MANAGEMENT

a continuing literature survey

MARCH 1977

A76-10843 # Basic concepts of a progressive maintenance system. II (Grundlagen eines progressiven Instandhaltungssystems. II). A. Domokos (Magyar Legikozlekedesi Vallalat, Budapest, Hungary). Technisch-ökonomische Information der zivilen Luftfahrt, vol. 11, no. 4, 1975, p. 223-227. In German.

The paper examines general problems in the application of a computer for an aircraft repair and maintenance system. The computer would determine maintenance cycles on the basis of the type of defects encountered, past flying time, and expected future flying time. Considerations for coding of structural elements for minimum defect analysis time are discussed. Problems in schedule optimization are examined. P.T.H.

A76-11709

Analysis of human factors in aircraft accidents. P. J. Dean and R. F. Thatcher (Defence and Civil Institute of Environmental Medicine, Downsview, Ontario, Canada). (Joint Committee on Aviation Pathology, Symposium, Downsview, Ontario, Canada, Sept. 17-19, 1974.) Aviation, Space, and Environmental Medicine, vol. 46, Oct. 1975, p. 1260-1262.

Basic approaches used in the analysis of human factors are discussed and a description is given of two recent examples of studies which led to a new evaluation of the employed methods of analysis. In the operational analysis, possible factors which might have played a role in the accident are identified with the aid of a guide list of about 100 items. G.R.

A76-12498

The asset management approach to spares support. M. D. Basch (Federal Express Corp., Memphis, Tenn.). Logistics Spectrum, vol. 9, Fall 1975, p. 37-39, 42.

A program of asset management applicable to commercial aircraft spare parts support is discussed which achieves required service levels at reduced costs through integration of inventory, transportation, and warehousing. The program involves implementation of centralized back-up support, objective forecasting and planning, and a positive inventory control system. A practical model for determining the least costs sparing levels on a national or local basis is presented.

C.K.D.

A76-12827 • #
The advanced technology laboratory. C.
Llewellyn (NASA, Langley Research Center, Shuttle Experiment
Office, Hampton, Va.) and R. J. Milliken (Rockwell International
Corp., Space Div., Downey, Calif.). AAS, AIAA, IEEE, ORSA, and
IMS, Meeting on Space Shuttle Missions of the 80's, Denver, Colo.,
Aug. 26-28, 1975, AAS Paper 75-250. 21 p.

The Advanced Technology Laboratory (ATL) utilizes the Space Shuttle and the European Spacelab and is intended for advanced space technology. The evolution of the ATL concept is outlined along with its current status. Spacelab payload point design studies are reviewed as related to objective; physical layout; mission analysis; pointing accuracy; attitude management and fuel consumption; controls, displays, and data management; and thermal control. These studies aim at increasing the knowledge of the best techniques for integration and operation of payloads in the Spacelab and the Shuttle. ATL presents a dynamic new research potential, capable of accomodating 8 to 15 experiments per mission. S.D.

A76-13195 4 B-1 program management. P. R. Doty (USAF, Aeronautical Systems Div., Wright-Patterson AFB, Ohio). American Institute of Aeronautics and Astronautics, Aerodynamic Deceleration Systems Conference, 5th, Albuquerque, N. Mex., Nov. 17-19, 1975, Paper 75-1404.5 p.

In the fall of 1974, the Secretary of the Air Force announced his approval of a recommendation to change the mode of crew escape on the B-1 Weapon System from an integrated and separable crew module, to use of high technology ejection seats for individual crew members. The purpose of this paper is to present a management oriented overview of the basis for this announcement and to provide an understanding of the background of the B-1 development program, its current status, and planned future. Emphasis throughout is on the management aspects related to the initial selection of the crew escape system and factors which caused its major reorientation. (Author)

A76-13825

Design to Cost Conference, Palo Alto, Calif., June 2, 3, 1975 and Boston, Mass., June 19, 20, 1975, Abridged Proceedings. Conference sponsored by the American Institute of Aeronautics and Astronautics and Electronic Industries Association. Los Angeles, American Institute of Aeronautics and Astronautics, Inc., 1975. 94 p. $10.00.

Objectives of design to cost are (1) to establish cost as a parameter equal in importance with technical requirements and schedules throughout the design, development, production, and operation phases, and (2) to establish cost elements as management goals in achieving the best balance between life cycle cost, acceptable performance, and schedule. Papers contained herein describe efforts undertaken in the direction of the above objectives with specific aerospace and defense projects. Attention is given to cost reduction programs followed with the NAVSTAR global positioning system, the F-16 air combat fighter, the B-1 electronics countermeasures system, NASA operations, a lightweight Doppler navigation system, and inertial navigation system maintenance. T.M.

A76-14294 # New directions in automated spacecraft cost estimation. P. P. Pekar, Jr. (Estech, Inc., Chicago, Ill.), A. L.

Friedlander, and D. L. Roberts (Science Applications, Inc., Chicago, Ill.). Journal of Spacecraft and Rockets, vol. 12, Aug. 1975, p. 458-464. 10 refs.

