Assessing Cost-Reduction Initiatives in a Changing Defense Acquisition Environment: A Handbook.
Abstract
In the changing defense acquisition environment, cost analysts have been confronted with claims of significant savings from new manufacturing techniques and other cost reduction initiatives. In some cases, acquisition programs would be unaffordable without these initiatives. This handbook provides methods for assessing the realism of savings estimates from cost reduction initiatives. While the initiatives are of recent vintage, some of them have historical antecedents or have been practiced in the commercial world before their adoption by government contractors. Evidence from these practices can be helpful in assessing the initiatives. The handbook provides this historical perspective, including early implementations and lessons, where available. It also provides a taxonomy of the initiatives, including generally accepted definitions, hypothesized cost impacts, benefits, and caveats. The potential impact of interdependencies among initiatives is highlighted. A recommended process for assessing initiatives, based on an investment framework of costs and benefits, is also presented and discussed.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1998
- Accession Number
- ADA336265
Entities
People
- David E. Hunter
- J. R. Nelson
- James P. Woosley
- John R. Hiller
- Karen W. Tyson
Organizations
- Institute for Defense Analyses