The effects of differenct production rate measures and cost structures on rate adjustment models
By: Dan C. Boger and Shu S. Liao
Contributors: Liao, Shu S.; Naval Postgraduate School (U.S.). Dept. of Administrative Sciences
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1990
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 20
Subjects: WEAPON SYSTEMS; COST MODELS; COSTS; STRUCTURES
Other titles: NPS-54-90-006.
Description: The effect of production rate on the cost of weapon systems has attracted much attention in      the cost estimating community in recent years. A variety of adjustments to weapon systems      cost models have been proposed to reflect the impact of different production rates. The most      popular solution is to add a rate term to the traditional learning curve model. This paper      examines the effects of different rate measures and cost structures on rate adjustment      models. Numerical examples illustrate that the production rate term should be measure as a      ratio and not as an absolute quantity of a production lot or a period. The paper also points      out that a rate adjustment model is appropriate only with data from plants which have not      undergone changes in cost structure. Production rate, Rate adjustment, Learning curve, Cost      estimating. (eg)
Notes: Cover title.

"NPS-54-90-006."

"February 1990."

AD A220 842.

Includes bibliographical references (p. 17-18)

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