This paper sets forth in summary form a financial analysis and cost modeling results obtained from examining eight unmanned lunar and planetary spacecraft programs. The paper differs from the popular method of estimating total project costs by forecasting dollars, and comes to the conclusion that cost forecasting can be improved by selecting manhours as the basic cost unit. To develop this theme, the authors analyzed nearly 5000 spacecraft cost elements spread across 327 prime and subcontracts. A nonrecurring and recurring cost model was then constructed. The results of this research along with comparative cost forecasts are reported. On the basis of the analysis, the following conclusions were deduced: (1) manpower is a homogeneous and standard unit across lunar/ planetary progress, (2) manpower has been found to be the cost driver in lunar and planetary programs, (3) manpower analysis provides management with more insight in analyzing estimated and on-going projects, and (4) the effect of learning and inheritance can be analyzed and measured better in terms of manpower. (Author)

A76-16779

Sampling inspection and replenishment of stocks in the case of stored equipment with deteriorating quality (Stichprobenprüfung und Lagerergänzung bei eingelagerten Geräten mit abnehmender Qualität). D. Oesterer. Wissenschaftliche Berichte AEG-Telefunken, vol. 48, no. 5, 1975, p. 213-217. In German.

The characteristics of the sampling procedure for the time of equipment storage are considered along with the strategies which are to be used after sampling. A mathematical description of two strategies is presented and the relative merits of the two strategies are discussed. Attention is given to the characteristics of the cost functions in the case of both strategies. G.R.

support (O&S) cost visibility; O&S cost-related thresholds; design trades to minimize life cycle costs; contract and other incentives to reduce O&S costs; and logistics alternatives. A sizable undertaking is required to extract O&S cost data from various diverse sources and information systems and to relate this to the weapon systems supported according to well-defined cost elements. A specific example of O&S cost-related parameters established as thresholds is provided. It is essential that the early establishment of O&S cost-related thresholds be supported by design analyses and tradeoffs. Several approaches are discussed which aim at encouraging the contractor to assign top talent to initially design reliability and low support costs into a weapon system. Major conclusion is to reduce the out-year O&S cost budget by emphasis during the development and procurement phase of the design and support concept decisions which have the principal O&S cost impacts. S.D.

A76-18067

Source selection and contracting approach to life cycle cost management. J. W. Stansberry (U.S. Department of Defense, Office of the Secretary of Defense, Washington, D.C.). Defense Management Journal, vol. 12, Jan. 1976, p. 19-22.

Examination of a few examples shows that life cycle costing (LCC) must be considered early in the system acquisition process in order to avoid unnecessary expenditures for support costs. LCC must be introduced into the contractual process in all three phases: conceptual formulation/validation, full-scale development, and production. A discussion of LCC and source selection indicates that contracts must contain clauses specifically addressing LCC, ensuring that contractor efforts result in adequate LCC estimates prior to full-scale development. An additional contracting technique for encouraging contractors to design equipment with optimal life cycle costs is the reliability improvement warranty supported by monetary incentives. The production phase as the crucial phase for LCC is discussed on the examples of an aircraft and a radio. Recommendations on the application of the LCC concept are formulated, with provision for flexibility in design to cost goals so that appropriate adjustment can be made in order to reduce ownership S.D.

cost.

A76-16846 # Fuel management model. J. W. Stroup and W. J. Lackey (Douglas Aircraft Co., Long Beach, Calif.). Operations Research Society of America and Institute of Management Sciences, Joint National Meeting, Las Vegas, Nev., Nov. 17-19, 1975, Paper. 8 p.

This paper discusses the Fuel Management Model, a means of providing information to (1) assess fuel requirements by station for future aircraft schedules, (2) reduce fuel costs or consumption through efficient aircraft fueling policy, and (3) provide an airline with valuable inputs to negotiations with suppliers. Fuel'shortages or different unit prices at different stations may require tankering (carrying more fuel than required on a flight leg) in order to minimize fuel costs or cope with fuel shortages. The fuel management model indicates where tankering is desirable or needed and incorporates these operations into the fueling policy. When fuel shortages occur it becomes important to consider a total fueling policy based on an entire flight schedule so that the competing demands from many flights can be resolved in the most efficient manner. The fuel management model is capable of providing such a policy based on the simultaneous consideration of fuel requirements of a large number of flights and supply limitations by station and supplier. (Author)

A76-18068

Warranties as a life cycle cost management tool. C. R. Knight (ARINC Research Corp., Annapolis, Md.). Defense Management Journal, vol. 12, Jan. 1976, p. 23-28.

Warranties can provide significant benefits whenever their use is suitable to the type of military procurement. Reliability and maintainability of the equipment supported depend largely on contractor effort during design, development, and production of the equipment. A graph of reliability versus initial cost is presented which indicates an increasing cost associated with higher reliability. The basic problems with which the government customer is faced are discussed. The burden for a major portion of life cycle costs is placed on the manufacturer who must concern himself with both initial cost and support cost, in which case the cost curve of interest to the contractor is the total cost. Total cost responsability speculates that imposition of warranty provides the proper motivation - shared by buyer and seller for reduced total costs. Misgivings expressed by equipment users and producers are discussed along with the supplier's risk in warranty pricing. Further investigation is needed to evaluate the full potential of warranties and their range of applicabilities as a cost-management technique. S.D.

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A76-18066

Managing downstream weapons acquisition costs. R. R. Shorey (U.S. Department of Defense, Office of the Secretary of Defense, Washington, D.C.). Defense Management Journal, vol. 12, Jan. 1976, p. 10-18.

The paper analyzes the key elements for structuring an approach to managing downstream weapons acquisition costs: operating and

A76-18069

Designing for life cycle cost. W. H. Boden (Magnavox Co., Fort Wayne, Ind.). Defense Management Journal, vol. 12, Jan. 1976, p. 29-37.

Life cycle cost (LCC) is referred to as the total cost of acquiring the product, establishing the necessary logistics base from which to deploy and use the product, and maintaining the product in operable condition over some prescribed period of time. A system of negative