Military Handbook- Design to Cost (1989)

Keywords design to cost military handbook

3.3 Affordability

Affordability is a function of cost, priority and availability of fiscal and manpower resources, and is to be considered at every milestone, and during the Planning, Programming, and Budgeting Execution System (PPBES). The order of magnitude of resources of the DoD Components is willing to commit, and the relative priority of the program to satisfy the need identified in the Mission Needs Statement (MNS), formerly the Justification for Major System New Start (JMSNS), will be reconciled with overall capabilities, priorities, and resources in the PBBES. System planning shall be based on adequate funding of program cost.

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Affordable and cost effective weapon systems are achieved by optimally balancing cost, performance, schedule, and supportability goals. By highlighting acquisition and operations and support (O&S) cost goals during the design process, the program manager can expect a design configuration that meets started cost goals while fulfilling performance, supportability, and schedule requirements. Design To Cost (DTC) is one of many management tools used to achieve these results. It has been used by the Department of Defense since 1971 and by private industry long before that.

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