Page 93 - Global Project Management Handbook

CHAPTER 4

TOTAL LIFE-CYCLE
SYSTEM MANAGEMENT

James V. Jones
President, Logistics Management Associates,
Irvine, California

James V. Jones is an internationally recognized authority on integrated
logistics support and has an indepth experience in program manage-
ment, business processes, and development of logistics support sys-
tems. He is an internationally sought-after consultant, lecturer, and edu-
cator and has authored several technical reference books, including
Integrated Logistics Support Handbook (3rd ed., McGraw-Hill, 2006),
Engineering Design: Reliability, Maintainability, and Testability
(McGraw-Hill, 1988), and Logistic Support Analysis Handbook (McGraw-
Hill, 1989). Mr. Jones has participated as a member of several U.S.
Department of Defense committees that produced key policies and
standards. His involvement with U.S. logistics policy continues to this
date. Mr. Jones is currently president of Logistics Management
Associates (LMA), Irvine, CA, a consulting firm with emphasis on sys-
tems engineering, supportability engineering, and logistics manage-
ment. LMA enjoys an international array of clients in both the military
and civilian sectors.

The success or failure of a project typically is measured against established budget and
schedule requirements. If a project is completed on schedule and within budget, then it is

considered to have been completed successfully, and if the project exceeds either its budget
or its schedule, then it is probably deemed to have been unsuccessful. However, this tradi-
tional method may not be the most appropriate in all cases. It may be better to assess success
or failure based on the long-term results of the project output. Situations where a project has
resulted in a capital expenditure of a company or organization, such as building a new manufac-
turing facility or purchasing a new fleet of aircraft, should be gauged based on the financial
viability and utility of the manufacturing facility or aircraft fleet rather than on the adherence
to schedule and budget by the project that managed their development and acquisition.
The most common measures for long-term success are
Operational effectiveness (O E ), which is a measure of how well a system performs
assigned performance functions
Operational availability (A O ), which determines how often the system is available to
perform assigned functions
Cost of ownership (C O ), which is the annualized representation of resources consumed
directly in the procurement, operation, training, support, and maintenance of a system
at all stages of its life

4-1
Copyright © 2006, 1994 by The McGraw-Hill Companies, Inc. Click here for terms of use.