Identification and Importance of Offsetting Costs in Component Breakout.
Abstract
This research effort proposes a composite list of offsetting costs associated with component breakout and provides an assessment of the importance of each offsetting cost to a breakout decision. The researchers identified, through a review of contract files, and a search of literature, fourteen general categories of offsetting costs. Twenty-one component break-out experts were then asked to rank the offsetting costs. By ranking the offsetting costs, the researchers were able to determine the relative importance of each offsetting cost to a breakout decision. Twenty-one experts generally agree on the importance of each offsetting cost. Manpower was identified as the most important offsetting cost. The first essential step to establishing a realistic estimate of the potential cost savings of component breakout is to identify the offsetting costs. The next step is to evaluate each offsetting cost using a method of analysis that accurately predicts the impact of the particular cost. However, neither quantitative nor qualitative guidance has been developed for analyzing offsetting costs. Erroneous breakout decisions could result.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1984
- Accession Number
- ADA147017
Entities
People
- J. R. Molina
- K. M. Johnson
Organizations
- Air Force Institute of Technology