SYSTEM COST ANALYSIS

DECISION MAKERS IN TODAY'S HIGHLY TECHNICAL INDUSTRIES HAVE MANY RESPONSIBILITIES DURING THE DESIGN, DEVELOPMENT, AND IMPLEMENTATION OF NEW COMPLEX SYSTEMS. ONE OF THESE IS THE EFFICIENT ALLOCATION OF FUNDS DURING THE EARLY STAGES OF SYSTEM PLANNING. CAN THESE FINANCIAL DECISIONS BE BASED ON TWO FUNDAMENTAL COSTS? THE PURPOSE OF THIS PAPER IS TO GIVE THE DECISION MAKER A BASIC COST MODEL WHICH CAN BE USED AS A STARTING POINT IN SYSTEM COST EVALUATION. THIS MODEL IS COMPOSED OF TWO COSTS, ONE FOR DESIGN AND DEVELOPMENT CALLED 'INITIAL COST' AND THE OTHER FOR SYSTEM SUPPORT AND MAINTENANCE CALLED 'SUPPORT COST'. THERE ARE MANY COMPLEX AND IMPORTANT DECISIONS THAT MUST BE MADE DURING THE DEVELOPMENT OF A SYSTEM. BY HAVING A SIMPLE STARTING POINT, THE DECISION MAKER'S DETERMINATIONS MAY BE EASIER TO MAKE. THE STRAIGHTFORWARD COST EQUATIONS PRESENTED HERE WILL AT LEAST GIVE HIM A TANGIBLE DEVICE FOR GUIDANCE. /AUTHOR/

  • Supplemental Notes:
    • Vol 4, pp 13-26
  • Corporate Authors:

    N/A

    ,   United States 
  • Authors:
    • Wortham, A W
    • Gibson, R G
  • Publication Date: 1968-5

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00201621
  • Record Type: Publication
  • Source Agency: Traffic Systems Reviews & Abstracts
  • Files: TRIS
  • Created Date: May 5 2003 12:00AM