Why Affordability Is A Systems Engineering Metric

Abstract

The Systems Engineering approach to Affordability is equal to CAIV + LCC + TOC + Systems Effectiveness. The purpose of this presentation is to apprise the Systems Engineering community of Affordability as a critical metric in the total organization. Affordability will be defined in terms of the most “bang” for the available bucks from the Government and commercial perspectives. Illustrations of how the design process can affect the affordability and determine the “profit” and maximize sales. The flow of Affordability will define at a top level the definition of Cost As an Independent Variable (CAIV) with program examples and real life scenarios. Affordability is dependent on mission requirements, i.e. quantity, performance, supportability. Life Cycle Cost (LCC) will be defined at a top level and include the elements of LCC with the appropriate process of “How an LCC is developed” along with the customer requirements and models to support. Total Ownership Cost (TOC) is defined and illustrations of various TOC's will be provided at a top level. Systems Effectiveness will be discussed as mission utilities that are inherent in the Systems Engineering processes. Additionally, there is discussion of IPT responsibility, when this process is implemented and other Economic Analysis aspects pertinent to the Affordability Program.