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    The contractor have stated that 95% quantity variance line is an aerospace industry standard. Can anyone in DAU confirm or deny this. I'm trying to confirm that 95% is in fact an aerospace industry standard. Any insight into this matter will be greatly appreciated.


    Answer

    No one that I queried here has ever heard of this as an “industry standard.” If you are referring to improvement curve slope data, I would go back to the vendor and question the slope being used; our experience shows that typical curve slopes for Aerospace hover around 85%.
     
    Percent Quantity Variance is used in Enterprise Resource Planning (ERP). This probably falls under Production, Quality and Manufacturing-type activity or possibly logistics since it deals with supplier evaluation of abilities to deliver required order quantities.  The ProAlpha site also has a definition but no standard.
     
    If you search "direct material cost variance," on the internet, you will find standard formulas and some on-line calculators. 
     
    I would also check with these areas in DCMA to see if they have any experience with this model.
    You may also want to check out the Aerospace Industries Association web page, it may cost you a fee to sign up though if you want more than the basic rates and standards that they post.

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