Metrics to Compare Aircraft Operating and Support Costs in the Department of Defense

Abstract

This report examines several issues associated with the cost-per-flying-hour (CPFH) metric used in the Department of Defense (DoD). CPFH is calculated as the ratio of an aircraft fleets operating-and-support (O and S) costs divided by its flying hours. Subsets of an aircraft fleets total annual O and S cost are budgeted in DoD for the flying-hour program used to achieve and maintain flight-crew proficiency and used to calculate hourly rates when DoD aircraft are flown on a reimbursable basis. In addition, other aggregations of costs are used to calculate CPFH and compare O and S costs of different aircraft for various other reasons, including informing decisions on aircraft acquisition and force structure. This report examines usages of CPFH in DoD, including its use to compare O and S costs of different aircraft. The report recommends a definition of CPFH to be used when comparing aircraft and recommends several ways the cost and usage data should be normalized. The report also recommends a cost-per-aircraft metric(where primary aircraft inventory [PAI] is used for the number of aircraft) as an alternative metric for comparing the O and S costs of aircraft.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2015
Accession Number
AD1156426

Entities

People

  • Bradley Deblois
  • Edward G. Keating
  • Ilana Blum
  • John Wallace
  • Michael Boito

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Air Force
  • Aircrafts
  • Airframes
  • Business Administration
  • Cost Analysis
  • Department Of Defense
  • Fighter Aircraft
  • Financial Management
  • Flight Crews
  • Logistics
  • Maintenance
  • Maintenance Costs
  • Statistical Analysis
  • Systems Engineering
  • United States
  • Unmanned Aerial Systems
  • Warfare

Fields of Study

  • Business

Readers

  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.