A user's manual for the Cost Effectiveness Analysis Model (CEAMOD) version 3.0

Abstract

This thesis develops a comprehensive procedures manual for Version 3. 0 of the Cost Effectiveness Analysis (CEA) Model. The CEA Model is used in each service's Component Improvement Program (CIP) as a means of doing cost effectiveness analysis on Engineering Change Proposals (ECPs) for aircraft engines. The model uses expected values to calculate changes in life cycle costs that result from implementation of the ECP. A detailed analysis of the spreadsheet's calculations is provided to explain to users the model's logic. This comprehensive manual covers the model's history, assumptions, limitations, and format. Each worksheet of the model is described in detail including its purpose, explanations of each column, associated cell formulas and the logic behind them. The appendix provides a sample of each page of the CEA Model printout.