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dc.contributor.authorBoudreau, Michael
dc.contributor.authorNaegle, Brad R.
dc.contributor.otherNaval Postgraduate School (U.S.)
dc.date30 September 2003
dc.date.accessioned2012-03-14T17:01:20Z
dc.date.available2012-03-14T17:01:20Z
dc.date.issued2003
dc.identifier.urihttp://hdl.handle.net/10945/565
dc.description.abstractTotal Ownership Cost (TOC) is the current initiative to manage costs over the entire life cycle of a weapon system. There are several major categories of costs that contribute to Total Ownership Cost but the principal categories are (1) R&D, (2) Production, (3) Operating and Support, and (4) Disposal. System TOC is the same as Life Cycle Cost (LCC) and has implications for Cost As an Independent Variable (CAIV), cost-performance tradeoffs, affordability, and cost to achieve required operational availability. The Program Manager (PM) is responsible for developing and managing system TOC, with input from key stakeholders, such as the sponsor and users. This paper addresses incentives that can be employed to encourage life cycle cost perspective. It examines the critical issues associated with understanding and implementing the TOC concept and provides recommendations to assist PMs to knowledgeably execute a TOC plan. Metrics necessary to ensure appropriate implementation are explored. Various methods of controlling and reducing TOC are evaluated, including communication among stakeholders, CAIV documentation, tradeoff analysis, Reliability-Centered Maintenance (RCM); Performance-Based Logistics (PBL), Commercial Operations & Support Savings Initiative (COSSI), Earned Value Management System (EVMS), Activity-Based Costing (ABC), Value Engineering, and lessons from R-TOC Pilots.en_US
dc.format.extentvii, 96 p.: ill.;28 cm.en_US
dc.publisherMonterey, California. Naval Postgraduate Schoolen_US
dc.rightsApproved for public release, distribution unlimiteden_US
dc.titleReduction of total ownership costen_US
dc.typeReporten_US
dc.contributor.schoolGraduate School of Business & Public Policy (GSBPP)
dc.contributor.departmentGraduate School of Business & Public Policy (GSBPP)
dc.subject.authorLife cycle costingen_US
dc.subject.authorValue analysisen_US
dc.subject.authorProgram budgetingen_US
dc.identifier.oclcocm54763079
dc.identifier.npsreportNPS-GSBPP-03-004


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