The cost of ownership of avionics includes not only the development and acquisition cost, but also the yearly operating and support (O and S) (maintenance) cost of hardware, software, and support equipment. This paper presents an avionics cost of ownership methodology developed for USAF, its data sources, and business metrics computed for USAF decision makers as we move toward operating avionics as a business. The business model is used to determine which existing avionics are candidates for replacement with new technology and to prioritize the replacements. These avionics are often used on multiple aircraft types which necessitates analysis of the causes of the high cost of ownership on each type. Databases are used to document the processing functions, data flow, and constraints of the item being analyzed. These constraints include physical, environmental, electrical, and data interfaces. Databases containing alternatives are evaluated against standard mission scenarios for aircraft utilizing these high cost avionics to determine their impact on performance, O and S costs, and mission effectiveness. The results of the foregoing analyses steps are then used in life cycle cost analyses which consider different retrofit scenarios for each alternative for each aircraft type against the avionics being analyzed for replacement. The alternatives are prioritized and a risk analysis performed considering technical, schedule, and cost growth risks. The avionics cost of ownership methodology described in this paper processes data from USAF maintenance organizations. This has revealed the very large expenditures being made to support highly unreliable avionics. These methods can be applied to all military and commercial aircraft systems to determine not only the cost of ownership of existing systems, but also the cost of ownership of new systems when they are retrofit.
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