Government

Cost Driver

In support of the Total Ownership Cost (TOC) program, General Physics developed Cost Driver, a graphical approach for viewing cost drivers. With this insight, we were able to interpret the cost driver information to reduce program infrastructure costs and development initiatives, and convert the savings into revenue flow for the program. The articles listed below provide a guide to this development and identify areas of application.

You can learn more about GP's Cost Driver program by downloading the articles below.

• Development of the 5P Cost Driver Approach (95KB) - Discusses the differences between Life Cycle Costs (LCC) and TOC and the need for the Cost Driver model
• Government Cost Driver Profile Process (26KB) - Illustrates how a Cost Driver profile is created and provides program examples
• Cost Driver Initiative Process (39KB) - Discusses the initiative process GP has developed using the Cost Driver model
• Cost Driver Earned Value Management (CDEVM) (9KB) - Discusses the enhancement to the current Earned Value Management approach that addresses only LCC and not infrastructure issues associated with TOC
• Cost Driver Funding Cuts RECLAMA Application (9KB) - Presents a case where Cost Driver was used in a RECLAMA action.