LIFE CYCLE COSTING IN SYSTEM ACQUISITION.
LOGISTICS MANAGEMENT INST WASHINGTON D C
Pagination or Media Count:
Life cycle costing is defined as the process of estimating all those costs--development, production, operation, and support--which can influence the choice among competing design concepts or specifications, among possible procurement procedures, or among competing proposals for production in the acquisition of major defense hardware systems. After discussion of its objectives and characteristics, life cycle costing is separated into three methods the implicit method the cost estimating relationship method and the element estimate method. The appropriateness of each method is discussed a for different stages of the system life cycle, b for incremental improvement systems and new generation systems, and c for overall system investment, overall operation and support cost, major subsystem investment, and selected operation and support cost elements. The roles of element structures, cost factors, and costing rules in Life Cycle Cost analysis are outlined.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies