D-LCC
D-LCC is a powerful yet
very flexible
Life Cycle Costing Program. Below you will find further information
on:
Life Cycle Costing
Total Cost of Ownership
Cost Analysis
Ease of Use
Why
D-LCC |
| "The identification of appropriate
software was crucial for our LCC project. Several software
vendors were researched. D-LCC was the only product, exclusively
engineered to address LCC, but not specific to a sector,
industry, or technology. D-LCC also answered our criteria:
flexible enough to build a model 'from scratch', since
'canned' models all contained legacies of disappearing
procurement paradigms, and powerful and user-friendly
enough to allow model-building expeditiously." Robert
N. McGrath, ERAU |
Life Cycle Costing
Life Cycle Cost (LCC) analysis and Total Cost of Ownership
evaluation are the basis for decision making for the wide
range of industries and equipment: from IT systems to submarines.
LCC analyzes the total ownership costs of various design alternatives
and system's components over the projected life cycle of a
system.
D-LCC (Decision by Life Cycle Cost) makes the LCC analysis
easy and comprehensive. D-LCC is a key tool for managers,
decision-makers, engineers, ILS personnel, and other staff
involved in system acquisition, proposal writing, management,
development, production and through-life support.
Total Cost of Ownership
Total Cost of Ownership and Life Cycle Cost analysis with
D-LCC:
Evaluation and comparison of alternative design approaches.
Comparison of alternative strategies
Identification of cost effective improvements
Project's budget and economic viability assessment
Long term financial planning
Life Cycle Cost is defined by using a supplied or creating
a new Cost Breakdown Structure (CBS) and allocating cost variables
to each CBS primary element. D-LCC provides bottom-up cost
estimating, supports detailed examination of the costs and
parameters affecting LCC, and performs Net Present Cost analysis.
D-LCC combines the Cost Breakdown Structure
(CBS) with Product Breakdown Structure (PBS) and applies the
bottom-up calculation incorporating the time-scale (life cycle
phases).
Cost Analysis
|
D-LCC allows the user to apply pre-defined LCC models
as well as to create new Cost structures and models. An
existing CBS can be easily tailored to meet all needs
of any particular project.
Product Tree Cost Calculation option allows for incorporating
the Product Tree parameters in LCC model and calculating
any required cost elements (like spare parts cost for
each Level of Repair) across all Product Tree items.
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State-of-the-art features and options
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Net Present Cost (NPC)
In financial and budgetary analysis, a necessary requirement
is to identify the present value of future cash flows
called Net Present Cost. The NPC analysis also provides
comparison of options with different inflation and discount
rates, and is enhanced through sensitivity analysis of
these rates.
Cost Profile Analysis
D-LCC supports detailed examination of dynamics of future
cash flows over multiple time periods. |
Cost Profile evaluation
|
Sensitivity Analysis
D-LCC Sensitivity Analysis option in computes changes
in the LCC/TCO according to changes of any global variable.
The sensitivity analysis identifies major cost drivers
(Pareto "vital few"), supports trade-off analysis
and indicates the effect of altering critical parameters
and assumptions. |
Sensitivity Analysis
|
Cost-Effectiveness evaluation
Managers are interested in cost-effectiveness which is
typically calculated in terms of performance per unit
cost. D-LCC's Cost-Effectiveness module provides this
insight as well as other effectiveness measures. |
|
Cost Item analysis
D-LCC provides a utility to calculate the costs of a particular
budget line item. This "Cost Item" function
computes the contribution of any item, such as labor,
or material. Results are reported at the element level
and rolled up into a project total. |
|
Optimal Repair Level Analysis
(ORLA)
D-LCC includes a powerful ORLA module for calculating
the cost and effectiveness of various Level of Repair
alternatives per product tree item, thus supporting optimal
decision making |
The main reports and analyses
available in D-LCC:
Cost Profile by Cost Elements
Convenience and Ease of Use
D-LCC's libraries
make the LCC analysis procedure highly efficient:
|
Alternatives library -- a list of all possible alternative
decisions, policies, etc. |
|
Periods library -- a list of future periods or life
cycle phases |
|
Global Variables library -- a set of Global Variables
valid throughout the cost model and affecting many cost
elements, e.g. escalation and discount rates. |
Convenience and Ease of Use
D-LCC is also data compatible with
RAM
Commander.
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