Total ownership cost considerations in key performance parameters and beyond
Boudreau, Michael W.
Naegle, Brad R.
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Total Ownership Cpst (TOC) is an initiative to manage costs over the entire life cycle of a system, and the Program Manager (PM) is responsible for estimating and managing system TOC using input from key stakeholders. There are several major categories of costs that contribute to TOC. For instance, the phases of a weapon system's life cycle may include research and development, production, operating and support, and disposal. This paper addresses ways to encourage a Life Cycle Cost (LCC) perspective, examine the critical issues associated with understanding and implmenting the TOC concept, and assist the PM with the knowledgeable execution of a TOC plan. Also metrics necessary to ensure appropriate implementation are explored, various methods of controlling and reducing TOC are evaluated, and areas where the Department of Defense needs to refocus are addressed.The original report (AM-03-004) can be found at http://hdl.handle.net/10945/345