Program Management
  • Industrial Economics