The course is a comprehensive study of Cost of Ownership and Level of Repair Analysis (LORA) principles and modelling techniques that can be applied to ownership cost estimation. It considers how these models function and how they can and are used to inform the decision making process. It begins with a detailed discussion of the principles associated with costing and the Life Cycle Costing, Through Life Costing and Whole Life Costing and LORA processes to determine how and why these techniques are applied. A series of syndicate-based exercises give delegates practice and opportunity for the hands-on development and use of models. The course prepares the student to be able to select, use and validate LCC, TLC, WLC and LORA models.
Classroom Course: 5 Days
On-site: 5 Days
This course is suitable for project review teams, bid teams ILS and LSA staff responsible for or associated with bid preparation, management or evaluation, in-service managers, costing and budgeting staff and those involved in future strategy planning.
This course is endorsed by the Chartered Institute of Logistics and Transport (CILT) and contributes to Continuing Professional Development (CPD) hours.
Module 1: Cost Concepts and Applications
The underlying concepts of Cost effectiveness and Availability and how these may be addressed are considered, together with the various parameters and definitions that are necessary in order to develop the relevant figures of merit.
The reasons and uses of Life Cycle Costing are discussed together with the essential terminology that is necessary to understand when considering the development and use of Cost estimates. The applications and limitations of LCC, TLC and WLC are discussed together with their roles in Budget forecasting and modelling.
The concepts of the ‘Time value of Money’ and the ‘Earning power of money’ are discussed and the various mechanisms by which this may be addressed are considered.
Module 2: Cost Concepts and Applications
Additional Cost related concepts are addressed including the types of cost, how they differ and how these costs may be organised and rationalised. This is supplemented by an exercise where the delegates address these issues from both general Project and Support costs perspectives.
Module 3: LCC Model Development
The underlying principles and reasons for the construction and use of mathematical models are discussed.
The major types of Cost models are considered and how and when they are best used within the Lifecycle. This Session ends with the identification of key issues that must be addressed when undertaking any modelling activity but which are particularly relevant to cost modelling.
Module 4: Life Cycle Cost Analysis
The development of LCCA Models and the uses of LCCA are discussed and supplemented by a delegate exercise to develop and utilise a basic LCCA model.
The basic LCCA process is discussed and summarised.
Module 5: CER Discussion and Development
This Session considers the structure, uses and development of Cost Estimating Relationships and how they are used within cost based models. This is supplemented by exercises where the delegates consider and develop several CERs which would be used as a part of a cost based model.
Module 6: Trade-offs and Life Cycle Costing
The principles and types of trade off approaches are discussed supported by examples. This supplements consideration of the role of cost models and estimates in decision making.
The role and uses of Cost Profiles and Breakeven analyses in cost modelling are also discussed and relevant techniques illustrated using spreadsheet based examples.
Module 7: Level of Repair Analysis
The concept of LORA and its application within Supportability Analysis is considered together with its applications during and after acquisition. This Session considers the different types of LoRA, their uses and inter-dependencies.
This Session includes LORA modelling principles and the completion of a practical LORA modelling exercise by the delegates in order to illustrate the essential principles.
Module 8: System Costing and LoRA Exercise
This is a summary activity where the previous cost models are developed and improved by the application of student developed CERs within the framework models previously discussed. The potential benefits and drawbacks of these CERs and the resulting models are discussed together with any associated limitations of the developed models.
The course concludes with a general discussion and the opportunity for delegates to further address any particular issues which may be of interest to them.
At the end of this Five day course students will:
Understand the costs associated with the provision of capability and related costing concepts and appreciate the applications and limitations of cost estimation techniques.
Understand the purpose and uses of cost estimation models and the need for and development of Cost Estimating Relationships, and the use of cost models to determining budgeting requirements for Through Life Cost and the contractual implications of LCC, TLC, WLC and LORA.
Understand how Cost of Ownership is a key ingredient to decision-making and the significant differences and uses of LCC, TLC, WLC, and LORA. They will be able to select and validate cost estimation models and understand the relationship between LCC, TLC, WLC and LSA.
Understand the role and purpose of LORA including using a generic LORA model to examine the principles and justify the maintenance policy for an example system.
Understand the structure of cost models, how recurring and non-recurring costs are included in cost estimation and how these may vary through the differing phases of the Lifecycle.
Have examined and critiqued the major types of cost model to determine the implications of support decisions on LCC and informing Design & Support related decisions.
Understand the use of cost models to determining budgeting requirements for Through Life Cost and the contractual implications of LCC, TLC, WLC and LORA.
Allan Webb’s Open Public Classroom Courses are delivered at the Delta by Marriott, Cheltenham Chase,
Shurdington Road, Brockworth, Gloucester GL3 4PB.
If required, and where student numbers justify doing so, the course can be tailored to a specific organisation or industry (whilst retaining all the core elements) and conducted at an individual company’s premises.
Allan Webb also offers bespoke courses to meet the needs of our clients. If our public course offerings are not quite what you are looking for, please get in touch to discuss your requirements. From mixing and matching modules from existing courses, to arranging on-site or in-house sessions for large groups on a convenient date, Allan Webb works with our clients to ensure that they get the experience that works for them.
Contact: Use our contact form or email Training@allanwebb.co.uk.
Alternatively, you can use the form at the bottom of the page to request additional information.