Life Cycle Analysis of Aviation Products

Life Cycle Analysis of Aviation Products

2006

INTRUDUCTION

It is very easy to question a nation for its decision to retire seemingly useful aircraft , but there are many economic factors that need to be taken into account

We often hear about how much it costs to buy any particular model of plane , but people often underestimate just how expensive it is to operate and maintain aircraft . Not only do you have to consider the direct costs of flying the plane (pilot pay , fuel , and other consumables , but also the costs

of pilot training , the costs of parts and labor to perform routine maintenance , the costs of training ground crew to perform that maintenance , the costs of obtaining and maintaining support equipment needed to service the planes , and the costs of the facilities needed to perform this service and maintenance . We often lump all these factors together into the "life-cycle cost " of an airplane

GENERAL DISCUSION

Life Cycle Cost is extremely important when determining whether to retain or replace aircraft , acquire new or used aircraft , and in evaluating the financing , or leasing . With this program you can predict Cash Flows and Net Present Values and compare different forms of ownership

As aircraft have become increasingly complex , the life-cycle costs associated with maintaining sophisticated equipment and training crew to operate and service that equipment have grown substantially . For this reason , we see a trend in militaries around the world to standardize on as few types of aircraft as possible . By operating only a couple types of planes , a military can consolidate its training and servicing activities thereby minimizing the amount of money needed for aircraft operations and maintenance

This motivation is likely a major factor in the business decision to eliminate their old aircraft . The business can instead focus its maintenance and training budgets on a few designs , which tend to share much in common , as opposed to siphoning off a large chuck of that money to support a completely different design . Understanding and modeling factors related to learning , economics , marketing , risks , and uncertainty can enable designers to design more cost-effective systems The importance of developing comprehensive life cycle cost models cannot be over emphasized with reference to affordable systems . Particular areas of concern include production cost , estimating , organizational learning , pricing and marketing , sub-contracting production , and predicting competitors ' cost

In addition to the component of the cost estimation , usually the focal point of most cost models , accurate modeling of all factors related to the production , operations , and support is necessary to generate calibrated life cycle cost pros . Basic engineering economics can be used for determining price once the cost has been estimated . Interest formulas are available for predicting rates of return and other indicators of profitability . However the complex models used for life cycle cost prediction must utilize algorithm for stimulating additional factors as organizational learning and manufacturing processes

The three primary component f the system life cycle are non recurring costs , recurring costs , and operations and support costs . According to Apgar...