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Social SciencesEconomics and Cost Analysis

Institutionalization of Reduction of Total Ownership Costs (R-TOC) Principles. Part 1: Lessons Learned from Special Interest Programs

Authors: Jay Mandelbaum; Anthony C. Hermes; Danny L. Reed; Richard O. Roemer; INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA
Abstract:
The Reduction of Total Ownership Costs (R-TOC) program grew out of numerous reviews and discussions at Program Executive Officers'/Systems Command Commanders' conferences, the Defense Science Board, and others. It was officially established in May 1999. The purpose of R-TOC is to maintain or improve current readiness while reducing operations and support costs. Based on Special Interest Programs (SIPs) experiences, recommendations for institutionalizing R-TOC have been developed. Service headquarters and the Office of the Secretary of Defense should expand their role in championing the institutionalization of cost reduction activities. To institutionalize cost reduction activities, a framework for reducing total ownership costs in programs was developed based on lessons learned abstracted from the experiences of the R-TOC SIPs and other information shared during the R-TOC Forums. The framework represents a methodical approach to institutionalizing R-TOC within program offices.

Description: Final rept.
Pages: 68
Report Date: DEC 2010
Contract Number: DASW01-04-C-0003
Report Number: A431845

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Keywords relating to this report:
BUDGETS
COST REDUCTION
DEFENSE SYSTEMS
FINANCIAL MANAGEMENT
LESSONS LEARNED
LOGISTICS SUPPORT
OPERATIONAL READINESS
RESOURCE MANAGEMENT
SHARING
SYSTEMS ENGINEERING
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