This paper presents a general approach for quantifying and assessing business practices [1,2]. The methodology is aimed at addressing high level broad scope situations a company may encounter [3,4]. Usually, mathematically or statistically based techniques have proven to be inappropriate, inadequate, or inaccurate when attempting to solve such problems [3,4,5,6]. The difficulties experienced in using these approaches have been alleviated by prescribing a logical series of general steps. These steps may be modified to fit the prevailing circumstances and data of an organization. A brief description of the steps, which form the methodology, is provided.
The remainder of this paper discusses the application of the methodology to an actual business environment. The approach was used to develop a quantitative model for the acquisition of fixed wing military aircraft. A quantitative model of the business process was derived from official Department of Defense (DoD) directives [7,8]. Data used by the model came from actual cost figures for aircraft that were purchased by the Air Force, Army, and Navy over a forty year period . These data represent forty-one aircraft types that were acquired at a cost of 238 billion dollars. A computer simulation program of the acquisition process, that uses the actual cost data, was developed. This model was used to replicate an actual acquisition case.