A life cycle value assessment model for design, production, and logistic support systems

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Virginia Tech

A new economic model for the evaluation of integrated Design, Production, and Logistic Support Systems (DPLSSs) is designed and developed in this thesis. The DPLSS model was created after a survey of Life Cycle Costing (LCC) applications revealed that no models for assessing integrated design, production, and logistic support systems were available. The evaluation technique the model is based on is called Life Cycle Value Assessment (LCVA). LCVA differs from LCC in that it emphasizes consideration of life cycle revenues as well as costs.

The system addressed by the DPLSS model has a life cycle which includes product design, production capability design and construction, production, product distribution, logistic system support and maintenance, and system disposal. The baseline production capability assumed when developing the DPLSS model involves batch processing, forming the base material into individual units, and performing detailed processing operations. It has also been assumed that items produced are non-repairable.

The DPLSS model facilitates the evaluation of new DPLSSs by leading managers through the new LCVA methodology, A Cost Breakdown Structure (CBS) which is compatible with the DPLSS life cycle has been developed as a basis for the model. This CBS is used to address DPLSSs descriptively and non-natively during LCVA evaluations.

A menu-driven computer program has also been developed to implement the DPLSS model on an IBM PC. This program leads users through the new LCVA-based methodology, performs economic and sensitivity analyses on their inputs, and then allows "what-if?-analyses on varying system configurations to be performed.