Estimating and Explaining the Production Cost of High-Technology Systems: The Case of Military Aircraft

Abstract

This study tests relationships between measures of the state-of-the- art of technology and advances in technology with production cost. The analysis is conducted using a sample of military aircraft. Parametric cost estimating models are developed. Actual production costs are compared with estimated production costs predicted from the models to create measure of cost overruns and cost underruns. A set of factors that are associated with instances of cost over/underruns are identified. These factors reflect aspects of the aircraft program, the political and economic environment at the time of commencement of production on the aircraft program, and the financial condition of the prime contractor.

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Document Details

Document Type
Technical Report
Publication Date
May 17, 1989
Accession Number
ADA208391

Entities

People

  • O. D. Moses

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Air Platforms
  • Space

DTIC Thesaurus Topics

  • Accounting
  • Aerospace Industry
  • Aircrafts
  • Airframes
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Overruns
  • Costs
  • Department Of Defense
  • Governments
  • Investments
  • Military Aircraft
  • Money
  • Negotiations
  • Procurement
  • Production

Readers

  • Life Cycle Cost Analysis