Systems Life Cycle Costing: Economic Analysis, Estimation, and Management

Series:
Published:
Content:
Author(s):
Free Standard Shipping

Purchasing Options

Hardback
ISBN 9781439828915
Cat# K11422

$109.95

$87.96

SAVE 20%


eBook (VitalSource)
ISBN 9781439828922
Cat# KE11317

$109.95

$76.97

SAVE 30%


eBook Rentals

Other eBook Options:
 

Features

    • Takes a life cycle approach to cost analysis, estimation, and management, focusing on systems and software
    • Focuses on technology-centric examples
    • Provides methods, processes, and tools (MPTs) for life cycle costing
    • Contains unpublished material on the costing of commercial off the shelf systems
    • Presents the MPTs for a product development perspective
    • Uses Excel for most applications with most problem solutions developed using spreadsheets
    • Includes costing estimation and analysis techniques for software, COTS, and other issues for complex systems
    • Covers advanced techniques such as simulation base costing and cost estimation relationships

    Summary

    Although technology and productivity has changed much of engineering, many topics are still taught in very similarly to how they were taught in the 70s. Using a new approach to engineering economics, Systems Life Cycle Costing: Economic Analysis, Estimation, and Management presents the material that a modern engineer must understand to work as a practicing engineer conducting economic analysis.

    Organized around a product development process that provides a framework for the material, the book presents techniques such as engineering economics and simulation-based costing (SBC), with a focus on total life cycle understanding and perspective and introduces techniques for detailed analysis of modern complex systems. The author includes rules of thumb for estimation grouped with the methods, processes, and tools (MPTs) for conducting a detailed engineering buildup for costing. He presents the estimating costing of complex systems and software and then explores concepts such as design to cost (DTC), cost as an independent variable (CAIV), the role of commercial off-the-shelf technology, cost of quality, and the role of project management in LCC management.

    No product or services are immune from cost, performance, schedule, quality, risks, and tradeoffs. Yet engineers spend most of their formal education focused on performance and most of their professional careers worrying about resources and schedule. Too often, the design stage becomes about the technical performance without considering the downstream costs that contribute to the tota1 life cycle costs (LCC) of a system. This text presents the methods, processes, and tools needed for the economic analysis, estimation, and management that bring these costs in line with the goals of pleasing the customer and staying within budget.

    Table of Contents

    Overview of Systems Life Cycle Costing
    Introduction to Systems Life Cycle Costing
    Systems Life Cycle Costing
    Economic Analysis
    Cost Estimation
    Cost Management
    Summary
    Questions
    Bibliography
    References

    Introduction to Engineering Economy
    Introduction
    The Capital Budgeting Decision
    Time Value of Money
    Amortization
    Investment Measures
    Inflation/Deflation
    Summary
    Question
    Problems
    Bibliography
    Reference

    Advanced Economic Analysis of Alternatives
    Introduction to Advanced Cash Flow Analysis
    Income and Cash Flow Statements
    Expected Value
    Sensitivity Analysis
    Break-Even Analysis
    Summary
    Questions
    Problems
    Bibliography
    Reference

    Life Cycle Framework and Techniques
    Introduction to Developing Life Cycle Models
    Developing LCC Models
    Life Cycle Cost Categories
    Estimating LCC Throughout the Product

    Development Cycle
    Summary
    Questions
    Problems
    Bibliography
    References

    Simulation-Based Costing
    Introduction
    Review of Probability and Statistics
    Discrete Process Generators
    Continuous Process Generators
    Probability and Statistics Summary
    Simulation in Practice
    Using Readiness Levels for Model Input
    Simulation Using Spreadsheets
    Building Systems Simulations
    Summary
    Questions
    Problems
    Bibliography
    References
    Appendix 5A

    Costing of Complex Systems
    Introduction
    Issues Surrounding Complex Systems
    Systems Engineering and Management Costs
    From Requirements to Architectures
    Summary
    Questions
    Problem
    Bibliography
    References

    Software-Intensive Systems
    Introduction
    Software Estimating Techniques
    Summary
    Questions
    Problems
    Bibliography
    References
    Appendix 7A

    Parametric Cost Estimating
    Introduction
    The Role of Statistics
    Some CERs of Interest
    Summary and Conclusions
    Questions
    Problems
    Bibliography
    References

    Cost as an Independent Variable
    Introduction
    CAIV Evolution Through the Life Cycle
    CAIV Metrics
    Design to Cost versus CAIV
    Summary
    Questions
    Bibliography
    References

    Costing and Managing Off-the-Shelf Systems
    Introduction
    COTS
    GOTS
    Software Reuse
    Open Source
    Summary
    Questions
    Problems
    Bibliography
    References

    Cost of Quality
    Introduction
    Six Sigma
    CMMI
    Generic Cost of Quality Models
    Conclusions
    Questions
    Problems
    Bibliography
    References

    Project Management’s Role in Life Cycle Costing
    Introduction
    Basics of Networks
    Work Breakdown Structure
    Progress Measurement
    Monte Carlo Simulation of Networks
    Summary
    Question
    Problems
    Bibliography
    References

    Appendix A: Abbreviations and Acronyms
    Appendix B: Excel® Tutorial to Support Economic Analysis and Simulation-Based Costing
    Index

    Author Bio(s)

    John Farr, Ph.D., P.E. is the leader of a highly acclaimed systems engineering and engineering management school who possesses a wealth of private, government, and educational management experience who has a proven track record in growing academic and research programs.