ABSTRACT
Simulation can play a key role in assessing risk for operational analysis and life cycle costs. Modeling and simulation continue to be key analysis tools throughout the life cycle, especially early in programs. Simulations can be designed so that meaningful measures of merit can be extracted from the model. For the modern engineer, modeling and simulation should be applied throughout a system's life cycle in support of product development planning. Engineers should integrate the use of modeling and simulation tools and technology into all development and management activities, including cost analysis throughout the product life cycle. This chapter presents simulation-based costing processes and techniques to conduct total ownership costs versus risk studies. We present the theory behind simulation, including developing process generators. Many real-world examples are presented to illustrate the importance of assigning risks to costs.
