• Proceedings of the Korea Society for Industrial Systems Conference
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• 1998.03a
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• pp.169-176
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• 1998

This article investigates the software acquisition problems as two dimensional : custom/pacakage and insource /outsource. The analysis adopts the cost-benefit frame work in explaining software acquisition problems and takes two leveled approach. The first level examines the cost-benefit relationship of the determinants affecting both dimensions, and these determinants are derived from theories of transaction cost, incomplete contracting, and agency. The second level focuses on the impact of general cost-benefit frivers of the software acquisition decisions. The results facilitate a broader and more detailed understanding on the software acquisition problems.

• Journal of the military operations research society of Korea
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• v.31 no.2
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• pp.86-104
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• 2005

During the 'Cold War', DoD had focused on the high performance and timely acquisition which enabled quick field out the superior weapons than the enemy regardless of acquisition cost. But, after the cold war, the focus has been changed to the 'cost effective acquisition' of weapon systems because of tremendous investment cost & economic theory. The U.S. DoD has been tried to make 'the most effective acquisition system'(AR, Acquisition Reform) from mid-80's with their enough experienced program data, and as a result, they had launched the new acquisition procedure - DoD 5000 series - in 1996. DoD is continuously doing the study and making several improvements on the procedure after it had been once announced. On Oct 30. 2002, DoD noticed that they cancelled the DoD 5000 series documents(5000.1, 5000.2, 5000.2-R) and 5000.2-R will be reissued as a guide. The most recent version which focused on 1) evolutionary acquisition and spiral development, 2) procedure for future technology systems including software and IT, 3) supplement on the area of efficiency, flexibility, creativity and innovation of old system was issued by May 12. 2003. This article suggests a 'good idea' based on the reviewing of these DoD efforts for our defense acquisition regulation and procedure to go. It includes the CAIV concept application, IPT utilization, T&E method, cost or price based contract etc-all for the effective acquisition.

• The Journal of Information Systems
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• v.14 no.2
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• pp.173-189
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• 2005

Recently, Korean software industry has enjoyed fast growth, thus phenomenon drew attention to the need for more precise and standardized cost estimation system for software development. However, many obstacles exist in achieving a more precise and universally applicable cost measurement. These obstacles include : (1) the intangible nature of intellectual efforts, (2) lack of cost standards, (3) lack of quantitative yardstick to determine the potential complication, (4) lack of both cost monitoring during development and coordinating between acquisition process and cost estimation. The purpose of this study is to facilitate software development cost estimation considering acquisition process that will meet korean user's needs, and to create better models that will be cost for software development particularly for Korean environment.

• Proceedings of the KSR Conference
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• 2009.05a
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• pp.198-205
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• 2009

It is known that the operation and maintenance cost is generally higher than the acquisition cost of rolling stocks. It is very important for reducing the operation and maintenance cost to acquire the rolling stocks which are well designed with regard to the operation and maintenance cost. Therefore life cycle cost including the operation and maintenance cost is needed to be considered from the acquisition phase. This article presents a procedure and a model for life cycle cost which are applicable to the acquisition of rolling stocks.

• Journal of the Korea Institute of Military Science and Technology
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• v.15 no.5
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• pp.565-576
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• 2012

Cost estimates are necessary for government acquisition program to support decisions about funding, to develop annual budget requests and to validate resource requirements at key decision points. Many researches have been done about cost estimating technique recently. Parametric cost estimating models based on CERs(Cost Estimating Relationships) have been mainly used using regression method with historical data. However, there are many restrictions in developing Korean version CERs because the number of data points are too small. Specially, data collection and data management system are unstable in Korean defense environment, when developing CERs. In this research, we analyzed the historical data, and found some cost drivers in guided weapon system area. We developed the Acquisition Unit Cost CER using the regression to remove multicollinearity in the historical data. So we could overcome the restriction of the insufficient sample number. This research as a first attempt is meaningful in terms of obtaining our own Acquisition Unit Cost CER using historical cost and physical characteristic in Korean development environment.

