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

Full Text URL: http://acquisitionresearch.net/files/FY2011/NPS-AM-11-C8P18R01-063.pdf

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

Abstract:

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