ABSTRACT
Life Cycle Cost (LCC) analysis provides a cost-effective solution on the basis of figures of merit directly associated with LCC, through iterations affected by interconnected technical and economic factors intended to minimize the total cost. Trade-off studies for Life Cycle Costing are concerned with the quantification of different options to ensure that a successful system configuration is conceived. Applications of parametric methodologies require access to historical data, which sometimes are difficult to collect. Parametric techniques are also significantly helpful in shortening the estimation process. Parametric estimation is driven by data from many programmes and covers a broader range. If the application of a parametric method is envisaged, the development of Cost Estimating Relationships (CERs) will have to be considered, taking into account all consequences in terms of model design schedule, accuracy verification and confirmation of applicability to the specific case.
