Open Systems and TOC

Question 1

MOSA

Answer 1

Modular open system approach, designed to accept future tech upgrades

Question 2

benefits of open systems

Answer 2

1. system fielded faster
2. increased competition
3. better performance

Question 3

challenges of open systems

Answer 3

1. lack of supplier control
2. lack of technical data
3. standards management.

Question 4

TOC

Answer 4

total ownership cost, acquisition cost + ops and support costs

Question 5

SEP impact to TOC

Answer 5

TOC is directly traced to SEP as system parameters are determined.

Question 6

Ops and support costs

Answer 6

resources required to operate and support a system during it’s useful life

Question 7

When is LCC locked in?

Answer 7

Post-CDRA, between EMD and PD

Question 8

A prediction of what the cost of future events will be

Answer 8

cost estimate

Question 9

POE

Answer 9

program office estimate, detailed estimate of cost for high level decisions

Question 10

life cycle cost composition

Answer 10

1. flyaway costs,
2. weapon system costs,
3. procurement costs,
4. program act costs,
5. life cycle costs

Question 11

direct cost

Answer 11

cost identified with a final cost objective

Question 12

indirect cost

Answer 12

any cost not identifiable with a final cost objective

Question 13

fixed cost

Answer 13

does not change with rate of production

Question 14

variable cost

Answer 14

changes with rate of production

Question 15

recurring cost

Answer 15

occurs again and again, assembly labor, materials

Question 16

non-recurring cost

Answer 16

one time cost incurred to produce items

Question 17

4 types of cost estimates

Answer 17

1. analogy - comparison to existing system
2. parametric - based on design characteristic.
3. engineering - bottom up
4. extrapolation - actual costs based on data

Question 18

analogy

Answer 18

quick, inexpensive, easy to change

high level, subjective, not precise

Question 19

parametric

Answer 19

easy to do what if drills, inexpensive, OSD CAIG preferred.

only as good as database, need historical data

Question 20

engineering

Answer 20

very accurate in later stages of EM&D

very expensive, time consuming, hard to do what if

Question 21

extrapolation

Answer 21

little subjectivity, very accurate, OSD CAIG

unable until late phases, budget may be submitted.

Question 22

as production doubles, cost/unit decreases by a constant %

Answer 22

learning curve

Question 23

3 common estimating errors

Answer 23

omissions, overly optimistic, incorrect cost estimating technique.

Question 24

4 categories of life cycle cost/colors of money

Answer 24

1. R&D - RDT&E
2. Investment Costs - Proc, MILCON
3. Ops and Support - O&M, MILPERS
4. Disposal Costs - O&M