When Good CAIV Programs go Bad: Extending CAIV Effectiveness Through Cost Interoperability
Jasnoff, Z
PRICE Systems

While the Cost as an Independent Variable (CAIV) methodology is used to optimize performance and cost, many CAIV based programs entering System Development and Demonstration (SDD) continue to face significant cost pressures, overruns and cancellations. Most notably is the Littoral Combat Ship which started out as a strictly mandated CAIV program, but resulted in program cancellations for both Lockheed-Martin and General Dynamics. Once programs such as LCS enter final design, automated linkages between CAD systems and parametric cost models are needed to give engineers early and continuing feedback on CAIV target objectives.

Without these linkages, it is difficult for engineers to understand the cost impacts associated with detail design thus CAIV targets are easily exceeded. At the program level, automated linkages give Business Managers a complete view of the program before problems arise. For CAIV to remain effective across all program phases, it must be integrated with engineering tools to avoid a "disconnect" between final design and CAIV targets. Extending CAIV through integrating cost models with engineering design tools gives engineers, project and business managers insight into achieving affordability goals

This presentation discusses why CAIV programs fail and how interoperability between engineering tools, cost models and CAIV targets are needed to jointly understand the impact of design on cost in real time - and quickly evaluate alternatives. We will explore how new tools such as PRICE System's Affordability Companion for Pro/E, augments existing CAIV methodologies and allows complete affordability simulation during the design phase. We will demonstrate how engineering models in Pro/E can be passed seamlessly to the TruePlanning model for cost evaluation with results returned directly to the engineer for CAIV evaluation. We will also highlight the new True Manufacturing catalog for the TruePlanning model that works directly with parameters from Mechanically Aided Design tools (MCAD).