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Predicting the Life Cycle Cost
using Mathematical and
Software Models
Introduction
• This Software is used to calculate the Life Cycle Cost (LCC) of an equipment based on
Reliability, Maintainability, and Availability using appropriate methods to simulate, which
would otherwise have to be done manually and is difficult to analyze.
• This tool helps to analyze the LCC based on various governing parameters like Acquisition
Cost, Operational Cost, and Maintenance Cost etc.
• Various reports can be generated using this software for good decision-making
• The software is developed using J2EE and MySql
• The software is developed with the applicable mathematical formulas. Costs are derived or
calculated with a given cost estimating methods
2
Description
• The Software is designed to map any given system architecture into corresponding cost
elements based on reliability, availability and maintainability of the components.
• Each part of the system is configurable in its subcomponents and the importance of any
component in estimating the cost of system can be identified.
• To estimate LCC of an equipment, the tool accepts the cost inputs such as acquisition,
operation, maintenance and other costs of the equipment.
• The LCC of equipment is the sum of the Acquisition Cost, Operational Cost, Maintenance Cost
and Other Costs. Any revenues accrued shall be deducted from the LCC. LCC is calculated for
various parameters like operating hour per year etc. Where ever applicable the calculations
are done by considering inflation rate
3
Description contd..
• The system uses database for storing the information related to various cost elements of
various equipments and also provides a data base for equipment details.
• Generally LCC is done by a particular scientist at a given point of time, hence data base is
created with author name (scientist) as the main element to retrieve the details of the
equipment, costs etc.
• The software contains several modules. They can greatly enhance the calculation the LCC of
an equipment or system. Users can choose these modules according to their needs to
calculate the LCC of a system
4
The Main Features
• Equipment Tree Structure (ETS)
• Equipment Data
• Acquisition Cost
• Maintenance Cost
• Operational Cost
• Other Cost
• LCC Calculator
• Sensitivity Analysis
• Distributions
• Formulae
• Charts
• Reports
• Currency Converter
• Database Back up
• Scientific Calculator, Help and FAQ’s
5
The Main Features Description
• Equipment Tree Structure (ETS)
– Equipment Tree Structure (ETS) contains the list of equipments of the system in the left
side of the Main Screen. In particular the user is required to select
Equipment/Organization from ETS
• Equipment Data
– Equipment Data Module deals with the equipment details of the system used in the LCC
Estimation. This module allows the user to input the details of the equipment, such as
name, model etc.,
• Acquisition Cost
– Acquisition Cost Form allows the user to enter acquisition cost parameters to calculate
acquisition cost. In this module the user can enter the inputs for the various acquisition
cost parameters such as Basic Cost, Up gradation Cost, Initial Spare Cost, Packaging &
Forwarding Cost etc.,
6
The Main Features Description contd..
• Maintenance Cost
– Maintenance Cost Form allows the user to select the type of the maintenance cost:
• Annual Maintenance Cost
– Annual Maintenance Cost Form allows the user to enter maintenance cost parameters
to calculate Total Maintenance cost.
• Annual Breakdown Maintenance Cost
– Annual Breakdown Maintenance Cost form allows the user to enter breakdown
maintenance cost parameters to calculate Total Breakdown Maintenance cost
• Annual Schedule/Preventive Maintenance Cost
– Annual Schedule/Preventive Maintenance Cost Form allows the user to enter
schedule/preventive maintenance cost parameters to calculate Total
Schedule/Preventive Maintenance cost.
7
The Main Features Description contd..
– Variable Maintenance Cost
• Variable Maintenance Cost Form allows the user to enter maintenance cost parameters to
calculate Total Maintenance cost.
• Variable Schedule/Preventive Maintenance Cost
– Variable Schedule/Preventive Maintenance Cost form allows the user to enter
schedule/preventive maintenance cost parameters to calculate variable
Schedule/Preventive Maintenance cost.
• Variable Breakdown Maintenance Cost Form
– Variable Breakdown Maintenance Cost form allows the user to enter breakdown
maintenance cost parameters to calculate variable Breakdown Maintenance cost.
8
The Main Features Description contd..
• Operational Cost
– Operational Cost Form allows the user to enter operational cost parameters to calculate
the Annual Operational Cost.
– Also operational cost module permits the user to enter the inputs for the equipment
based on the following questions:
1. How much fuel or power consumed by equipment, if applicable both?
2. How many crew and support crews needed to operate the equipment?
3. How much the cost of the crew as well supports crews?
4. How much the Operational infrastructure, training, admin cost with respect to the
equipment?
5. Any miscellaneous cost?
6. Unit of cost calculation for example: year, week.
9
The Main Features Description contd..
