Cost-of-Delay Analysis

Cost-of-Delay Analysis (CoDA) is a method for creating tactical decision rules for program managers. Such decision rules aid project planning and provide a sound economic framework for making day-to-day project decisions. The method is both powerful and simple and can be taught to a group in 2-4 hours. Its results are easy to understand and apply. It is one part of an overall effort to reduce the time to develop and field defense systems within the Air Force and Department of Defense (DoD). This tool helps quantify the value of cycle time on specific projects and aids in making the trade-off decisions associated with production cost, schedule, system operating performance, and development expense. In 1999, the DoD adapted CoDA slightly from the method originally used by the commercial industry, specifically the work of Reinertsen (1983). This research will first confirm the continued need for such a tool in AF Acquisition, and determine how program offices are currently answering questions about where to best invest an additional amount of money on their program.