Analysis and Forecasting of Operating and Support costs for F-16 C/D
Franck, Raymond E.
Engelbeck, Marshall R.
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The purpose of this MBA professional report is to examine and present an extended overview of the Total Life Cycle System Management (TLCSM) from the standpoint of USAF and other DoD organizations, and to make available a guide for implementing this concept. The report infers that TLCSM should be the foundation for effective management of complex weapon system such as a multi-role fighter aircraft. The primary objective was to understand the methodological specifics of estimating Operating and Support (OandS) costs for the F-16 fighter aircraft. To facilitate this, the report identifies and analyzes the top cost drivers over the F-16C/D lifecycle. The cost drivers are a major consideration in identifying Reduction of Total Ownership Costs (R-TOC) opportunities. This research also explores forecasting techniques to estimate the Cost per Flying Hour (CPFH). Holt's method appears to have promise as an estimator of future CPFHs. Finally, this report concludes that TOC should be a priority consideration when acquiring a multi-role fighter aircraft such as F-16 and recommends that the Polish Air Force (recent F-16 user) and the Romanian Air Force (potential future user) should establish databases to record OandS costs and should implement R-TOC best practices.
MBA Professional Report
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