Total Ownership Cost: An Exercise in Discipline

Abstract

This paper presents number of recommendations regarding Total Ownership Costs (TOC): (1) Designate the TOC target as a System Key Performance Parameter (KPP) -- causes the Program Manager to focus on and continually report on TOC, places TOC on equal footing with performance, facilitates trade-off analysis in favor of TOC, and focuses contractors on TOC-efficient design; (2) Establish TOC databases for tracking TOC cost drivers and measuring R-TOC effectiveness; (3) Establish contractor incentives for improving system TOC characteristics; and (4) Garner user/upper leadership support for TOC goals.

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Document Details

Document Type
Technical Report
Publication Date
Sep 30, 2004
Accession Number
ADA498968

Entities

People

  • Brad R. Naegle
  • Michael W. Boudreau

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • C4I
  • Ground and Sea Platforms
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Command And Control
  • Command And Control Systems
  • Contracts
  • Department Of Defense
  • Electronic Aircraft
  • Knowledge Management
  • Logistics
  • Maintenance
  • Management Personnel
  • Military Acquisition
  • Organizational Structure
  • Public Policy
  • Students
  • Supply Chain
  • Test Equipment

Fields of Study

  • Engineering

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis