Production Rate and Production Cost
An investigation of the effect of production rate on the cost of selected types of military hardware. A statistical analysis of a sample of military aircraft airframes suggests that the influence of production rate on engineering, tooling, and manufacturing man-hours is often indiscernible. The one element of cost which is clearly a function of production rate — to the extent that production rate impacts on total volume of business — is overhead. It is concluded, however, that the influence of production rate on cost cannot be predicted with confidence on the basis of the analyses performed; each case must be examined separately. In advanced planning studies, rate effects in aircraft programs can be ignored because they are far outweighed by other uncertainties in cost predictions for future military hardware.