Which one of the following best reflects how a DoD acquisition program manager should go about implementing the CAIV philosophy?

Correct Answer:

An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit’s recurring cost is $1 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change. 
$900,000 $800,000 $500,000 $640,000 

Incorrect Answer:
  • Trading off schedule to achieve objective levels of system performance

6 comments:

  1. An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit’s recurring cost is $1 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change.
    $900,000 $800,000 $500,000 $640,000

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  2. If the above scenario is calculated at $2 rather than $1m, it is $1.6m. Half of that is $800k. If an 80% learning curve is observed and the production line is continuous and does not change the correct answer should be $640k.
    All feedback is appreciated.

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  3. Here is the right answer: Answer: Trading off specific performance parameters of the system to achieve program cost objectives

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