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

AE-332M / 714 Aircraft Design Capsule-4

Introduction to Life Cycle Cost

• Prof. Rajkumar S. Pant

Aerospace 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

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Typical LCC breakup Modern Combat Aircraft

Operation & Support 50% Production 30% Ground Support Eqpt. & Initial Spares 5% RDT & E 14% 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 LCC Costs Are Determined Early I n Design

AE-332M / 714 Aircraft Design Capsule-4

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

Estimation of LCC components

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 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
• Actual Money spent in each year of the program
• Constant Year Rupees
• Money spent ratioed by inflation to some specific year

Problems in Cost Estimation

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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%

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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
• 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

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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

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Aircraft LCC Estimation

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Aircraft LCC components

Size of Boxes proportional to magnitude of costs

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Estimation of Research Development Test & Evaluation (RDT&E) Cost

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 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 weight  DCPR = Defense Contractor’s Planning Report  WDCPR = Wt. of parts made by a/c manufacturer

• Empty Weight – Weight of Bought Out items
• Typical List of Bought Out Items:
• 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
• Detailed assessment of actual tasks, WBS creation
• CER based
• Formula based on DCPR weight, Max. speed, Production rate, ….

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 RAND DAPCA IV Model

• Estimates hours required for RDT&E & Prodn.
• Engineering, Tooling, Manufacturing, QC
• Costs estimated by multiplying with MHRs
• Other costs estimated directly
• Development Support
• Manufacturing Material
• Flight Test
• Additional Cost elements
• Financing
• Profit

CER based RDT&E Estimation

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 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

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 Tooling Hours

• Preparation for Production
• Tools and Fixtures
• Moulds and Dies
• Programming of NC machines
• Design & fabrication of production test

apparatus

• Tooling support during production

Tooling

AE-332M / 714 Aircraft Design Capsule-4

 Manufacturing

• Forming, Machining & Fastening
• Sub assembly & Final assembly
• Routing
• Hydraulics, Pneumatics, Electrics
• BO item installation
• 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