An affordability prediction system to assess information availability in defence projects

Abstract

The current business environment is increasingly dependent on strategic information and knowledge in order to survive against competition and sustain profitability. The aerospace defence sector is facing the same challenge, because a good level of knowledge is required in making affordability decision in defence contracts, which could last over 30 to 50 years. In this paper, a system which assesses the level of information that is available for both customer and solution provider to decide whether a contract would be affordable across the project life cycle, is presented. It involves a method of score allocation of affordability factors based on affordability elements across the life cycle. The output helps decision makers in negotiating contracts before project starts. It informs contract deliverable by emphasising areas for data collection and indicates the risk involved in a project based on information availability. Further, the paper identifies limitations as well as areas for future improvement. © Springer-Verlag Berlin Heidelberg 2010.