Page 108 - Global Project Management Handbook

TOTAL LIFE-CYCLE SYSTEM MANAGEMENT 4-15

• Number of helicopters 20 helicopters
• Missions per year 180 missions
• Mission duration 8 hours
• Operational life 20 years
20 × 180 × 820 = 576,000 life operating hours

FIGURE 4.17 Estimate of life usage.

MAKING THE FINAL DECISION

The final project team decision as to which helicopter to purchase must consider all
three factors O E , A O , and C O as significant indicators of the potential results for each
option under consideration. Table 4.7 presents an example of the results for the heli-
copter purchase. Using these data as the basis for a final decision, it appears that the
helicopter that provides the best balance between operational effectiveness, opera-
tional availability, and cost of ownership is helicopter 1. This helicopter does not have
the highest operational effectiveness rating, but it does provide a reasonably high
capability for a far less cost per operating hour. The helicopter with the highest opera-
tional effectiveness rating, helicopter 2, has a much lower operational availability rat-
ing and a much higher cost-of-ownership estimate. Helicopters 3 and 4 both have two
of three ratings that are lower than helicopter 1, so they are obviously not desirable
options for purchase.

ESTABLISHING THE CAPABILITY

TLCSM does not stop with the project team decision about which option to select for
procurement. TLCSM includes putting into place the complete capability to support
the system selected for procurement and the capability to support it throughout its
operational life. The statistics (see Table 4.7) used to select the preferred option for

procurement become the in-service measurement criteria. It is important that the proj-
ect team initiate the processes necessary to collect and analyze the in-service opera-
tion and support data to ensure that the system attains the O E , A O , and C O estimated
during procurement. All resources required to support operation and maintenance of
the system must be purchased and positioned so that they will be available when
required. It is only when the complete package of systems and necessary support
infrastructure has been delivered and positioned that the capability to perform the
required mission will be realized.

TABLE 4.7 Decision-Making Statistics
Helicopters being considered #1 #2 #3 #4
Operational effectiveness (O E ) 91 94 89 86
Operational availability (A O ) 94 89 92 94
Cost per operating hour (C O ) $634 $841 $572 $756