Traditional costing models for new systems and new buildings in industry, defence or government, have tended to focus on the costs of acquisition and implementation, with scant regard for the costs of running the system or decommissioning after use. The pressure to minimize expenditure and provide value for money from reduced resources means that complex projects have to encompass a wide range of often conflicting issues and interests. Systems Lifecycle Cost-Effectiveness shows how to manage the difficulties that can arise. Optimizing the system lifecycle cost-effectiveness is complex and influenced by many factors. Massimo Pica presents a variety of models for calculating cost, benefits and risk in projects, and explains how the human factors associated with a system's design and consequent value are as important as the technical costs associated with its construction or creation. This comprehensive text can be used by students, experienced system engineers, cost analysts and managers to improve their understanding of the wide range of issues involved in the evaluation of system life cycle cost-effectiveness.
Massimo Pica graduated in Chemical Engineering at 'Sapienza' University in Rome, Italy. He retired from active service with the rank of Brigadier General in the Corps of Professional Engineers of the Italian Army. Throughout his career Gen. Pica built up significant experience in Project Management, and especially Project Cost Management, as he participated in a number of NATO and international programs for the design, development and production of advanced defence systems. His current activities are in the area of specialist training on Project Management and Economic Engineering. He is a member of European Council of Construction Economics and of International Cost Estimating and Analysis Association.
Contents: Foreword, Arthur Griffiths; Foreword, Marcel Smit; Preface: technology, innovations and the human side of systems. Part I Basic Concepts: Systems design and the characterization of systems requirements; The life cycle of systems; Economic principles and applications of life cycle cost concepts, life cycle cost, system effectiveness and figures of merit; Fundamentals of life cycle cost analysis; Fundamentals of LCC estimation; Selection of computer-based models for cost calculations; Conditions of uncertainty and risk in life cycle cost analysis. Part II Detailed Approach - Selected Applications: Criteria and methodologies for life cycle cost estimation; LCC evaluation for system software; Applications of 'activity based costing' concepts; Economic aspects of 'system-of-systems engineering'; Appendices; Bibliography; Index.