3.1.2 Architecting the Raytheon Production Cost Model

Abstract

AbstractThe Advanced Systems Economic Analysis (ASEA) Department in Systems Engineering at Raytheon Missile Systems (RMS) was presented with the challenge to develop a software tool to track and report costs on production programs. This challenge was driven by the Guided Projectile product line, which had an immediate need to provide production cost projections for three similar programs. The goal for the tool was to track and manage costs to meet the Design to Cost (DTC) goal for each production program. The tool tracks the recurring system costs and accumulates the cost of components in a hierarchy which allows each model user to derive the necessary information needed to manage their own program's cost.RMS Information Technology (IT), in conjunction with ASEA, developed the Raytheon Multi‐Program Production Cost Model (RPCM). This cost model provides Raytheon with a cost tool that can provide management and control cost, thus aiding the company goal of providing quality products at the least cost. Cost data is presented to developers and managers in a form that allows them to make decisions in a timely manner. With this cost tool, they are able to understand projections of cost for baseline programs, and evaluate design changes, preplanned product improvements, productivity improvements, changes to business practices, and other factors which impact production costs. This tool is different from all currently available COTS tools is the ability to track costs and take advantage of commonality across all production programs.