Accession Number : ADP001229

Title :   Design to Cost under Changing Program Conditions,

Corporate Author : DEFENSE LOGISTICS AGENCY ALEXANDRIA VA

Personal Author(s) : Bemis,John C.

Report Date : SEP 1982

Pagination or Media Count : 10

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.

Descriptors :   *Logistics support, *Cost analysis, *Manufacturing, Design to cost, Cost estimates, Cost models, Production, Rates, Quantity, Cost effectiveness, Management planning and control, Planning programming budgeting, Statistical analysis, Management information systems, Conferencing(Communications), Symposia

Distribution Statement : APPROVED FOR PUBLIC RELEASE