Accession Number : AD0699191
Title : LIFE CYCLE COSTING IN SYSTEM ACQUISITION.
Corporate Author : LOGISTICS MANAGEMENT INST WASHINGTON D C
Report Date : NOV 1969
Pagination or Media Count : 47
Abstract : Life cycle costing is defined as the process of estimating all those costs--development, production, operation, and support--which can influence the choice among competing design concepts or specifications, among possible procurement procedures, or among competing proposals for production in the acquisition of major defense hardware systems. After discussion of its objectives and characteristics, life cycle costing is separated into three methods: the implicit method; the cost estimating relationship method; and the element estimate method. The appropriateness of each method is discussed (a) for different stages of the system life cycle, (b) for 'incremental improvement' systems and 'new generation' systems, and (c) for overall system investment, overall operation and support cost, major subsystem investment, and selected operation and support cost elements. The roles of element structures, cost factors, and costing rules in Life Cycle Cost analysis are outlined.
Descriptors : (*DEPARTMENT OF DEFENSE, LOGISTICS), (*MILITARY PROCUREMENT, COST EFFECTIVENESS), MILITARY SUPPLIES, MAINTENANCE, LIFE EXPECTANCY, MANPOWER, COSTS, DECISION MAKING, MANAGEMENT PLANNING AND CONTROL, PREDICTIONS
Subject Categories : Administration and Management
Economics and Cost Analysis
Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE