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A Dynamic Cost Function for an Airframe Production Program

"A Dynamic Cost Function for an Airframe Production Program," Engineering Costs and Production Economics, Vol. 7 (1983), 213-27 (with N.K. Womer). This research represents an extension of previous work in the area of estimating military airframe program costs. The effort is unique in that it yields a model of the production process that considers the impact of learning, production rate, and (implicitly) facility size on total program costs. To provide an empirical test of model validity the parameters are estimated for the C141 airframe program. The model's use as a prototype for models of ongoing production programs is illustrated by estimating the cost impact of exogenous changes in the program delivery schedules, e.g. the “crashes” and “strech-outs” that frequently characterize military airframe production programs.
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