Identification and Importance of Factors in Component Breakout and High Dollar Value Spare Part Breakout Decisions.
Abstract
The purpose of this study was to investigate why component breakout is not more extensively used as a cost saving technique in U.S. Air Force procurements. To accomplish this review of the literature, and component breakout documentation maintained at Aeronautical Systems Division was completed. These reviews resulted in a composite list of twelve factors used to justify a non-breakout decision. Sixteen System Program Office directors were then asked to consecutively rank the factors in order of importance to a breakout decision. A rank of one was given to the most important factor with the least important receiving a rank of twelve. Overall importance was then determined by summing the ranks given to each factor. The factor with the lowest sum was considered to be most important and so on until the factor with the highest sum was identified as the least important. A nonparametric statistical test was conducted on this ranked data to determine the level of agreement between the SPO directors of the relative importance of each factor. The results of this test indicated a high level of agreement among the SPO director on the overall importance of each factor in a breakdown decision. Keywords: Cost analysis; Contracts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1987
- Accession Number
- ADA187767
Entities
People
- Mitchell L. Heitmann
Organizations
- Air Force Institute of Technology