• Other Cost
– Other Cost module is useful when some of the input costs are not covered in the above
cost modules. This module allows the user to provide the details of various cost
elements such as the cost of up gradation, disposal cost etc
• LCC Calculator
– LCC Calculator Form allows the user to view LCC of System (Organization) or Equipment
describing various cost parameters incorporated in various Cost modules.
• Sensitivity Analysis
– This module is used to analyze the LCC variation for selected equipment by varying the
cost percentages associated with that equipment
10
The Main Features Description contd..
• Distributions
– The Distributions used for Simulation are
Exponential
Triangular
Uniform
– User can select a particular distribution to simulate the various cost parameters like
Acquisition Cost, Operational Cost, Maintenance Cost and LCC based on MTBF, MTTR
and Availability values.
• Formulae
– The mathematical formulae used to estimate LCC are presented in this module. The
Formulae are
– Availability Rate
– MTTF/MTBF
– Dormancy
– Missile Reliability
– Net Present Value (NPV)
11
The Main Features Description contd..
• Currency Converter
– The Currency Converter Screen helps to exchange currency rates i.e., how much one
currency is worth in terms of the other. It is the value of a foreign nation’s currency in
terms of the home nation’s currency
• Database Back up
– The Software is developed using MySQL 5.0 as the DBMS of choice.
– The DBMS software will provide a backup capability to ensure protection of the data in
the DBMS. In addition, the DBMS software provides a transaction recording feature that
can be used to keep track of all transactions during normal operation.
• Charts
– This module helps the user to generate various types of charts like Bar, Pie, Combination
Pie and Water Fall and also to generate various reports such as Author based,
Equipment Costs, LCC of equipment and organization and Equipment list.
12
The Main Features Description contd..
• Reports
– User can generate the following reports:
• Author Based
– Acquisition Cost
– Operational Cost
– Maintenance Cost
• Annual
• Variable
• Equipment List
• Equipment Costs
– Acquisition Cost
– Operational Cost
– Maintenance Cost
• Annual
• Variable
– Equipment Data
• LCC
– Equipment
– Organization
13
The Main Modules
• User Module
• Equipment Data Module
• Acquisition Cost Module
• Maintenance Cost Module
• Other Cost Module
• LCC Calculator Module
• Output Module
• Database Management System Module
• Distributions used for Simulation Module
• Formulae Module
• Currency Converter Module
• FAQ’s and Help Modules
14
Sample Screens
15
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Life cycle cost

  • 1. Predicting the Life Cycle Cost using Mathematical and Software Models
  • 2. Introduction • This Software is used to calculate the Life Cycle Cost (LCC) of an equipment based on Reliability, Maintainability, and Availability using appropriate methods to simulate, which would otherwise have to be done manually and is difficult to analyze. • This tool helps to analyze the LCC based on various governing parameters like Acquisition Cost, Operational Cost, and Maintenance Cost etc. • Various reports can be generated using this software for good decision-making • The software is developed using J2EE and MySql • The software is developed with the applicable mathematical formulas. Costs are derived or calculated with a given cost estimating methods 2
  • 3. Description • The Software is designed to map any given system architecture into corresponding cost elements based on reliability, availability and maintainability of the components. • Each part of the system is configurable in its subcomponents and the importance of any component in estimating the cost of system can be identified. • To estimate LCC of an equipment, the tool accepts the cost inputs such as acquisition, operation, maintenance and other costs of the equipment. • The LCC of equipment is the sum of the Acquisition Cost, Operational Cost, Maintenance Cost and Other Costs. Any revenues accrued shall be deducted from the LCC. LCC is calculated for various parameters like operating hour per year etc. Where ever applicable the calculations are done by considering inflation rate 3
  • 4. Description contd.. • The system uses database for storing the information related to various cost elements of various equipments and also provides a data base for equipment details. • Generally LCC is done by a particular scientist at a given point of time, hence data base is created with author name (scientist) as the main element to retrieve the details of the equipment, costs etc. • The software contains several modules. They can greatly enhance the calculation the LCC of an equipment or system. Users can choose these modules according to their needs to calculate the LCC of a system 4
  • 5. The Main Features • Equipment Tree Structure (ETS) • Equipment Data • Acquisition Cost • Maintenance Cost • Operational Cost • Other Cost • LCC Calculator • Sensitivity Analysis • Distributions • Formulae • Charts • Reports • Currency Converter • Database Back up • Scientific Calculator, Help and FAQ’s 5
