ABSTRACT
This chapter shows the principles and mathematics involved in creating a simple model that, in this case, was used for assessing the likely prototype unit cost and the production unit cost for an item of airborne equipment. The model was created to generate product costs for missile launchers carried by combat aircraft. At the start of the project to develop the model, it was recognised that the item specification and interface requirements alone were insufficient to define the product parameters as it was usually possible for the designer to generate at least two alternative schemes that could meet the specification. The parameters chosen must relate directly to the particular product; they may be physical: weight, size, etc. or performance related: such as speed, thrust and output rate, or some combination of both. External factors such as economic conditions and maturity of the technology may also be parameters to be taken into account.
