Life Cycle Cost Estimation

1. CERMAS 1.0
● CERMAS 1.0 is a user friendly and menu driven software designed to predict
the LCC (Life-Cycle Cost) of a system based on Reliability, Maintainability,
and Availability using appropriate methods to simulate, which would
otherwise have to be done manually and is difficult to analyze.
● The simulation tool helps to analyze the LCC based on various governing
parameters like Acquisition Cost, Operational Cost, and Maintenance Cost
etc.
● The product is developed with the applicable mathematical formulas or
routines used to develop an estimate
● Costs are derived or calculated with a given cost estimating methods
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2. Description of CERMAS 1.0
● The system is designed to map the architecture of a system into
corresponding cost elements based on reliability, availability and
maintainability of the components.
● Each part of the system is configurable in its subcomponents and the
importance of any component in estimating the cost of system can be
identified.
● To estimate LCC of equipment, the tool accepts the cost inputs such as
acquisition, operation, maintenance and other costs of the equipment.
● The LCC of equipment is the sum of the Acquisition Cost, Operational Cost,
Maintenance Cost and Other Costs. Any revenues accrued shall be deducted
from the LCC. LCC is calculated for various parameters like operating hour
per year etc. Whereever applicable the calculations are done by considering
inflation rate
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3. Description of CERMAS 1.0
● The system uses database for storing the information related to various cost
elements of various equipments and also provides a data base for Equipment
details.
● Generally LCC is done by a particular scientist at a given point of time, hence
data base is created with author name (scientist) as the main element to
retrieve the details of the equipment, costs etc.
● The CERMAS 1.0 software contains several modules. They can greatly enhance
the calculation the LCC of the equipment or system. Users can choose these
modules according to their needs to calculate the LCC of a system
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4. The Main Features of CERMAS
● Equipment Tree Structure (ETS)
● Equipment Data
● Acquisition Cost
● Maintenance Cost
● Operational Cost
● Other Cost
● LCC Calculator
● Sensitivity Analysis
● Distributions
● Formulae
● Charts
● Reports
● Currency Converter
● Database Back-up
● Scientific Calculator, Help and FAQ’s
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5. The Main Features of CERMAS
● Equipment Tree Structure (ETS)
● Equipment Tree Structure (ETS) contains the list of components to the left side of
the CERMAS 1.0 Main Screen. In particular the user is required to select
Equipment/Organization from ETS
● Equipment Data
● Equipment Data Module deals with the component details of a systems used in the
LCC Estimation. This module allows the user to input the details of the equipment,
such as name, model etc.,
● Acquisition Cost
● Acquisition Cost Form allows the user to enter acquisition cost parameters to
calculate acquisition cost. In this module the user can enter the inputs for the
various acquisition cost parameters such as Basic Cost, Up gradation Cost, Initial
Spare Cost, Packaging & Forwarding Cost etc.,
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6. The Main Features of CERMAS
● Maintenance Cost
Maintenance Cost Form allows the user to select the type of the maintenance cost:
● Annual Maintenance Cost
Annual Maintenance Cost Form allows the user to enter maintenance cost parameters
to calculate Total Maintenance cost.
● Annual Breakdown Maintenance Cost
This form allows the user to enter breakdown maintenance cost parameters to
calculate Total Breakdown Maintenance cost
● Annual Schedule/Preventive Maintenance Cost
Annual Schedule/Preventive Maintenance Cost Form allows the user to enter
schedule/preventive maintenance cost parameters to calculate Total
Schedule/Preventive Maintenance cost.
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7. The Main Features of CERMAS
● Variable Maintenance Cost
Variable Maintenance Cost Form allows the user to enter maintenance cost
parameters to calculate Total Maintenance cost.
● Variable Schedule/Preventive Maintenance Cost
Variable Schedule/Preventive Maintenance Cost form allows the user to
enter schedule/preventive maintenance cost parameters to calculate
variable Schedule/Preventive Maintenance cost.
● Variable Breakdown Maintenance Cost Form
Variable Breakdown Maintenance Cost form allows the user to enter
breakdown maintenance cost parameters to calculate variable Breakdown
Maintenance cost.
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8. The Main Features of CERMAS
● Operational Cost
● Operational Cost Form allows the user to enter operational cost
parameters to calculate the Annual Operational Cost.
● Also operational cost module permits the user to enter the inputs for the
equipment based on the following sample questions:
1. How much fuel or power consumed by equipment, if applicable both?
2. How many crew and support crews needed to operate the equipment?
3. How much the cost of the crew as well supports crews?
4. How much the Operational infrastructure, training, admin cost with
respect to the equipment?
5. Any miscellaneous cost?
6. Unit of cost calculation for example: year, week.
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9. The Main Features of CERMAS
● Other Cost
Other Cost module is useful when some of the input costs are not covered in
the above cost modules. This module allows the user to provide the details
of various cost elements such as the cost of up gradation, disposal cost etc
● LCC Calculator
LCC Calculator Form allows the user to view LCC of System (Organization)
or Equipment describing various cost parameters incorporated in various
Cost modules.
● Sensitivity Analysis
This module is used to analyse the LCC variation for selected equipment by
varying the cost percentages associated with that equipment
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10. The Main Features of CERMAS
● Distributions
● The Distributions used for Simulation are Exponential, Triangular, Uniform
● User can select a particular distribution to simulate the various cost parameters like
Acquisition Cost, Operational Cost, Maintenance Cost and LCC based on MTBF,
MTTR and Availability values.
● Formulae
● The mathematical formulae used to estimate LCC contains the following variables:
● Availability Rate
● MTTF/MTBF
● Dormancy
● Missile Reliability
● Net Present Value (NPV)
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11. The Main Features of CERMAS
● Currency Converter
● The Currency Converter Screen helps to exchange currency rates. It is the
value of a foreign nation’s currency in terms of the home nation’s currency
● Database Back-up
● The “CERMAS 1.0 Software” uses MySQL 5.0 as the DBMS of choice. The
DBMS software will provide a backup capability to ensure protection of
the data in the DBMS. In addition, the DBMS software provides a
transaction recording feature that can be used to keep track of all
transactions during normal operation.
● Charts
● This module helps the user to generate various types of charts like Bar,
Pie, Combination Pie and Water Fall and also to generate various reports
such as Author based, Equipment Costs, LCC of equipment and
organization and Equipment list.
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12. The Main Features of CERMAS
● Reports
● Author Based
● Acquisition Cost
● Operational Cost
● Maintenance Cost
●Annual
●Variable
● Equipment List
● Equipment Costs
● Acquisition Cost
● Operational Cost
● Maintenance Cost
●Annual
●Variable
● Equipment Data
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● LCC
● Equipment
● Organization

13. The Main Modules CERMAS
● User Module
● Equipment Data Module
● Acquisition Cost Module
● Maintenance Cost Module
● Other Cost Module
● LCC Calculator Module
● Output Module
● Database Management System Module
● Distributions used for Simulation Module
● Formulae Module
● Currency Converter Module
● FAQ’s and Help Modules
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14. Sample Screens
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