SHOULD A PRODUCTION RATE VARIABLE BE INCLUDED IN MILITARY AIRCRAFT LEARNING CURVES? EMPIRICAL EVIDENCE FROM THE UNITED STATES AIR FORCE

Learning curves are a core analytical method employed by cost analysts to estimate weapon system production costs. This study examines United States Air Force aircraft programs and compares the traditional (e.g., Unit Theory) learning curve model to a production rate learning curve model. While ther...

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Bibliographic Details
Published in:	Journal of defense resources management Vol. 14; no. 2; pp. 45 - 56
Main Authors:	Ahern, Caleb J, Ritschel, Jonathan D, White, Edward D, Lucas, Brandon M, Fass, Robert D, Valentine, Shawn M
Format:	Journal Article
Language:	English
Published:	Bucharest Regional Department of Defense Resources Management Studies 01-10-2023 "Carol I" National Defence University
Subjects:	Accountability Air forces Bank examinations Bank examiners Business Economy / Management Cost analysis Cost estimates cost estimating cost modeling Cost reduction Datasets Defense defense budgets Defense industry Economies of scale Education Empirical analysis General Reference Works learning curve Learning curves Manufacturing costs Military aircraft Military aspects Production costs production rate resource allocation Weapon systems United States > US cost estimating cost modeling defense budgets resource allocation production rate learning curve
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Summary:	Learning curves are a core analytical method employed by cost analysts to estimate weapon system production costs. This study examines United States Air Force aircraft programs and compares the traditional (e.g., Unit Theory) learning curve model to a production rate learning curve model. While there are some previous studies examining production rate models, one novelty of this research is the size of the dataset, which comprises the largest military examination to date. The results suggest the production rate model outperforms the traditional learning curve model. Additionally, the analysis identifies the post-Initial Operational Capability (IOC) time period as the preferred milestone in the life cycle to employ the production rate model.
ISSN:	2068-9403 2247-6466