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Military Jet Engine Acquisition Technology Basics and Cost-Estimating Methodology

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Military Jet Engine Acquisition Technology Basics and Cost-Estimating Methodology ( military-jet-engine-acquisition-technology-basics-and-cost-e )

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82 Military Jet Engine Acquisition Development Cost—New Engine Development Cost— Derivative Development Time Production Cost—T1 Production Cost—T375 Table 6.10 Summary of Parametric Relationships lnrd01m = –24.429 + 4.027 lnritf (7.97) lnrd01m = –39.422 + 5.066 lnritf – 1.299 lnsfc + 0.582 lnfsth (4.45) (–3.89) (5.32) lndtimem = –0.243 + 0.425 neweng + 1.151 lnopr (2.88) (3.58) lnT1 = –10.40 – 8.550 lnslope + 0.482 ab + 1.162 lnritf + 0.261 lndrywt (–13.02) (4.60) (3.63) lnT375 = –10.40 + 1.162 lnritf + 0.482 ab + 0.262 lndrywt (3.74) (4.89) (2.55) (2.42) lnrd01m = natural log of the development cost in 2001 $millions. lnritf = natural log of the rotor inlet temperature in degrees Fahrenheit. lnsfc = natural log of the specific fuel consumption (lb/hour/lb). lnfsth = natural log of full-scale test hours. lndtimem = natural log of the development time in months (from contract award to low-rate production release; for older engines, the finish date corresponds to the MQT date). neweng = a binary variable (1 or 0). It is true (1) when the engine is the first production engine of a family, incorporates advanced technology, or is a new centerline design. Otherwise, the variable is false (0). lnopr = natural log of the overall pressure ratio. lnT1 = natural log of the production price for unit number 1 in 2001 $millions. lnslope = natural log of the cost improvement curve slope. ab = binary variable. It is (1) if the engine is an afterburning engine and (0) if it is not. lndrywt = natural log of the dry weight for the engine in pounds; lnT375 = natural log of the production price for unit number 375 in 2001 $millions. Using the CERs in Table 6.10, which summarized all the parametric relations presented in this chapter, in conjunction with the informa- tion provided in Table 6.11 yields the results shown in Table 6.12 for the two notional engine examples. Table 6.12 shows that the development cost, development time, and the unit cost of the new engine design are significantly higher than the development cost, development time, and the unit cost of a derivative engine using evolutionary technologies. However, these costs must be weighed against performance gains, such as increased range, speed, maneuverability, and fuel efficiency, decreased overall

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