Parametric cost estimation for amphibious assault vehicle's life cycle cost.

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by  Peters, Norman L.;San Miguel, Joseph G.

.
NAVAL POSTGRADUATE SCHOOL
Monterey
California
,
THESIS
PARAMERIC COST ESTIMATION FOR AMPHIBIOUS
ASSAULT VEHICLE'S LIFE CYCLE COSTS
by
Norman L. Peters
December, 1991
Thesis Advisor: Joseph G. San Miguel
Approved for public release; distribution is
unlimited
T259266

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PROGRAM PROJECT TASK WORK UNIT
ELEMENT NO NO NO ACCESSION NO
1P1ATRITALEME(ITncRluIdeCSecuCriOtySTClassEifiScaTtiIonM)ATION FOR AMPHIBIOUS ASSAULT VEHICLE'S LIFE CYCLE
COSTS (UNCLASS)
12 PERSONAL AUTHOR(S)
Peters, Norman L.
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Master's Thesis FROM TO 1991 December 131
,
i6 supplementary notation The views expressed in this thesis are those of the author
and do not reflect the official policy or position of the Department of
Defense or the U.S. Government
17 COSATI CODES 18 SUBJECT TERMS (Continue on reverse if necessary and identify by block number)
FIELD GROUP SUB-GROUP Cost Estimating Relatioships , Life Cycle Costs,
Advanced Amphibious Assault Vehicle
19 ABSTRACT (Continue on reverse if necessary and identify by block number)
This thesis investigates the need to predict life cycle cost in the
most effective and efficient manner through the development of cost es-
timating relationships (CERs) using only performance input parameters.
Utilizing statistical software especially developed for program managers,
parametric cost estimating relationship module (PACER), CERs were developec
and then evaluated for statistical soundness. The object of this study was
to develop a means by which the program manager could estimate fairly ac-
curately total life cycle costs. With this information in hand, the progran
manager could determine if a weapon system is affordable early in the ac-
quisition process.
The result of this study was the derivation of three predictive models
that relate cost to required performance parameters. Based solely upon per-
formance requirements, a relationship between cost and required performance
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22a NAME OF RESPONSIBLE INDIVIDUAL 22b TELEPHONE (Include Area Code) 22c OFFICE SYMBOL
Joseph G. San Micmpl 408-646-2187 A?/jg"
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r was established and their impact upon life cycle costs.
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Approved for public release; distribution is unlimited,
Parametric Cost Estimation for Amphibious
Assault Vehicle's Life Cycle Cost
by
Norman L. Peters
Captain, United States Marine Corps
B.S., U.S. Naval Academy, 1985
Submitted in partial fulfillment
of the requirements for the degree of
MASTER OF SCIENCE IN MANAGEMENT
from the
NAVAL POSTGRADUATE SCHOOL
December 1991 ^
1.1
ABSTRACT
This thesis investigates the need to predict life cycle cost in the most
effective and efficient manner through the development of cost estimating
relationships (CERs) using only performance input parameters. Utilizing
statistical software especially developed for program managers, parametric
cost estimating relationship module (PACER), CERs were developed and then
evaluated for statistical soundness. The object of this study was to develop
a means by which the program manager could estimate fairly accurately total
life cycle costs. With this information in hand, the program manager could
determine if a weapon system is affordable early in the acquisition process.
The result of this study was the derivation of three predictive models
that relate cost to required performance parameters. Based solely upon
performance requirements, a relationship between cost and required
performance was established and their impact upon life cycle costs.
IV