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Revision B, August 2015

Complete Document

Unit Production Cost Tracking Model UPCT 6

Includes all amendments and changes through Stabilization Notice (No longer revised / updated) , August 2015

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Active, Most Current

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Product Details:

  • Revision: Revision B, August 2015
  • Published Date: August 2015
  • Status: Active, Most Current
  • Document Language: English
  • Published By: SAE International (SAE)
  • Page Count: 61
  • ANSI Approved: No
  • DoD Adopted: No

Description / Abstract:


This userguide contains a description of the Unit Production Cost Tracking Model for use in design tradeoffs and control and  Design-to-Cost program. This model is designed to compare two Cost Breakdwon Structures (CBS) to show elemental and summary cost differences. The two Cost Breakdwon Structures may represent design alternatives, or a target allocation and the current design approach for comparison.

Serveral features of the model make it especially useful for its purposes:

o It makes a search to assure comparison of identical Cost Breakdown Structure (CBS) element identifiers. This assures comparison of comparable elements, even if elements are added to or deleted from one alternative.

o Analysis can be restricted to a subset of the CBS for a tradeoff not affecting other parts of the CBS.

o Reporting level of detail can be limited for summary purposes.

o Costs are separated by processes, which may be identified as material and labor of various classes,or various accounts. Process sums are developed In addition to and within those of equipment elements.

o Labor costs may be carried in terms of man-hours or other time elements, and labor rates and burden rates assigned by process. Material costs may be burdened by assigned Material Handling Expense burden rates.

o Learning factors may be assigned to processes to ease estimation of unit costs for various production quantities, and for various elemental cost basis quantities. These computations are accurate over a broad range of intended production quantities.

o The use of escalation or inflation factors enables reporting costs on any common time basis, and allows combining elemental cost estimates developed at various points in the development cycle.

Reports have been designed to be effective in the analytical, control and reporting aspects of a DTC program.

oo A Status Report limits the level of detail as desired, for reporting status to management or the customer. It may be limited to a branch of the CBS for tradeoff purposes. An accompanying graph shows historical changes In DTC performance.

oo A Problem Analysis Report is issued for corrective action when a design element or process exceeds its allocated goal.

The Design-to-Cost process requires establishment of Design-to-Cost goals, to which equipments are to be designed and their costs controlled. The designs must be reviewed periodically to evaluate their conformance with the established goals. The design process is controlled by goal allocation to designers and assistance in evaluation of their design alternativws. The mere existence of a cost goal lends incentive to designers to address the goal. When progress against the goal Is monitored and reported, this incentive is increased. When the designer is required to explain a variance from the goal and his proposed solution, his attention to cost is encouraged.

Usual requirements on Defense Design-to-Cost contracts Include periodic reports of performance against a Unit-Production-Cost goal, to three or more levels of Cost Breakdown Structure (CBS). These are used to satisfy Government directives for monitoring Design-to-Cost contracts
AIA/NAS Aerospace Standards