Development phase cost drivers for production costs
Subtitle: the case of tracked vehicles
By: Dan C. Boger, and David S. Malcolm
Contributors: Malcolm, David S.; Naval Postgraduate School (U.S.). Dept. of Administrative Sciences
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1993
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 26
Subjects: COST MODELS; TRACKED VEHICLES
Other titles: NPS-AS-93-012.
Description: There are two different approaches, the disjoint and sequential models, which attempt to      account for differences between development unit cost and production unit cost. The disjoint      model uses a production cost improvement curve that is physically separate from the      development cost improvement curve. For the sequential model, however, the first unit cost of      production units directly follows the last development unit due to a carryover of the cost      improvement process. This paper, using a sample of seven tactical armored tracked vehicles,      first obtains the theoretical first unit production costs for the vehicles under both sequential and      disjoint models. Then, using various measures of activities in the development phase, CERs      are obtained for both models which relate activities in the development phase to theoretical      first unit production cost. The results indicate that, for the disjoint model, first unit production      costs depend on development first unit costs. For the sequential model, first unit production      costs depend on the average development cost as well as the time span between the end of      development and the beginning of production.... Cost estimation, Cost drivers, Production      costs, Development phase, Tracked vehicles.
Notes: Title from cover.

"NPS-AS-93-012."

"February 1993."

AD A263 196.

Includes bibliographical references (p. 23-24)

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