Vinayak Bindu Airnotical

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AE 451 Aeronautical

Engineering Design

Assoc. Prof. Dr. Serkan Özgen


Dept. Aerospace Engineering Design

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Problems when estimating cost
 Number of parameters involved (technical, financial,
political)
 Type of money to be used
 Then year dollars: actual dollars spent in each year of the
program; past, present and future. For future program costs an
estimation of the inflation rate must be made.
 Constant year dollars: actual dollars spent normalized by
inflation factors for some selected year.
 Aircraft production quantity and rate; the more aircraft
produced, the more manufacturer learns and aircraft
can be produced cheaper (learning curve effect).
Each time the production quantity is doubled, the
labor cost per aircraft goes down by 20 %.
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Elements of life cycle cost

 RDT&E (Research, Development, Test and


Evaluation): technology research, design
engineering, prototype fabrication, flight and
ground testing and evaluations for
operational suitability. RDT&E costs are fixed
costs (non-recurring costs).

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Elements of life cycle cost

 Flyaway (production) costs: labor and


material costs to manufacture the airplane
including the airframe, engines and avionics.
Includes production tooling (jigs, fasteners,
molds, etc.), manufacturer’s overhead and
administrative expenses. Production costs
are recurring.

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Elements of life cycle cost

 Program cost: the total cost to develop and


deploy a new airplane into the inventory
(mostly military). Some aircraft require
special gound facilities for operational
deployment.

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Elements of life cycle cost

 Operations and maintenance: covers fuel, oil,


aircrew costs, maintenance and insurance.
 Disposal: getting rid of the airplane after its
useful life has ended.

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RDT&E and Production Costs
(DAPCA IV model)
Development and Procurement Costs of Aircraft Model
 is a cost estimation relationship model and it
estimates the hours required for RDT&E and
production by the engineering, tooling,
manufacturing and quality control groups.
 These are multiplied by hourly rates to yield
costs.

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RDT&E and Production Costs
(DAPCA IV model)
 Engineering hours: include airframe design
and analysis, test engineering, configuration
control and systems engineering.
 Tooling hours: includes preparation for
production. Design and fabrication of tools
and fixtures, production of moulds,
programming CAD/CAM tools, development
and fabrication of production test apparatus.

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RDT&E and Production Costs
(DAPCA IV model)
 Manufacturing hours: direct labor to fabricate
the aircraft; forming, machining, fastening,
subassembly fabrication, final assembly,
routing (hydraulic, electric and pneumatic
lines) and purchased part installation
(engines, avionics, sub-sytems, etc.)
 Quality control: includes receiving inspection,
production inspection and final inspection.

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RDT&E and Production Costs
(DAPCA IV model)
 Flight test costs: all costs to demonstrate
airworthiness and/or compliance with military
standards except for the costs of the flight
test airplanes themselves.
 Manufacturing materials: raw materials and
purchased hardware and equipment from
which the airplane is built (aluminum,
composites, electric, hydraulic, pneumatic
systems, fasteners, etc.)

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