Page 104 - Global Project Management Handbook

4-12 STATE OF THE ART OF GLOBAL PROJECT MANAGEMENT

TABLE 4.5 Support Resource Categories
• Operation and maintenance manuals
• Spares and support materials list
• Tools and support and test equipment list
• Maintenance personnel requirements and work loading
• Training courses for operators and maintainers
• Operation, maintenance, supply, and training facilities
• Requirements for packing, handling, storage, and transportation

the liability to support the system throughout its operational life. If sufficient resources
are not available, administrative and logistics delay time (ALDT), discussed earlier will
increase, and A O will decrease accordingly.
The process continues by identification of each maintenance task that will be applica-
ble to support each maintenance significant item. Then a maintenance task analysis is
performed that identifies the total number and quantity of resources required to perform the
task. The results of all task analyses are consolidated to determine the full range and depth
of the required support resource package, which includes the things listed at Table 4.5. The
complete package includes all maintenance procedures (both corrective and preventive)
that then will be contained in the operation and maintenance manuals for the system; the
range of spares and other materials required for maintenance; the complete set of tools
and test equipment required for maintenance; the number of personnel required for main-
tenance and their work loading; training course needs for operators and maintainers;
facility requirements for operation, maintenance, training, and storage; and finally,
requirements for packaging, handling, storage, and transportation of resources.

COST OF OWNERSHIP (C O )

The third and possibly most important factor in decision making is the ultimate long-
term cost of ownership that may result from the final decisions made by the project
team during acquisition. As illustrated by Fig. 4.3, most of the cost-of-ownership deci-
sions are made early in the acquisition of a system. Therefore, it is extremely impor-

tant that the project team make every effort to determine the possible costs of each
option being considered prior to making the final decision. The most common tech-
nique for estimating C O during acquisition is life-cycle costing (LCC). The definition
and typical purposes of LCC are provided at Table 4.6. LCC is an attempt to identify
and quantify the total costs that may be incurred over the product life cycle.

TABLE 4.6 Life-Cycle Cost (LCC)
LCC: A cost-estimation process that compares the costs of the relative merits
of two or more options. Results in an estimate of the relative costs of the
options so that the total of differences can be compared as a single cost figure.
This includes the evaluation of
• Alternative operation/maintenance concepts
• Alternative design configurations
• Alternative systems/products
• Alternative logistics support policies
• Alternative suppliers