Introduction to Life Cycle Cost Prof. Rajkumar S. Pant Aerospace - PowerPoint PPT Presentation

Introduction to Life Cycle Cost Prof. Rajkumar S. Pant Aerospace Engineering Department IIT Bombay AE-332M / 714 Aircraft Design Capsule-4

Life Cycle Cost (LCC)  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 AE-332M / 714 Aircraft Design Capsule-4

Importance of LCC in Engg. Design  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 AE-332M / 714 Aircraft Design Capsule-4

Typical LCC breakup Modern Combat Aircraft Disposal RDT & E 1% 14% Operation & Support 50% Production Ground 30% Support Eqpt. & Initial Spares 5% 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 LCC Costs Are Determined Early I n Design AE-332M / 714 Aircraft Design Capsule-4

Estimation of LCC components  Design & Development o CERs for factors, parameters and features that affect cost  Production o Mostly activity based costing • Tooling, Material, Fabrication, Assembly, QC, ……..  Support Equipment & Initial Spares o Can be reduced by careful design  Operation & Support (O&S) o Usually the largest component; models available  Disposal o Major issue of concern from environmental considerations AE-332M / 714 Aircraft Design Capsule-4

Problems in Cost Estimation  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 AE-332M / 714 Aircraft Design Capsule-4

Then-Year v/s Constant Year Aircraft Then-Year (different years) Constant-Year (1978) F-15 USD 17.6 million USD 18.8 million F-16 USD 10.8 million USD 08.2 million % diff 60% 130% AE-332M / 714 Aircraft Design Capsule-4

Production quantity & Rates a/c prodn. AE-332M / 714 Aircraft Design Capsule-4 Source: Aircraft Design: A Conceptual Approach, D R Raymer

Example of Cost Over-runs  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 AE-332M / 714 Aircraft Design Capsule-4

A Cost Comparison Name 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

RDT&E Components  Technology Research  Design Engineering  Prototype Fabrication  Ground & Flight testing  Evaluation of Operational Suitability  Certification  Airworthiness  Mission Compliance  Design Documentation AE-332M / 714 Aircraft Design Capsule-4

Cost Estimation Methods  Aircraft Cost (US $) =150-300* DCPR weight  DCPR = Defense Contractor’s Planning Report  W DCPR = 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

CER based RDT&E Estimation  RAND DAPCA IV Model  Estimates hours required for RDT&E & Prodn. o Engineering, Tooling, Manufacturing, QC o Costs estimated by multiplying with MHRs  Other costs estimated directly o Development Support o Manufacturing Material o Flight Test  Additional Cost elements o Financing o Profit AE-332M / 714 Aircraft Design Capsule-4

Engineering Hours  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.  EE 500 = 3*EE 1 AE-332M / 714 Aircraft Design Capsule-4

Tooling  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 AE-332M / 714 Aircraft Design Capsule-4

Manufacturing & QC Labor  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 AE-332M / 714 Aircraft Design Capsule-4

Development Support Costs  Mock Up  Structural test rigs  LG Drop test  System Integration test-Rigs  Iron Bird Simulators AE-332M / 714 Aircraft Design Capsule-4

Iron Bird Simulator for F-728 AE-332M / 714 Aircraft Design Capsule-4

CERs in DAPCA IV model AE-332M / 714 Aircraft Design Capsule-4

Formula for RDT&E Cost AE-332M / 714 Aircraft Design Capsule-4