Realities of Cost As an Independent Variable (CAIV) – Stakeholder Perceptions
Management & Lessons Learned Track
Cost As an Independent Variable (CAIV) has been shown to be an effective tool to identify and mitigate program risk by balancing effectiveness and affordability. CAIV establishes goals and provides cost feedback to development teams as requirements change and design details emerge. However, depending on the project phase (Concept, Technology Development, SD&D, Production and Operating & Support) and the level of stakeholder support (both customer and contractor), there is great variability in the level and scope of CAIV application and investment in cost analysis capability. A survey of both government and industry stakeholders was conducted to assess the level of CAIV application in the real world. This paper presents the results of our survey and the perceptions of the various stakeholders as to why CAIV application may have been limited.
Greg Kiviat is Manager of the Engineering Affordability Analysis group at Sikorsky Aircraft and is responsible for preparing Life Cycle Cost, proposal and ad hoc estimates for new helicopter programs. Mr. Kiviat’s group also provides support to Purchasing, Finance and other organizations with “should cost” analysis to validate “bottoms up” and supplier quotes used for proposal activity. In addition the team estimates, tracks and provides cost guidance to Program Managers and IPTs to meet Unit and Supportability cost goals for U.S. government, international and commercial sponsored development programs.
Mr. Kiviat began his career as an Operations Engineer for Pan American World Airways in 1979 developing aircraft performance charts and guidance, weight and balance tracking, and new market analysis. In 1982 he joined Sikorsky Aircraft’s New Product Development group where he received training in parametric methods and provided engineering and proposals with performance and cost analysis. From 1990 to 2001 Mr. Kiviat worked as a business systems consultant for AT&T, Lucent, Avaya and Cisco Systems developing requirements and implementing business Information Technology solutions. Mr. Kiviat returned to Sikorsky in 2001 to manage the Design to Cost (DTC) effort for the RAH-66 Comanche program.
Recent assignments include CH-53K (HLR) cost analysis, Joint Heavy Lift (JHL) Life Cycle Cost studies, VXX Presidential Aircraft Competition and Australian Air 9000. He has also provided significant support with process development and parametric tools to Sikorsky’s Proposal Center of Excellence to improve the proposal cost estimating at Sikorsky.
1975 – Bachelor of Science, Aero & Astro Engineering, New York University
1977 – Master of Science, Applied Science, New York University 1979 – Master of Business Admin, Finance, New York University 1998 – Certificate, Information Mgmt, Fairleigh Dickinson University
2004 – Certificate, Systems Engineering, Massachusetts Inst of Technology
International Society of Parametric Analysts
Stuart is currently the manager of Pratt & Whitney Rocketdyne’s Engineering Estimating group at Canoga Park. Stuart began his career in the Peackeeper Stage IV Pressurization System Development group, coming to Rocketdyne (then part of Rockwell Aerospace) in 1980 directly from college. The engineering part of Stuart’s career includes development and project engineering roles on Peacekeeper Stage IV, Kinetic Energy Weapons programs, Advanced Propulsion Projects, and the RS-68 booster engine. His work in Advanced Programs supported various projects focusing on low cost development approaches, which lead to the RS-68 rocket engine used on Delta IV. Mr. Swalgen was the Project Engineer/Systems Engineering lead for initial phase of RS-68 program and supported much of the program definition, proposal, and initial development activities; evolving to lead the Life Cycle Cost activities through 1998. He then lead Rocketdyne’s Engineering Estimating efforts to develop improved databases, tools, and methods to support estimating of engineering costs and content for proposals. Currently, his group supports most new business proposals with historical cost and labor data, cost estimating relationships, and analysis; as well as BOE and other support. Since forming his current group in 2000, Stuart has worked to build a greater partnership between the Finance & Engineering organizations.
1980 – Polytechnic Institute of New York, BS in Aerospace Engineering. 1982 – Certificate in Project Management. West Coast University.
International Society of Parametric Analysis American Institute of Aeronautics and Astronautics Institute for the Advancement of Engineering National Contract Management Association National Management Association
Mr. Botta has been actively involved with parametric analysis at Sikorsky Aircraft for over 30 years. He has designed a complete parametric Life Cycle Cost estimating program for helicopter flight vehicles, which in conjunction with the Helicopter Design Model (HDM), enables rapid, cost-effective design solutions, and a Total Ownership Cost (TOC) Model which is heavily used at Sikorsky Aircraft, most recently on a preliminary design study for a heavy lift requirement for the French and German governments. He has also managed several contracts with the U.S. Army to develop parametric methodology for assessing the ballistic vulnerability of helicopter systems.
Mr. Botta is currently Principal Engineer, Affordability Analysis, in the Systems Engineering department. Mr. Botta is the focal point for the PRICE System at Sikorsky and is responsible for preparing preliminary risk and cost estimates for new projects, training user organizations within the company, and educating the customer to insure the acceptance of PRICE as a viable cost estimating procedure.
Mr. Botta is an active member of the International Society of Parametric Analysts (ISPA) and served as their Treasurer from 1981 through 1995.
During his tenure as ISPA Treasurer, Mr. Botta organized the financial records of the Society since its inception, provided the necessary financial information to secure the tax-free status of the Society, completely automated the accounting process to provide more timely information, and oversaw the first independent audit of the Society’s records by a Certified Public Accountant. For his outstanding efforts in supporting the Society, Mr. Botta received the ISPA Service Award in July 1988 and again in June 1995.
1973 – Bachelor of Science, cum laude, in Aeronautical Engineering, New York University
1975 – Master of Business Administration, with distinction, in Management, New York University
The International Society of Parametric Analysis