Evaluation of the Cost Effectiveness Analysis Model Being Developed for the Component Improvement Programs of the Air Force and the Navy

Abstract

This thesis examines the Cost Effectiveness Analysis (CEA) model used by the Air Force to assist with the decision making process of their Cost Improvement Program (CIP). The emphasis was on studying the model for its use in the Naval Component Improvement Program. With an example provided by General Electric, a sensitivity analysis was performed to determine the cost drivers of the model. For the example, the major cost drivers were found to be the Incorporation Style, Kit Hardware Cost, and the Spare Part Factor. Next a simple simulation was conducted to determine how random component failures affect the life cycle cost variability of the CEA model. The author concluded that additional simulation studies should be conducted for other causes of variation. A detailed analysis of the model formulas and assumptions are needed as part of a users' manual.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1992
Accession Number
ADA256132

Entities

People

  • Gerald L. Crowder

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Attrition
  • Classification
  • Cost Effectiveness
  • Cost Models
  • Government Procurement
  • Life Cycle Costs
  • Logistics
  • Maintenance
  • Materials
  • Military Organizations
  • Simulations
  • Spare Parts
  • Systems Engineering
  • Test And Evaluation
  • United States

Readers

  • Computational Modeling and Simulation
  • Life Cycle Cost Analysis