A Study On Life-Cycle Investment Mechanism Of Armament

The investment of armament is an activity to gain weaponry and obtain military & economic proceeds for the development of the army, which involves several stages including confirming & researching, manufacturing & disposing, applying & maintaining, and going out of commission. In the new century, the inside and outside environment of the armament managing system has changed fundamentally, and a lot of disadvantage of the conventional investment mechanism & organizing pattern emerged. Nowadays, many armament investing projects run beyond their budget and lack money in the afterlife, which charges upon that each stage is disjointed. The investment mechanism of armament needs to be reformed for better investing efficiency and economic proceeds.Life-Cycle investment mechanism of armament refers to that the armament construction decision-making is after having appraised armament system's total life cycle investment expenses. It chooses the investment with the principle of achieving bigger fighting efficiency with the least costs. It also appraises each decision-making's influence to the entire investment in each stage and makes corresponding response. Through adjusting all stages'goals, the weaponry construction investment is disposed and implemented holistically. It maximizes the holistic investment effectiveness, and proposes the investment ratio assignment strategy of each stage. Life-Cycle investment mechanism of armament thinks much of the army's dominant position in the investment. From the angle of entire system and process it adjusts the investment strategy dynamically at the right moment, and carries out essential cost control and risk control in each stage of the investing process with CALS system & Value Engineering method. It also coordinates the benefit assignment of each participant, and enhances the investment yield through consummating the competitive mechanism, the supervising mechanism, the incentive mechanism, and the appraisal mechanism.