A manufacturing software engineer at a major

Chapter 6, Problem 6.35

(choose chapter or problem)

A manufacturing software engineer at a major aerospacecorporation has been assigned the managementresponsibility of a project to design, build, test, andimplement AREMSS, a new-generation automated scheduling system for routine and expedited maintenance.Reports on the disposition of each service willalso be entered by field personnel, then filed and archivedby the system. The initial application will beon existing Air Force in-flight refueling aircraft. Thesystem is expected to be widely used over time forother aircraft maintenance scheduling. Once fullyimplemented, enhancements will have to be made,but the system is expected to serve as a worldwidescheduler for up to 15,000 separate aircraft. The engineer,who must make a presentation next week of thebest estimates of costs over a 20-year life period, hasdecided to use the life-cycle cost approach of cost estimation.Use the following information to determinethe current annual LCC at 6% per year for theAREMSS scheduling system.Cost in Year ($ millions)Cost Category 1 2 3 4 5 6 on 10 18Field study 0.5Design of system 2.1 1.2 0.5Software design 0.6 0.9Hardware purchases 5.1Beta testing 0.1 0.2Users manual dev 0.1 0.1 0.2 0.2 0.06Sys implementation 1.3 0.7Field hardware 0.4 6.0 2.9Training trainers 0.3 2.5 2.5 0.7Software upgrades 0.6 3.0 3.7