Open Systems and TOC Flashcards
MOSA
Modular open system approach, designed to accept future tech upgrades
benefits of open systems
- system fielded faster
- increased competition
- better performance
challenges of open systems
- lack of supplier control
- lack of technical data
- standards management.
TOC
total ownership cost, acquisition cost + ops and support costs
SEP impact to TOC
TOC is directly traced to SEP as system parameters are determined.
Ops and support costs
resources required to operate and support a system during it’s useful life
When is LCC locked in?
Post-CDRA, between EMD and PD
A prediction of what the cost of future events will be
cost estimate
POE
program office estimate, detailed estimate of cost for high level decisions
life cycle cost composition
- flyaway costs,
- weapon system costs,
- procurement costs,
- program act costs,
- life cycle costs
direct cost
cost identified with a final cost objective
indirect cost
any cost not identifiable with a final cost objective
fixed cost
does not change with rate of production
variable cost
changes with rate of production
recurring cost
occurs again and again, assembly labor, materials
non-recurring cost
one time cost incurred to produce items
4 types of cost estimates
- analogy - comparison to existing system
- parametric - based on design characteristic.
- engineering - bottom up
- extrapolation - actual costs based on data
analogy
quick, inexpensive, easy to change
high level, subjective, not precise
parametric
easy to do what if drills, inexpensive, OSD CAIG preferred.
only as good as database, need historical data
engineering
very accurate in later stages of EM&D
very expensive, time consuming, hard to do what if
extrapolation
little subjectivity, very accurate, OSD CAIG
unable until late phases, budget may be submitted.
as production doubles, cost/unit decreases by a constant %
learning curve
3 common estimating errors
omissions, overly optimistic, incorrect cost estimating technique.
4 categories of life cycle cost/colors of money
- R&D - RDT&E
- Investment Costs - Proc, MILCON
- Ops and Support - O&M, MILPERS
- Disposal Costs - O&M
