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: Conceptual studies, research, development, test, and evaluation (RDT&E) Investment, or procurement Operating and support (O&S) or in-service 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.
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: Propulsion system LCC element structure. Information exchange and relationships with: Aircraft manufacturer Equipment suppliers Customer The relationship of the LCC element structure to work breakdown structures. 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). Classification of the accuracy and applicability of LCC assessments.
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.