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Cost of Ownership, WLC, LCC & LORA

First Delegate: £1,650.00 + VAT Second Delegate and MoD: £1,485 + VAT Duration: 5 Days

Course Description

Course Overview

The course is an intensive study of Cost of Ownership and the modelling techniques that can be applied to ownership cost estimation and how decision models function. It begins with a detailed discussion of the LCC, TLC, and WLC and LORA processes to determine how and why these techniques are applied. Then the course embarks on an intensive syndicate-based workshop with more than a total of 24 hours of 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.

Course Outline:

Lesson 1: Cost of Ownership Concepts including:

  • LCC Modelling & concepts
  • TLC Modelling & concepts
  • WLC Modelling & concepts
  • Costing and its uses
  • Supportability engineering modelling
  • Budget forecasting modelling
  • Resource optimisation modelling
  • The relationship between cost modelling and LSA
  • Applications and limitations of LCC, TLC and WLC

Lesson 2: Cost Estimation modelling techniques and model structures

  • Philosophy of estimation algorithms
  • Costing categories
  • Non-recurring costs
  • Recurring costs
  • Time-based costs
  • Event-based costs

Lesson 3: Life Cycle Cost Modelling (Practical Exercise)

Students participate in syndicates to apply LCC techniques in modelling a real-world acquisition programme to evaluate design, procurement and support alternatives. Practical exercise demonstrates how LCC should be used to establish programme targets for reliability, maintainability, personnel requirements, maintenance concept, support concept and support infrastructure to minimise cost of ownership. It also illustrates how significant issues relating to cost of ownership can be identified, quantified and monitored.

Lesson 4: Whole Life Cost and Through Life Cost Modelling (Practical Exercise)

Students participate in syndicates to apply WLC and TLC techniques in modelling a real-world acquisition programme to establish budget objectives and funding requirements. The practical exercise demonstrates how cost of ownership can be estimated and then analysed to identify potential areas for improvement.

Lesson 5: Level of Repair Analysis

  • Concept of LORA
  • Applications during and after acquisition
  • LORA modelling techniques
  • LORA modelling practical exercise

At the end of this four-day workshop students will:

  • Understand Cost of Ownership concepts
  • Understand the purpose and uses of cost estimation models
  • Understand how Cost of Ownership is a key ingredient to decision-making
  • Understand the significant differences in LCC, TLC, WLC, and LORA
  • Be able to select and validate cost estimation models
  • Understand the relationship between LCC, TLC, WLC and LSA
  • Understand how LORA forms part of LCC, TLC, WLC and LSA activities
  • Appreciate the applications and limitations of cost estimation techniques
  • Be able to build LCC, TLC or WLC models and assess how existing models think
  • Understand how recurring and non-recurring costs are included in cost estimation
  • Have used a cost model to determine the implications of support decisions on LCC and the use of sensitivity analysis and Monte Carlo simulation
  • Have used a cost model to determining budgeting requirements of Through Life Cost.
  • Have used a generic LORA model to determine the proper maintenance policy for an example military system
  • Understand the ground rules for model selection, model validation techniques and contractual implications of LCC, TLC, WLC and LORA.
Dates: 01 Oct 2018 - 05 Oct 2018
Speaker:     Stephen Hunt
Venue: Northampton

"Good course and got what I came for"
Logica Delegate  
"Knowledgeable, flexible course tutor with good real world examples."
Pilatus Aircraft Delegate  
"Good course, excellent enthusiastic instructor with a wealth of knowledge."
BAE Systems Delegate