Accession Number : AD0642235

Title :   USE OF COST-ESTIMATING RELATIONSHIPS IN THE AIR-FRAME INDUSTRY,

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Margolis,M. A.

Report Date : OCT 1966

Pagination or Media Count : 10

Abstract : The paper described a survey of cost-estimating procedures employed by the airframe industry. The use of statistical techniques was found to be surprisingly extensive, although considerable differences were found to exist among airframe firms insofar as the nature of the techniques in use. These differences include their functional forms, the explanatory variables employed, and the level of detail at which they are employed. In general, the current use of statistical procedures by airframe cost estimators is not the product of the increase in the volume of detail demanded by the government over the last five years, but is considerably more deeply rooted, extending back prior to World War II. In addition to being less expensive to apply, these procedures appear to be superior to industrial engineering procedures in accounting for the significant variability in the fabrication and assembly of successive production units which has been so characteristic of the airframe industry. (Author)

Descriptors :   (*AIRFRAMES, *COSTS), MATHEMATICAL PREDICTION, AIRCRAFT INDUSTRY, STATISTICAL PROCESSES

Subject Categories : Aircraft
      Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE