Life cycle cost analysis

The procedures for conducting life-cycle cost analysis and trade studies are discussed. Although the focus is on life-cycle costing, the procedures are applicable to any analysis. The types of effort discussed include the development of a life-cycle cost model, level of repair analysis, trade studies, and baselines. Examples of problems and pitfalls from two past programs are provided. One program involved a munition and its storage container. The maintenance concept was to test annually (with a portable suitcase-size tester) part of the fleet and to return failed munitions in their container to the depot for repair. The second program dealt with the development of a life-cycle cost model for engines. This cost model utilized historical data to develop cost-estimating relationships.<>