What was the stated purpose of the affordability analysis in the Navy example?

• A. To evaluate cost savings from a KPP change
• B. To plan staffing
• C. To determine schedule risk
• D. To assess vendor performance

Answer: (A)

Affordability analysis focuses on the cost impact of a change to a program and whether the overall cost remains acceptable. In the Navy example, its stated purpose was to quantify the cost savings that would result from altering a Key Performance Parameter. This framing lets decision-makers see how much money would be saved (or spent) if the KPP were changed, helping determine if the program stays within affordable bounds. Other aspects like planning staffing, assessing schedule risk, or evaluating vendor performance address different concerns and aren’t about the cost impact tied to a KPP change.