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How to Successfully Construct Life-Cycle Costing

Category: Presentations

Parametric models exist for estimating the life-cycle cost of hardware, software and information technology. When it comes to estimating life-cycle costs, the challenge is not the cost modelling, but the data gathering. The life-cycle is defined as the procurement (development and production) plus the in-service (Operating and Support) phase.

This paper introduces the concept of simple data gathering for Operating and Support cost models. It was developed out of a recognized need by a cost model vendor: a need for information and data on Operation and Support costs. The challenge was not to develop a more sophisticated cost model, but simply to obtain the data necessary to run a cost model – detailed analysis is not a substitute for lack of data.

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