introduction to life cycle cost
TRANSCRIPT
AE-332M / 714 Aircraft Design Capsule-4
Introduction to Life Cycle Cost
Prof. Rajkumar S. PantAerospace Engineering Department
IIT Bombay
AE-332M / 714 Aircraft Design Capsule-4
Over the life cost
Costs incurred from inception to disposal
LCC components in Engg. Design
Design & Development
Production
Support Equipment & Initial Spares
Operation & Support (O&S)
Disposal
Life Cycle Cost (LCC)
AE-332M / 714 Aircraft Design Capsule-4
Reduction in system cost Social requirements, inflation, economic recession, ..
Paradigm shift in Engg. Design‘Performance at any cost’
‘Design-to-cost’
‘Design-to-LCC’
Helps in selection of competing solutions
Helps in identification of cost reduction areas
Most of LCC gets determined quite early
Importance of LCC in Engg. Design
AE-332M / 714 Aircraft Design Capsule-4
Typical LCC breakupModern Combat Aircraft
Operation & Support
50%
Production 30%
Ground Support Eqpt.
& Initial Spares
5%
RDT & E14%
Disposal 1%
Source: Woodford S, Recent Combat Aircraft Life Cycle Costing Developments within DERA, RTO AVT Specialists meeting on Design for Low Cost Operation and Support, Ottawa, Canada, October 1999.
AE-332M / 714 Aircraft Design Capsule-4
LCC Determination Phases
Majority Of LCCCosts Are Determined
Early In Design
AE-332M / 714 Aircraft Design Capsule-4
Design & Developmento CERs for factors, parameters and features that affect cost
Productiono Mostly activity based costing
• Tooling, Material, Fabrication, Assembly, QC, ……..
Support Equipment & Initial Spareso Can be reduced by careful design
Operation & Support (O&S)o Usually the largest component; models available
Disposalo Major issue of concern from environmental considerations
Estimation of LCC components
AE-332M / 714 Aircraft Design Capsule-4
Largely statistical Based on actual costs of previous aircraft Difficult to determine the actual cost
a/c procurement spread over many years Non-optimal production rate; higher costs
Differences in Accounting procedure Then-Year Rupees
o Actual Money spent in each year of the program Constant Year Rupees
o Money spent ratioed by inflation to some specific year
Problems in Cost Estimation
AE-332M / 714 Aircraft Design Capsule-4
Then-Year v/s Constant YearAircraft Then-Year (different years) Constant-Year (1978)F-15 USD 17.6 million USD 18.8 millionF-16 USD 10.8 million USD 08.2 million% diff 60% 130%
AE-332M / 714 Aircraft Design Capsule-4
Production quantity & Rates
Source: Aircraft Design: A Conceptual Approach, D R Raymer
a/c prodn.
AE-332M / 714 Aircraft Design Capsule-4
Light Combat Aircraft Sanctioned in 1983 : Rs. 560 Crores Amount spent till 2008: Rs. 5489.78
Crores Two TDs and 3 Prototypes developed
o Max. speed of Mach 1.4 achieved IOC in 2010, FOC in 2012 IAF & IN wanted 220 a/c, Current Orders = 20
Kaveri Engine Initial Sanction: Rs. 382 Crores Expenditure till date: Rs. 2839 Crores
Example of Cost Over-runs
AE-332M / 714 Aircraft Design Capsule-4
A Cost ComparisonName Country Cost
(Crore Rs.)
F/A-22 Raptor USA 480
Rafale France 270
JAS-Gripen Sweden 160
Mirage 2000 France 130
LCA India 110
AE-332M / 714 Aircraft Design Capsule-4
Aircraft LCC Estimation
AE-332M / 714 Aircraft Design Capsule-4
Aircraft LCC components
Size of Boxes proportional to
magnitude of costs
AE-332M / 714 Aircraft Design Capsule-4
Estimation of Research Development Test & Evaluation
(RDT&E) Cost
AE-332M / 714 Aircraft Design Capsule-4
Technology Research Design Engineering Prototype Fabrication Ground & Flight testing Evaluation of Operational Suitability Certification Airworthiness Mission Compliance
Design Documentation
RDT&E Components
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Cost Estimation Methods
Aircraft Cost (US $) =150-300* DCPR weightDCPR = Defense Contractor’s Planning ReportWDCPR = Wt. of parts made by a/c manufacturer Empty Weight – Weight of Bought Out items Typical List of Bought Out Items:
o Wheels, Brakes, Tires, Engines, Starter, Cooling Fluids, Instruments, Batteries, Power supplies, Fire-control systems, Air-conditioning systems, Avionics, Furnishings, APU,…
Two-main approaches Activity Based
o Detailed assessment of actual tasks, WBS creation CER based
o Formula based on DCPR weight, Max. speed, Production rate, ….
AE-332M / 714 Aircraft Design Capsule-4
RAND DAPCA IV Model Estimates hours required for RDT&E & Prodn.
o Engineering, Tooling, Manufacturing, QCo Costs estimated by multiplying with MHRs
Other costs estimated directlyo Development Supporto Manufacturing Materialo Flight Test
Additional Cost elementso Financingo Profit
CER based RDT&E Estimation
AE-332M / 714 Aircraft Design Capsule-4
Effort Hours Airframe Design & Analysis, Test Engineering Configuration control, Systems Engineering
Support Hours Propulsion and avionics system integration Tooling & production Planning
Mainly during RDT&E, but also during prodn. EE500 = 3*EE1
Engineering Hours
AE-332M / 714 Aircraft Design Capsule-4
Tooling Hours
Preparation for Production
o Tools and Fixtures
o Moulds and Dies
o Programming of NC machines
o Design & fabrication of production test
apparatus
Tooling support during production
Tooling
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Manufacturing Forming, Machining & Fastening Sub assembly & Final assembly Routing
o Hydraulics, Pneumatics, Electrics BO item installation
o Engine, Avionics, Subsystems Effort by Airframe subcontractors
Quality Control Inspection at receiving, production, assembly Tools, Fixtures, Components, sub-assemblies, Major
assemblies, Final Assembly
Manufacturing & QC Labor
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Mock Up
Structural test rigs
LG Drop test
System Integration test-Rigs
Iron Bird Simulators
Development Support Costs
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Iron Bird Simulator for F-728
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CERs in DAPCA IV model
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Formula for RDT&E Cost