Value added analysis for army equipment modernization

This paper describes the Value Added Analysis methodology which is used as part of the US Army's Planning, Programming, Budgeting, and Execution System to assist the Army leadership in evaluating and prioritizing competing weapon system alternatives during the process of building the Army budget. The Value Added Analysis concept uses a family of models to estimate an alternative system's contribution to the Army's effectiveness using a multiattribute value hierarchy. A mathematical optimization model is then used to simultaneously determine an alternative's cost-benefit and to identify an optimal mix of weapon systems for inclusion in the Army budget.