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Economics of Test and Repair in Both the Factory and Depot

White Papers

When it comes to understanding the Cost of Test, we all tend to start philosophizing on the multitude of factors that must go into such an equation. In fact, the Office of the Secretary of Defense, Cost Analysis Improvement Group took over 149 pages to layout all the attributes and assumptions in 19921. This paper explores a different way of approaching the problem. Instead of developing algorithms and defining attributes bottoms-up for every and all factors of a test strategy, this approach looks at a top down methodology. Taking a systems view of the process, and associated costs of test, a minimum set of data and related cost are all that are needed to get a 90% understanding of the cost of test. More importantly, these models can show gaps in strategies and leverage areas for eliminating test and process steps and thus associated costs.

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