Which process evaluates potential cost savings in a program, such as a target reduction in life cycle cost?

Which process evaluates potential cost savings in a program, such as a target reduction in life cycle cost?

• A. IOT&E
• B. Change Order
• C. Affordability Analysis
• D. Gantt Chart

Answer: (C)

The key idea is assessing whether a program can be made affordable by examining costs across the entire life of the system and identifying savings opportunities. Affordability analysis specifically targets cost reduction within the funding and time constraints of a program. It looks at life cycle cost—developing, producing, operating, maintaining, and disposing of the system—and asks how those costs can be reduced, for example by changing design choices, production rates, support concepts, or delivery schedules, to meet a target reduction in total ownership cost. This makes it the best fit for evaluating potential cost savings and feasible cost targets. IOT&E focuses on testing and evaluating performance and suitability, not on cost-savings targets. A Change Order adjusts scope or price after the fact, rather than proactively analyzing affordability. A Gantt Chart is a scheduling tool used to plan tasks and timelines, not to assess cost reductions across the life cycle.

The key idea is assessing whether a program can be made affordable by examining costs across the entire life of the system and identifying savings opportunities. Affordability analysis specifically targets cost reduction within the funding and time constraints of a program. It looks at life cycle cost—developing, producing, operating, maintaining, and disposing of the system—and asks how those costs can be reduced, for example by changing design choices, production rates, support concepts, or delivery schedules, to meet a target reduction in total ownership cost. This makes it the best fit for evaluating potential cost savings and feasible cost targets.

IOT&E focuses on testing and evaluating performance and suitability, not on cost-savings targets. A Change Order adjusts scope or price after the fact, rather than proactively analyzing affordability. A Gantt Chart is a scheduling tool used to plan tasks and timelines, not to assess cost reductions across the life cycle.