CHAPTER10

Cost as an Independent Variable: Front-End Approaches to Achieve Reduction in Total Ownership Cost

By Michael W. Boudreau

BACKGROUND

During the latter half of the 1980s and throughout much of the 1990s, budget constraints were increasingly tight, resulting in Department of Defense budget reductions (measured in constant dollars) that commenced in FY 1986 and extended through FY 1997—the only increase being FY 1991, corresponding to Operation Desert Storm.1 In an attempt to squeeze every penny from required resources, DoD leaders emphasized the necessity of controlling costs of new warfighting systems—not only the cost of development and production, but also the cost of sustainment. In 1995 Dr. Paul Kaminski, the Under Secretary of ...

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