An appraisal of cost-effectiveneess models used in the Air Force and Navy aircraft engine Component Improvement Programs.
Davis, James D.
McMasters, Alan W.
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This thesis examines the cost-effectiveness models used by the Air Force and Navy to assist with the decision-making process of their Component Improvement Programs (CIP). The focus is on the elements of the two models and the reasonableness of each model's results. A sensitivity analysis was performed on significant input parameters to determine what effect errors in these parameters would have on the predicted return-on-investment (ROI) results. The author concluded that, although the models provide insight into the life-cycle costs (LCC) of aircraft engines, they are extremely sensitive to errors in certain input variables and should not be relied upon for CIP budget justification.
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