Costing Complex Products, Operations, and Support

Report Number: NPS-AM-11-C8P18R01-063

Series: Acquisition Management

Category: Costing

Report Series: Proceedings Paper

Authors: Michael Pryce

Title: Costing Complex Products, Operations, and Support

Published: 2011-04-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

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Keywords: Complex Products, CoPS, Major Capital Coods, Operations and Support Cost, Parts Count


Complex products and systems (CoPS), such as large defense equipment programs, are major capital goods in which customers play a central role from design through disposal (Davies & Hobday, 2005). A central idea of the research that this paper reports on is that the degree of complexity in CoPS may have a significant effect on the range of possible variance of their operations and support (O&S) costs. However, operational use and other factors also have an important part to play in the complexity of CoPS, which simple