Creating a value based budgeting system for BAE systems

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Given the kind of systems tht BAE builds are likely to be unique or at least modified for each customer, there can be no standard price list and every order is costed individually. This also means that each years budget is zero based, with detailed budgets being prepared for three to four years ahead with a more strategic view pushing out to ten years. The duration of some of the larger projects means that costand pricing structures are subject to considerable change over their lifespans, which creates the need for a radically different approach to management in terms of both cash and Profit & Loss.