The Use of Cost Estimating Relationships versus Accounting Models for Estimating Maintenance and Repair Costs: A Methodology Demonstration.

Abstract

This thesis demonstrated a methodology of developing a Cost Estimating Relationship (CER) that is capable of generating nearly the same cost estimates as an accounting type of cost model. A cost model was first developed that estimated annual recurring maintenance and repair associated costs of a jet engine. This model used 51 input variables and 30 equations and represented an accounting approach to cost estimating with input requirements at low levels of detail. Using techniques of multiple linear regression, a CER was developed that used only seven aggregated variables to estimate the same cost at an acceptable level of accuracy. The emphasis in this thesis is on the demonstration of a methodology that can be used to develop CERs. Both the accounting type cost model and the CER in this thesis are exclusively for the validation of a methodology and were developed using an artificially generated data base. As such they are not valid for any cost estimation purposes. Keywords: Life cycle costs; Aircraft maintenance; Cost analysis; Regression analysis; Theses.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1987
Accession Number
ADA186923

Entities

People

  • Rajiv S. Verma

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Air Platforms
  • Ground and Sea Platforms
  • Human Systems
  • Materials and Manufacturing Processes
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Aircrafts
  • Business Administration
  • Computer Programs
  • Cost Analysis
  • Cost Estimates
  • Data Science
  • Databases
  • Information Science
  • Jet Engines
  • Knowledge Management
  • Life Cycle Costs
  • Maintenance
  • Models
  • Regression Analysis
  • Statistical Analysis

Readers

  • Life Cycle Cost Analysis