A framework for documenting and analyzing life-cycle costs using a simple network based representation

The introduction of high reliability systems combined with new ways of operating complex systems, particularly in aircraft design and operation has received much attention in recent years. Some systems are now being introduced into service, however, justifying such systems on a financial basis is difficult and may act to limit the rate of introduction on new products. Conventional life cycle costing based on a hierarchical cost breakdown structure is poor at recording and analysing the cost implications of introducing new technologies that have effects that span more than one phase in the life cycle. There is a risk that too much emphasis is put on ‘faith’ that a candidate technology will reduce cost because the cost analysis methods lack descriptive and analytical power. We describe an approach to representing the costs associated with introducing new technologies and evaluating their total cost. Our aim was to facilitate the comparison of different technological choices in new product development, with a particular interest in how the perceived benefits of enhanced reliability systems can be shown in a way that is inclusive, objective and easy to understand