Total Ownership Cost Considerations in Key Performance Parameters and Beyond (Defense Acquisition Review Journal)

Abstract

Total Ownership Cost (TOC) is an initiative to manage costs over the entire life cycle of a system, and the Program Manager (PM) is responsible for estimating and managing system TOC using input from key stakeholders. There are several major categories of costs that contribute to TOC. For instance, the phases of a weapon system's life cycle may include research and development, production, operating and support, and disposal. This paper addresses ways to encourage a Life Cycle Cost (LCC) perspective, examine the critical issues associated with understanding and implementing the TOC concept, and assist the PM with the knowledgeable execution of a TOC plan. Also, metrics necessary to ensure appropriate implementation are explored, various methods of controlling and reducing TOC are evaluated, and areas where the Department of Defense needs to refocus are addressed.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2005
Accession Number
ADA432879

Entities

People

  • Brad R. Naegle
  • Michael W. Boudreau

Organizations

  • Defense Acquisition University

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Army Training
  • Civilian Personnel
  • Contractors
  • Contracts
  • Cost Reductions
  • Databases
  • Department Of Defense
  • Engineering
  • Fighter Aircraft
  • Governments
  • Life Cycles
  • Logistics
  • Maintenance
  • Mechanical Engineering
  • Military Acquisition
  • Test And Evaluation

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis