Cost Benefit Analysis for Incorporation of Prognostics
Prognostics and Health Monitoring (PHM) technology report information about the operational condition of a system or product. This information can be used to notify the user of necessary service, warn of impending failure, order replacement parts and\or consumables, notify Police and Fire personnel of an emergency and in some cases save maintenance costs by reducing unnecessary maintenance or service. A Cost Benefit analysis provides the basic cost information for a customer to determine if the benefits of incorporating PHM into a system are worth the cost. Accurate forecasting of PHM implementation cost early in the program is crucial to determining whether or not to implement PHM into a system or product. Incorporating PHM into a system once design begins is usually cost prohibitive. This article will demonstrate a Cost Benefit analysis for PHM and how to use a model to produce an accurate PHM Cost Benefit analysis.
Jerry Le May
Raytheon Missile Systems
Jerry Le May is a Senior Multi-Discipline Engineer at Raytheon Missile Systems in Tucson, AZ. He is performs spares predictions and cost analysis for various programs. Jerry has performed Repair Level Analysis, Repair\Discard analysis, Return on Investment analysis, Cost Benefit analysis and Operations & Support cost analysis on numerous defense programs with a variety of cost analysis tools including CASA, COMPASS, customer models and his own spreadsheet models. Prior to Raytheon Jerry performed logistics analysis on aerospace programs ranging from the Lockheed L-1011 airliner to the International Space Station. Jerry has a Bachelors degree in Earth Science from California State University, Fullerton.