Design to Cost Under Changing Program Conditions

Abstract

Department of Defense Directive, titled 'Design to Cost' requires that Design to Cost (DTC) goals be submitted as part of the normal program review milestones, and that these goals be supported by applicable rationale such as quantities, production rates, and cost/quantity relationships. Given the dynamic nature of the programs, the question arises as to what effect the program changes have on the DTC goals. This paper proposes a method for adjusting DTC goals under conditions of changing program quantities and/or anticipated production rates. The DoD Product Engineering Services Office (DPESO) has developed a cost model which relates unit cost to cumulative quantity produced and production rate per year. These three variables are depicted as a three dimensional response surface. The model provides planning information of sufficient accuracy to assist in estimating the effects of various production rate profiles, and would appear to have application in the design to cost arena.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1982
Accession Number
ADP001229

Entities

People

  • John C. Bemis

Organizations

  • Defense Logistics Agency

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Acquisition
  • Computer Programs
  • Cost Estimates
  • Cost Models
  • Costs
  • Defense Systems
  • Department Of Defense
  • Directives
  • Engineering
  • Equations
  • Production
  • Production Rate
  • Supply Chain Management
  • Three Dimensional
  • Weapon Systems

Readers

  • Life Cycle Cost Analysis
  • Regression Analysis.
  • Systems Analysis and Design