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LIFE CYCLE COST - TECHNIQUES AND APPLICATIONS

E-35 Prop Economics for Acquisition and Ownership Committee
  • Aerospace Standard
  • ARP4293
  • Current
Published 1992-02-14 by SAE International in United States
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.
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DATA FORMATS AND PRACTICES FOR LIFE CYCLE COST INFORMATION

E-35 Prop Economics for Acquisition and Ownership Committee
  • Aerospace Standard
  • ARP4294
  • Current
Published 1992-02-14 by SAE International in United States
This SAE Aerospace Recommended Practice (ARP)4294 is directed at life cycle cost (LCC) analysis of aerospace propulsion systems and supplements AIR1939. Specific topics addressed by ARP4294 are listed below: a Propulsion system LCC element structure. b Information exchange and relationships with: (1) Aircraft manufacturer (2) Equipment suppliers (3) Customer c The relationship of the LCC element structure to work breakdown structures. d The relationship between LCC analysis and other related disciplines (e.g., technical (performance analysis, weight control, component lives), reliability, availability and maintainability (RAM), integrated logistic support (ILS), production and finance). e Classification of the accuracy and applicability of LCC assessments.
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AIRCRAFT ENGINE LIFE CYCLE COST GUIDE

E-35 Prop Economics for Acquisition and Ownership Committee
  • Aerospace Standard
  • AIR1939
  • Current
Published 1986-12-01 by SAE International in United States
AIR 1939 addresses communication of LCC data between equipment suppliers, aircraft engine producers, aircraft manufacturers, and users, as illustrated in Figure 1. The LCC data categories addressed include: research, development, test and evaluation (RDT&E); acquisition (initial procurement and investment); and operating and support (O&S) costs. While input and output formats are suggested, calculation procedures and cost methodology are specifically excluded since many LCC models preferred by the industry are company sensitive or proprietary (Figure 1). The relationship of LCC input data to program phase is described. Ground rules and assumptions are addressed. A glossary of LCC terms is provided. The LCC impact of propulsion systems on other aircraft systems is considered. This document was specifically developed for military propulsion system cost analysis. However, it is believed that a functional relationship exists between military and commercial Life Cycle Cost analysis and that with some interpretation, sections of AIR 1939 might be applicable to commercial propulsion systems as well. In summary, AIR 1939 provides a basis for LCC calculations, for monitoring of LCC status resulting from tradeā€¦
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