  • 6. The Main Features Description • Equipment Tree Structure (ETS) – Equipment Tree Structure (ETS) contains the list of equipments of the system in the left side of the Main Screen. In particular the user is required to select Equipment/Organization from ETS • Equipment Data – Equipment Data Module deals with the equipment details of the system used in the LCC Estimation. This module allows the user to input the details of the equipment, such as name, model etc., • Acquisition Cost – Acquisition Cost Form allows the user to enter acquisition cost parameters to calculate acquisition cost. In this module the user can enter the inputs for the various acquisition cost parameters such as Basic Cost, Up gradation Cost, Initial Spare Cost, Packaging & Forwarding Cost etc., 6
  • 7. The Main Features Description contd.. • Maintenance Cost – Maintenance Cost Form allows the user to select the type of the maintenance cost: • Annual Maintenance Cost – Annual Maintenance Cost Form allows the user to enter maintenance cost parameters to calculate Total Maintenance cost. • Annual Breakdown Maintenance Cost – Annual Breakdown Maintenance Cost form allows the user to enter breakdown maintenance cost parameters to calculate Total Breakdown Maintenance cost • Annual Schedule/Preventive Maintenance Cost – Annual Schedule/Preventive Maintenance Cost Form allows the user to enter schedule/preventive maintenance cost parameters to calculate Total Schedule/Preventive Maintenance cost. 7
  • 8. The Main Features Description contd.. – Variable Maintenance Cost • Variable Maintenance Cost Form allows the user to enter maintenance cost parameters to calculate Total Maintenance cost. • Variable Schedule/Preventive Maintenance Cost – Variable Schedule/Preventive Maintenance Cost form allows the user to enter schedule/preventive maintenance cost parameters to calculate variable Schedule/Preventive Maintenance cost. • Variable Breakdown Maintenance Cost Form – Variable Breakdown Maintenance Cost form allows the user to enter breakdown maintenance cost parameters to calculate variable Breakdown Maintenance cost. 8
  • 9. The Main Features Description contd.. • Operational Cost – Operational Cost Form allows the user to enter operational cost parameters to calculate the Annual Operational Cost. – Also operational cost module permits the user to enter the inputs for the equipment based on the following questions: 1. How much fuel or power consumed by equipment, if applicable both? 2. How many crew and support crews needed to operate the equipment? 3. How much the cost of the crew as well supports crews? 4. How much the Operational infrastructure, training, admin cost with respect to the equipment? 5. Any miscellaneous cost? 6. Unit of cost calculation for example: year, week. 9
  • 10. The Main Features Description contd.. • Other Cost – Other Cost module is useful when some of the input costs are not covered in the above cost modules. This module allows the user to provide the details of various cost elements such as the cost of up gradation, disposal cost etc • LCC Calculator – LCC Calculator Form allows the user to view LCC of System (Organization) or Equipment describing various cost parameters incorporated in various Cost modules. • Sensitivity Analysis – This module is used to analyze the LCC variation for selected equipment by varying the cost percentages associated with that equipment 10
  • 11. The Main Features Description contd.. • Distributions – The Distributions used for Simulation are Exponential Triangular Uniform – User can select a particular distribution to simulate the various cost parameters like Acquisition Cost, Operational Cost, Maintenance Cost and LCC based on MTBF, MTTR and Availability values. • Formulae – The mathematical formulae used to estimate LCC are presented in this module. The Formulae are – Availability Rate – MTTF/MTBF – Dormancy – Missile Reliability – Net Present Value (NPV) 11
  • 12. The Main Features Description contd.. • Currency Converter – The Currency Converter Screen helps to exchange currency rates i.e., how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency • Database Back up – The Software is developed using MySQL 5.0 as the DBMS of choice. – The DBMS software will provide a backup capability to ensure protection of the data in the DBMS. In addition, the DBMS software provides a transaction recording feature that can be used to keep track of all transactions during normal operation. • Charts – This module helps the user to generate various types of charts like Bar, Pie, Combination Pie and Water Fall and also to generate various reports such as Author based, Equipment Costs, LCC of equipment and organization and Equipment list. 12
  • 13. The Main Features Description contd.. • Reports – User can generate the following reports: • Author Based – Acquisition Cost – Operational Cost – Maintenance Cost • Annual • Variable • Equipment List • Equipment Costs – Acquisition Cost – Operational Cost – Maintenance Cost • Annual • Variable – Equipment Data • LCC – Equipment – Organization 13
  • 14. The Main Modules • User Module • Equipment Data Module • Acquisition Cost Module • Maintenance Cost Module • Other Cost Module • LCC Calculator Module • Output Module • Database Management System Module • Distributions used for Simulation Module • Formulae Module • Currency Converter Module • FAQ’s and Help Modules 14
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