Life Cycle Cost Introduction
Abstract
"Life Cycle Cost" (LCC) calculations, which give the global cost for the complete life cycle of a system, are becoming most common in the aeronautical field. Due to the actual budgetary context, characterized by stringent budget reductions, LCC is becoming a design parameter, having the same importance as the operational performance of the considered systems. Cost effectiveness analyses, combined analyses of total cost and operational effectiveness, are now often an integral part of the decision cycle, starting with the expression of an operational need and ending with a procurement order of the production aircraft. Recent examples are the American Joint Strike Fighter (JSF) and the European Future Transport Aircraft (FTA). LCC models are very well suited to make cost-effectiveness analyses. They generate the necessary data for the planning cycle, give a clear insight in the expense flows and guarantee a transparent cost structure. There are a lot of different LCC models available. Some of them are predictive models, allowing weighing different design alternatives against each other. Others are models, allowing calculating the LCC of existing systems based on statistical exploitation data. The experience of the Belgian Air Force using life cycle cost models is illustrated with two examples. These examples demonstrate that life cycle costing is a strong instrument assisting the logistic support manager, both on existing weapon systems and on weapon systems still to develop.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2000
- Accession Number
- ADP010418
Entities
People
- A. Husniaux