A multi-level programming model for controlling the operation cost of a complex product system

A novel analysis frame, house of cost control, is developed for a complex product system to manage the operation cost in a whole life circle. Specifically, the house of cost control and its components are designed to reflect the demands of cost control activities. Additionally, a multi-level programming model is constructed for the house of cost control to optimize the effect of cost improvement, which concerns the conflicts between several amelioration strategies. Finally, the case of a commercial aircraft production system is conducted to verify the effectiveness and practicality of the above method, which can furnish a new solution for the whole life cycle of cost management activities of a complex product system.