INFLUENCING DIRECT OPERATING COSTS: WHERE AND HOW

The accurate estimating of Direct Operating Costs (D.O.C.), and knowing where and how to influence those costs, is dependent upon good primary sources of Direct Operating Cost data. A number of internal and external sources are available to the manufacturer to provide ranges of data, averages, perspectives on cost behavior, and checks and balances in the estimating procedure. The estimating procedure itself must be formal, detailed, and systematic to provide continuity as model maturity affords opportunity for periodic adjustments and the factors for labor and parts price increases, extension of lives and overhaul intervals and other finite elements exhibit change. A case study culminating four years of research and field history illustrates the data collection, analysis and product development methods successful in effecting substantial reductions in D.O.C. on a selected major component. There are other design and development considerations that can provide economic benefit to both end-user and the manufacturer, often offsetting the R & D investment necessary to modify design. Additional factors affecting maintenance and having considerable effect on parts cost and maintenance manhours per flight hour can be overlooked in the design phase and while they are small factors not necessarily affecting form, fit or function, they deserve major design and engineering consideration. The manufacturer's effort in reducing D.O.C. must involve the total corporation, creating a corporate D.O.C. "consciousness", and methods of achieving this have been successfully demonstrated and are outlined in this presentation.