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Life
Cycle
Cost
Analysis
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Level Of Repair Analysis  
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The cost of a system or equipment to the end user over
it planned lifetime is its Life Cycle Cost of ownership. The LCC is the
sum total of direct, indirect, recurring, non-recurring, & other related
costs, which are estimated to be incurred and include costs associated
with design, research & development, investment, operations, maintenance,
& support of a system over it's life cycle. The life cycle of a system
can be defined in several distinct phases, from proposal, conception,
design, development, production, and fielding, to the disposal phase.
In determining the LCC of a system, consideration must be made to
the overall maintenance concept. This may include issues such as whether
a commercial maintenance infrastructure or a dedicated maintenance infrastructure
will be employed.
Take the example of a consumer who buys an automobile, prior to making his final decision he may consider the purchase price, finance charges, the fuel consumption and even the reliability of the vehicle in question. The consumer would tradeoff this criteria with another vehicle makes, he or she is considering from a competitor. Fortunately for most consumers, although they may not think so at the time, the repairs cost for a automobile or truck is relatively cheap compared to specialised commercial and military systems |
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This is in part due to the fact that when they have a vehicle repaired, they are using a commercial support infrastructure that is utilized by many other consumers. The cost of the support infrastructure is spread across the general population.
In the case where specialized equipment is procured and new or dedicated support infrastructure is required, this would have impact upon the LCC. This can also be compounded by the fact that spare parts are specialized and themselves are designed and manufactured to a higher quality level, e.g. military standards. To effectively implement a LCC analysis, many parameters must be taken into consideration to determine the cost to the user during the system's expected operational life. This includes spares, repair turnaround, training duration, skill levels, technical publication, operating cost etc. The LCC analysis is most effective and will have its greatest impact on cost at the conceptual and early design phase, of a program. Thus the following should be considered:
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MTain
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Last Updated: July 2009 |
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