Case Study

PRICE Systems’ CAIV and Total Ownership Cost (TOC) Approach Drives Affordable Designs

PRICE Systems’ CAIV and Total Ownership Cost (TOC) Approach Drives Affordable Designs

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Affordable Designs through PRICE Systems’ CAIV and Total Ownership Cost Approach This program presented a challenging idea - have the total lifetime cost of a to-be- designed artillery system constrain decisions from the very start of development. Though it has been said many times in the past, few programs ever really undertake the challenge, leaving life cycle cost hostage to whatever has been designed. Not this project. An active CAIV program began the first day of design, even though it would be 12 plus years until deployment of the first production article. PRICE H is the costing tool that measures the acquisition cost of the system. It is driven by an interface to the design engineering process so that alternatives are reflected in variations to the cost driving parameters.

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