Naval Ship Life Cycle Cost (LCC) Model 1 SPAR ASSOCIATES, INC. - - PowerPoint PPT Presentation

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Naval Ship Life Cycle Cost (LCC) Model 1 SPAR ASSOCIATES, INC. - - PowerPoint PPT Presentation

Naval Ship Life Cycle Cost (LCC) Model 1 SPAR ASSOCIATES, INC. The Life Cycle of a Ship Conception Stage: All activities necessary to develop and define a means for meeting a stated requirement. For ships and equipment, this normally


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Naval Ship Life Cycle Cost (LCC) Model

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The Life Cycle of a Ship

  • Conception Stage: All activities necessary to develop and define a means for

meeting a stated requirement. For ships and equipment, this normally includes research and development, design, contract specifications, identification of all support necessary for introduction into service, and identification of funding required and managerial structure for the acquisition.

  • Acquisition Stage: All activities necessary to acquire the ship and provide support

for the ship and equipment identified in the conception stage.

  • In-Service Stage: All activities necessary for operation, maintenance, support and

modification of the ship or equipment throughout its operational life. The in- service stage is normally the longest stage.

  • Disposal Stage: All activities necessary to remove the ship or equipment and its

supporting materials from service.

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The Naval Ship Life Cycle Cost (LCC) Model is an extension to SPAR’s existing cost model for estimating costs for ship design and new construction. This cost model now includes features for estimating the costs of ship

  • perations and other life cycle activities. With the LCC

estimating features linked directly to the design and construction cost model, changes in the design and production build strategy automatically flow into their impact upon LCC.

Design & Construction Cost Model Life Cycle Cost Model

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Initial Generation of Design & Construction Cost – Lead Ship

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PHASE I

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The Cost Model has features for estimating new construction costs for multiple vessel acquisition programs

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12 Ship New Construction Cost Estimates

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New Construction Costs & Schedules

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The Cost Model assumes ship operations begins when construction is completed.

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Generation of Operations, Repair & Maintenance Scenarios

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PHASE II

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The LCC Cost Model generates a full compliment of pertinent

  • verview charts that easily show the effects of

design/construction/operations alternatives upon LCC. Chart does not include planned Modernization.

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The LCC Cost Model offers features for planning large-scale re-investments for mid-life refurbishing, upgrades and modernization. Such activities typically require costs to rip-out and dispose of existing equipment and systems prior to fabricating and installing the replacement upgrades.

MID ID-LIFE MODERNIZATION

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Cumulative Costs that Include Mid-Life Modernization

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Since the Design & Construction Cost Model has features for estimating costs for multiple ship acquisition programs, additional features estimate LCC across the multiple ship class.

LCC for Mult lti-Vessel Cla lass Programs

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Estimated Annual LCC Costs Across Class

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Cumulative LCC Costs Across Class

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The LCC Cost Model can be used to identify differences in LCC with alternative ship systems, materials, construction build strategies as well as operations and maintenance scenarios. Selecting better design choices can produce ships that are less expensive to operate and maintain and can increase the in-service time, and even lengthen its useful life expectancy in meeting the ship’s mission requirements.

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Summarizing LLC per Ship Operating Hours

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Evaluate impact on LCC for changes in design/construction scenarios, operations requirements, repair & maintenance plans

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PHASE III

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Life cycle costing can be applied to establish improvements at different levels of technology evolution:

  • 1. Ship Design Decisions
  • 2. Ship Alterations/Modifications/Conversions
  • 3. Equipment Selections
  • 4. Plant Configurations
  • 5. Commonality Evaluations
  • 6. Replacement Upgrades versus Maintaining Older

Obsolete Equipment/Systems

  • 7. Substituting Different Materials & Methods in Design,

Engineering, & Manufacture

  • 8. Alternate Maintenance and Upgrade Plans & Schedules

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The life cycle modeling provides many ways to vary not only the impact of changes in elements of design and construction, but also the many variations of operation requirements, maintenance and upgrade plans. While the cost model offers cost data extracted from SPAR’s wide ranging libraries, other sources of cost data can be added. For additional details of the LCC cost model, its user manual can be downloaded from SPAR’s web site.

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Over 45 Years Serving the Ship ipbuil ilding & Repair In Industry ry

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