Cost-Effectiveness Analysis: A Systems Engineering Perspective

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This book provides an overview of cost-effectiveness analysis, which is a well-known and intuitive method for defining and choosing among a set of alternatives. This book relates cost-effectiveness analysis to systems engineering to solve everyday problems at home and the office. It can also be used in technical processes, system design, and project management.

Cost-Effectiveness Analysis: A Systems Engineering Perspective starts with providing an overview and background of cost-effectiveness analysis and how it’s used. It then goes on to discuss cost-effectiveness concerning systems engineering and links its use to resolving military issues and problems. The book comes to an end with exploring the usage related to systems architecting, re-engineering office systems, and comparing its use to everyday life decision-making scenarios.

Targeted market includes general engineers, systems engineers, process engineers, project management, scientists, technologists, mathematicians, and lawyers.

Author(s): Howard Eisner
Publisher: CRC Press
Year: 2021

Language: English
Pages: 116
City: Boca Raton

Cover
Half Title
Title Page
Copyright Page
Dedication
Contents
Preface
Author
Books by the Author
1. WSEIAC, the Whiz Kids, and RAND
The WSEIAC Analysis and Report
Technical Reports
WSEIAC Recommendations
More about the Whiz Kids
How Much Is Enough?
Four Important Trends
New Processes
The WHIZ Kids - Some Last Words
The Research and Development (RAND) Project and Corporation
References
2. An Overview of the Basics
Shape of Ensemble of Prior Systems
Measures of Effectiveness (MOEs)
Effectiveness Measures
Evaluators (Commissioners)
Sample Cost Data
MOEs vs. Functional Decomposition
Sensitivities
Selection of Architectures vs. Selection of the Best System to Use
Absolute Values of Effectiveness Measures and Cost-Related Values
The Real Meaning of Cost Analysis [4]
The Bottom Line
References
3. Cost-Effectiveness and Systems Engineering
Overview
What Is Systems Engineering?
The SEBoK
Illustration of Cost-Effectiveness Approach to Architecting
Analysis of Alternatives (AoA) [6]
MITRE's Systems Engineering Guide
INCOSE Systems Engineering Handbook [11]
References
4. Selected Commentaries on Cost-Effectiveness
McNamara as a Transformative Leader [2]
A History of Cost-Effectiveness Analysis
A Critique of Cost-Effectiveness
Principles and Controversies [6]
The Overall Atmosphere in the OSD [7]
Selected Courses in Cost-Effectiveness
A Bottom Line for Cost-Effectiveness and Cost-Benefit Analyses
Open-ended Program Design and Analysis [10]
Another Look at Defining Alternatives
Computers
Telephones
Automobiles
Relationship between Cost-Effectiveness and Systems Engineering
References
5. Life Cycle Costing
General Categories of Cost
Subordinate Detailed Cost Elements
Other Cost Categories
Difficulties in Obtaining Real Cost Data [3]
Three Top Categories of Cost in Relation to Life Cycle Stages
NIST/GSA Building Handbook [5]
DoD Instruction 5000.73 - Cost Analysis Guidance [6]
DOD Budget Spending by Category [3]
References
6. Cost Estimating Relationships
Another Illustrative Life Cycle Cost - Line of Sight Microwave Communications
COCOMO
Linear Regression for CER Development [4]
Joint Agency CER Development [5]
Operating and Support Cost Estimating Guide [7]
MITRE's Cost Estimation Resources [8]
References
7. Cost-Effectiveness and Benefits
A Military Cost-benefit Analysis [4]
An Army Cost-Benefit Analysis to Support Army Enterprise Decision-Making [6]
Army Cost Analysis Manual, Dept. of the Army, U.S. Army Cost and Economic Analysis Center, May 2002 [7]
Cost-analysis Perspectives from the DAU [8]
Disposal Costs
References
8. Everyday Cost-Effectiveness
Functional Decomposition [1]
Cost-Effectiveness of Home Purchase/Build
Incremental Capabilities and Cost
References
9. Selected Military Examples
C-17 Example [2]
Cargo Aircraft - the Navy Cargo Case
The Joint Strike Fighter (F-35, JSF)
National Missile Defense [8]
Effectiveness in Space [10]
Cutting the Defense Budget [12]
A Note on Transparency
References
10. Miscellany
Risk Analysis
Business Case Assessment
Budgeting
Cost-Effectiveness and Warfighting
Warfighting
Fort Leavenworth Kansas: The Army War College
Intercity Transportation Example
Rational Choice Theory [8]
NASA: Systems Engineering and Cost-Effectiveness [9]
MITRE's Affordability, Efficiency, and Effectiveness [10]
From the Military, Affecting Budget [4]
References
11. Summary
Index