NPFC - MIL-HDBK-766
DESIGN TO COST
| Organization: | NPFC |
| Publication Date: | 25 August 1989 |
| Status: | inactive |
| Page Count: | 51 |
scope:
Affordable and cost effective weapon systems are achieved by optimally balancing cost, performance, schedule, and supportability goals. By highlighting acquisition and operations and support (O&S) cost goals during the design process, the program manager can expect a design configuration that meets stated cost goals while fulfilling performance, supportability, and schedule requirements. Design to Cost (DTC) is one of many management tools used to achieve these results. It has been used by the Department of Defense since 1971 and by private industry long before that.
The success of any cost control effort depends primarily on management's support. The Government and contractor program managers (PMs) should control cost in the same way other design parameters are controlled (i.e., with a high visibility management system based on in-depth analytical procedures that identify and describe the relevant cost elements). Organization at all levels must treat cost as a fundamental responsibility to be addressed on a continuing basis during research, development, test, evaluation, production and deployment. This emphasis involves early establishment of realistic cost goals in all development phases followed by an integrated effort to achieve them.
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