Cost Structure and Life Cycle Costs for Military Systems
Abstract
Life cycle cost (LCC) represents all the costs that will be borne during the life of a System (Main System and Support System) to acquire, operate, support it and eventually dispose of it. The list of costs items to be considered in a project is defined and organised in a Life Cycle Cost Breakdown Structure (LCCBS) also referred to as a cost breakdown structure (CBS). Most nations have their own CBS that is used for national programs. In the same way, each national CBS refers to definitions that can be different from one country to another. The first aim of this study was to develop a generic cost breakdown structure (GCBS), common to all Nations, and an accompanying glossary of LCC technology to support the GCBS. tn system analysis, a CBS may be considered as a tool that enables analysts to define and compute LCC and decision makers to take decisions. The way analysts and decision makers use LCC has necessarily an impact on its definition and thus on CBS. That is why this aspect has been taken into account in the study. This aspect includes the classification of costs into several categories (direct, indirect, variable, etc.), the definition of LCC variants (LCC, TOC, COO, WLC) and the use of each one.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2003
- Accession Number
- ADA418708
Entities
Organizations
- NATO Science and Technology Organization