Costing aircraft components


When we think about the cost of an aircraft, we tend to think of the cost of buying the product rather than the costs of running it! British Aerospace’s service to the customer does not stop at the aircraft acquisition stage, when the aeroplane is sold to the customer. If anything, this is when the customer relationship begins. This case study focuses upon the processes involved in costing aircraft components. Given the high specifications to which designers have to work, it is important to develop a price for customers which provides ‘Customer Satisfaction at Competitive Cost.’ British Aerospace is a major player in the world aviation industry. Its Military Aircraft Division aims ‘to remain number one in Europe and World Leader in the Military Aircraft Business.’ The design challenge The challenge to design teams is to design an aircraft that achieves maximum mission effectiveness at minimum cost to the customer. Typically, a military aircraft has a service life of over 30 years. The total operation and support costs such as those involved in owning and operating an aircraft (spares, repairs and servicing) over this time, outweigh the initial cost of acquisition. Therefore, total Life Cycle Cost (LCC) must be minimised…

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