This SAE Aerospace Recommended Practice (ARP) describes the concept of life cycle costing with emphasis on LCC techniques and applications as applied to the phases of the program cycle. These phases are:
a
Conceptual studies, research, development, test, and evaluation (RDT&E)
b
Investment, or procurement
c
Operating and support (O&S) or in-service
d
Disposal of systems, equipment, and services
Cost elements, estimating techniques and other factors which have a bearing on LCCs are described; including use of cost estimating relationships (CER), simulation techniques, and "top-down"/"bottom-up" approaches. Consideration is also given to:
a
Risk and uncertainty assessments
b
Impact of economic variations including inflation, interest rates, and exchange rate variation
c
Adoption of discounting techniques when undertaking investment appraisals
The use of tailored LCC models is preferred since there is an advantage in adopting a range of approaches particularly for the prediction of the costs of future technology and estimates of uncertainty which are specific to the aerospace industry.
Rationale
The LCLS committee discussed the ARP4293 and has decided that the best course of action is stabilization.
The SAE Life Cycle Logistics Supportability (LCLS) is focused on standards and handbooks that facilitate the acquisition logistics process. By developing and maintaining supportability standards and handbooks, coalescing industry positions and preparing and coordinating positions on government policies and practices the committee is the industry innovation point for Logistics Product Data. Participants on SAE LCLS committee include OEMs, suppliers, software companies, consulting firms, government and others across the aerospace and defense industries.
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ARP4293A
Life Cycle Cost - Techniques and Applications
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Life Cycle Cost - Techniques and Applications
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