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Using the steel-vessel material-cost index to mitigate shipbuilder risk [electronic resource] / Edward G. Keating ... [et al.].

Contributor(s): Keating, Edward G. (Edward Geoffrey), 1965- | United States. Department of Defense. Office of the Secretary of Defense | National Defense Research Institute (U.S.).
Material type: TextTextSeries: Technical report (Rand Corporation): TR-520-NAVY.Publisher: Santa Monica : Rand Corp., 2008Description: 1 online resource (xiii, 15 p.) : ill.ISBN: 9780833046031 (electronic bk.); 0833046039 (electronic bk.).Report number: TR-520-NAVYSubject(s): Shipbuilding -- Costs | Shipbuilding -- Materials | Ships, Iron and steel | BUSINESS & ECONOMICS -- Industries -- ServiceGenre/Form: Electronic books.Additional physical formats: Using the steel-vessel material-cost index to mitigate shipbuilder risk.DDC classification: 338.4/762382 Online resources: EBSCOhost
Contents:
How the Navy Uses Labor- and Material-Cost Indexes -- A Very Simple Example -- A more Realistic Example -- Steel-Vessel Index -- Conclusions -- APPENDIX: Time-Phasing Material- and Labor-Cost Indexes -- Revisiting a Very Simple Example -- Revisiting a More Realistic Example.
Summary: The more accurately a cost index captures a shipbuilder's risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders' control. A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile. The authors urge the Navy to develop a modern-vessel index that more appropriately represents the materials used today.
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"Prepared for the Office of the Secretary of Defense."

"RAND National Defense Research Institute."

Includes bibliographical references (p. 15).

How the Navy Uses Labor- and Material-Cost Indexes -- A Very Simple Example -- A more Realistic Example -- Steel-Vessel Index -- Conclusions -- APPENDIX: Time-Phasing Material- and Labor-Cost Indexes -- Revisiting a Very Simple Example -- Revisiting a More Realistic Example.

The more accurately a cost index captures a shipbuilder's risk, the less the Navy should have to pay its shipbuilders. The Navy uses such indexes to correct for significant cost risks outside its shipbuilders' control. A longtime material-cost index in Navy shipbuilding is the steel-vessel index, but it is outdated and volatile. The authors urge the Navy to develop a modern-vessel index that more appropriately represents the materials used today.

Description based on print version record.

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