(Costing) A NATO Framework for Life Cycle Costing

Marcel C. Smit (1)

1 Law Enforcement, Procurement & Exploitation

There is a long and documented history of both cost growth and estimating optimism within military system acquisition programmes. This is particularly the case for multi-national programmes. As the nature of future acquisition programmes will be more multi national oriented a common approach is required to generate realistic and consistent life cycle cost estimates for a future system. This paper presents the findings to date of the NATO Research and Technology Organisation to develop a framework for life cycle costing. This framework consists of a generic cost breakdown structure, methods and models to be used and a guideline for conducting a Life Cycle Cost analysis in all stages of the system life cycle. All this is summarized in a Code of Practice. The paper concludes presenting the next step in the NATO cost improvement process, i.e. to exercise the guideline for example programmes. An independent cost estimate is conducted on three systems to demonstrate proof of concept. The results of these independent cost estimates will be further used to improve the guideline and the code of practice. Future work

Mots clés: Physical Sciences

Domaines: Sciences de l'ingénieur [physics]

Marcel C. Smit. (Costing) A NATO Framework for Life Cycle Costing. International Journal of Computer Integrated Manufacturing, 2011, pp.1. ⟨10.1080/0951192X.2011.562541⟩. ⟨hal-00710048⟩