A Cost Control methodology designed to apply for defense acquisition of South Korea.
Management & Lessons Learned Track
Defense system as a long lead program has the high probability of cost growth due to the uncertainty and risk. Therefore, meeting schedule, technical performance and preventing excessive cost overrun is the main concerning point to success defense program. CAIV, Cost as An Independent Variable, is taking shape in Department of Defense Acquisition of USA. The policy to adapt CAIV is to place more emphasis on cost control. The goal of CAIV is to shift the paradigm from “more performance is better” to “an affordable balance between cost and performance is better.” The primary goal of CAIV is to place more emphasis on cost control while ensuring the true needs of the weapon system are being met. Once a program’s initial cost, schedule, and system performance trade-offs are complete and baselines are set, cost becomes a more significant driver in changing the baseline.
This paper serves to provide a cost control methodology designed to apply CAIV to defense acquisition of South Korea.
Kyu Meyung Choi
Kyumeyung, Choi is a CEO of Prigent Corporation of South Korea. He holds a Doctor of Statistics from Chungnam National University, a Master of Industrial Engineering from Hanyang University and Bachelor of Industrial Engineering from Hanyang University. Previously, he joined the researcher of Agency for Defense Development of South Korea. He consulted the cost estimating for the KHP program management office. he was the researcher and cost analyst of Agency for Defense Development of South Korea.
Jongyoul, On is a chief executive consultant and involved in supporting cost estimating activities at Prigent Corporation of South Korea since 2003. He holds a Doctor of Electronic Engineering from Chonbuk National University and a Master of Electronic Engineering from the University. Previously, he consulted the cost estimating for the KHP program management office. He was the cost analyst for Analysis and Evaluation Bureau in Korean Army Headquarters.