Open AccessPrécis—Assessment of Airframe Production Cost Risk
Author(s) -
John A. Finchum
Publication year - 1974
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.21.2.237
Subject(s) - airframe , cost estimate , production (economics) , production cost , risk analysis (engineering) , computer science , cost overrun , operations research , operations management , business , engineering , economics , systems engineering , construction engineering , microeconomics , construction industry , mechanical engineering , aerospace engineering
Cost growth of weapon systems is a major concern of the DOD and its contractors. Almost half of the cost overrun on major weapon systems during the late 1960's and early 1970's was due to refinement of original cost estimates for reasons other than changes in performance, economic conditions, engineering and construction scheduling. A fruitful area to which to apply cost risk assessment techniques is the air-frame production cost during the proposal stage of an aircraft.