Annualized Life Cycle Cost Research Articles

Take ‐ Acquiring The Environmentally Sound Ship Of The 21st Century

ABSTRACTDepartment of Defense (DoD) program managers are increasingly challenged with the difficulties of balancing the risks associated with cost, schedule and performance in an environment of extreme competition for increasingly scarce resources. Requirements associated with environmental, safety and health (ESH), in the context of thirty to forty‐year service lives have not been consistently, or in some cases adequately, addressed in DoD programs.Environmental protection (EP) requirements generally do not fit the normal requirements generation and product synthesis model typically applied to weapon system development. As with all requirements, early identification is the key to integration into the total system. Recognition that EP requirements must be integrated at program conception led to development of the ESH Integration Model by the U.S. Navy Lewis and Clark (T‐AKE) ship acquisition program. Institutionalization of this model has enabled the T‐AKE Program to establish EP performance requirements for the twelve‐ship class that substantially reduce the environmental footprint of the Navy.Compared to the fifteen ships that it will be replacing, T‐AKE will require fifty percent less manning and reduce waste streams by seventy percent enabling an annual life cycle cost savings of $5 million in ashore waste disposal costs. The T‐AKE Program has been the first to achieve the Chief of Naval Operation's vision for the “Environmentally Sound Warship of the 21st Century” through design integration of EP requirements.

Economic evaluation of a solar water heating system

This paper describes different methods of analysis of a solar water heating system to determine its economic viability. The solar fraction, required for this analysis, has been calculated with a stimulation program using hourly meteorological data of Singapore. A measured load profile, representing the average condition, was used for this program. The economic variables have been selected from the trends shown in previous years. When different economic optimization criteria were applied to the CIAS solar system, it was seen that both the life cycle saving and the annualized life cycle cost lead to the prediction of the same optimum collector area of 1200 m 2. The payback period and the internal rate of return analyses also predicted the same optimum collector area of 1000 m 2, which is smaller than that predicted by the method of life cycle costing. For the economic variables used in this analysis, the minimum payback period is about 14 years.