ABSTRACT
Computer-based models can be used in Life Cycle Cost (LCC) estimation to identify costs that will be incurred in the implementation of a certain design solution and costs that can be saved as a consequence of this implementation. Models adopted in estimating LCC elements should be selected to accommodate peculiarities and constraints specific to the system, so that design options can be thoroughly analyzed and especially certain details can be justified: for example, the maintenance concept optimization resulting from a Level of Repair Analysis (LORA). Analysts are required to become adequately familiar with the model functional mechanism, to assess its LCC analysis capability and especially to identify cost drivers in the Cost Breakdown Structure across the different system life cycle stages. Cost models can vary from a simple one-formula model to an extremely complex model that involves hundreds or even thousands of calculations.
