Abstract
Major assets such as buildings, infrastructure and defence systems are long term investments that require many outsourced sustainment activities to maintain satisfactory performances over their service life. When multiplied by the number of years that the sustainment is planned to be undertaken, the contracting cost is high. Many business processes are established to govern these asset sustainment activities and eventually become the source of inefficiency. This paper analyses the performance of these processes using a performance driven approach. Combined with input data of requests for engineering change in similar assets, this paper evaluates a new business process redesigned from an existing process to achieve significant savings in total cost of ownership as well as improving other non-financial performance indicators.
Highlights
Sustainment is a term that is commonly used by defence organisations meaning activities that provide services such as maintenance, engineering, supply, configuration management, replenishment of consumable items and disposal, in order that the asset can be operated at its best possible condition.[1]
Is Total Cost of Ownership (TCO) an appropriate performance indicator to be used in assessing sustainment contracts? Does it represent the baseline information reflecting a plan for sustainment activities for years to come?
This paper explored answers to two questions: 1. Is TCO an appropriate performance indicator to be used in assessing sustainment contracts?
Summary
Sustainment is a term that is commonly used by defence organisations meaning activities that provide services such as maintenance, engineering, supply, configuration management, replenishment of consumable items and disposal, in order that the asset can be operated at its best possible condition.[1] These activities are applicable to nondefence environments. When a building is in use, many associated services which are often categorised in terms of facilities management, operations and maintenance are established. These services work closely with external sustainment service providers in ‘architecture, engineering, construction’ and are integrated with the building’s life cycle management.[2] Sustainment activities have broader implications. Kulakov and Baronin[4] investigated new concepts in energy efficiency from the building’s life cycles perspective with the aim to improve both construction and operational costs
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