• Journal of Convergence for Information Technology
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• v.11 no.6
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• pp.113-119
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• 2021

Since the weapon system project has a large ripple effect on the country by investing a huge budget, analysis of acquisition methods that secured economic feasibility is required in the planning stage to promote the weapon acquisition project. In response to this demand, economic analysis for acquisition method is preformed in the research stage of previous studies, but the analysis on economic analysis for acquisition alternative is imperfect at the present. In this research, we identify the limitations of the effect analysis and propose an additional cost-benefit analysis method to analyze the economic feasibility of the acquisition alternative. It is possible to present the universal results of economic feasibility analysis for not only multiple alternatives but also single alternatives by presenting benefit/cost ratio. It is applied to research on acquisition project of OO guided rocket, and the result of economic analysis for each alternative is presented.

• Journal of the Korean Society for Railway
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• v.13 no.3
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• pp.257-263
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• 2010

Operation and maintenance cost of a rolling stock is generally higher than its acquisition cost. Therefore, it is necessary for reducing life cycle cost (LCC) to make rolling stocks easy and low costly for operation and maintenance. In addition, their operation and maintenance support systems should be effective and efficient. To accomplish this, operator should specify LCC requirements in the early stage of acquisition and make a contractor to provide the rolling stocks of low LCC. This article presents a procedure and a verifiable LCC model available in the general acquisition process where an operator specify requirements and a contractor provide the rolling stock meeting the requirements.

• Journal of the military operations research society of Korea
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• v.3 no.2
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• pp.49-77
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• 1977

Weapon systems are curcial instruments for the security of a nation and critical elements for the victory in a war. Since modern weapon systems tend to be capital-intensive with high precision and quality, they become more and more complex and diversified; their acquisition costs become huge; and their technological obsolescence becomes accelerated. Therefore, the systematic management of weapon acquisition process would be one of the most important defense tasks at the national level. To analyze such problems and find solutions, this paper has studied various aspects related to the efficient management of weapon system acquisition. After brief summarization of the general characteristics of weapon systems, their effectiveness, and developmental trend, the paper discusses the defense management policies and techniques for the weapon systems. Specifically, four alternative acquisition methods such as indigenous R & D, foreign purchase, co-production and joint-production are discussed and analyzed by systems approach. The systems analysis procedure to evaluate and select weapon acquisition method is as follows; 1) to analyze the merits and demerits of the alternative methods, 2) to screen unrealistic alternatives through the consideration of significant factors such as political, economic, military, technological, and social constraints, 3) to evaluate and select an optimal one among the remaining acquisition methods after the cost-effectivenss analysis. For the base of cost-effectivess analysis, cost analysis model as well as effectiveness analysis model of each acquisition method are developed.

• Journal of the Korea Institute of Military Science and Technology
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• v.14 no.5
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• pp.850-858
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• 2011

The risk analysis plays an important role in weapon system acquisition project due to uncertainties in the acquisition process. But in domestic, studies on risk analysis are insufficient and risk cost is not included in acquisition budget in policy. Therefore, in this study, we suggest a method that measures risk or success probability of project using the stochastic model. In particular, in order to calculate the success probability, we apply the joint probability distribution model of cost and schedule that are critical factors influencing the project risk. And also we verify the applicability of this model in Korean defence industry environment through case studies.

• Journal of the military operations research society of Korea
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• v.36 no.2
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• pp.107-124
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• 2010

In order to estimate the life cycle expense of the weapon system acquisition from the first demand planning phase until the last disuse phase, we apply the reliable expense analysis method to the current situation in Korea by using the sensitivity analysis. We estimate the total cost of the weapon system acquisition by focusing on the most important variables such as exchange rate, and hence by strengthening the function of the existing expense analysis method, which is used to be simply recognized as a tool of cost reduction. Therefore, this study could make a contribution to the literature in this area, in terms of deriving the most cost-efficient method of acquisition by comparing the various estimated costs that result from the different alternatives of the weapon system acquisition.