Cost-Effectiveness as a Method of Evaluating Design Changes

Abstract

A procedure is outlined for utilizing cost-effectiveness as a measure of the economic feasibility of making design changes. The method is pertinent to those design changes with significant influence on performance and reliability of the weapon system, on over-all weapon system effectiveness, and on the total cost of the weapon system. Similarities exist between the evaluation of decisions in the area of weapon systems design and decision areas commonly encountered in the nonmilitary business world. The effect of alternative product designs on potential market penetration, production processes and profits, for example, could be described by either analytical techniques or simulated by ``business gaming,'' or both.