Implementation of cost as an independent variable : an AIM-9X case study

Abstract

This research is a single case study of the implementation of Department of Defense (DoD) Cost as an Independent Variable (CAIV) into the AIM-9X Sidewinder air to air missile program to determine if CAIV has the attributes of a strategic management control system. Environmental forces, budgetary pressures, modernization requirements, and military performance requirements have imposed upon DoD a need to change the way it conducts business, and implement an affordable, best value acquisition strategy through implementation of policies such as CAIV. However, there does not exist a managerial framework to assist the program manager in how to implement CAIV. There exist too many definitions of CAIV and priorities differ about what is the most important CAIV objective. This research uses DoD publications, memorandums, Internet websites, and published academic books and papers to review CAIV objectives, and the use of management control systems in commercial industry and DoD. After studying how the AIM-9X program implemented CAIV, this thesis analyzes and discusses CAW in terms of a strategic management control system. when control is used in the sense of implementing strategy, CAIV has the attributes of a strategic management control system. CAIV has the capability to control individual behavior and incentives that lead to decisions affecting higher costs. Viewing CAIV in this managerial framework may assist DoD in implementing its affordability strategy