Life cycle cost model for acquisition of automated systems

The analysis of the feasibility for acquiring automated systems requires the engineer to estimate the future costs and benefits through forecasts and/or predictions. The uncertainty of the future makes the engineer consider a set of alternative capital investments so that the best solution to the problem can be obtained and implemented. The best solution can be obtained by evaluating the active life cycle cost of the automated system to be acquired. The system active life cycle includes procurement, operation, maintenance and retirement (phase-out) activities. The objective of this paper is to: (i) propose a breakdown structure identifying the main activities and sub-activities for the active life cycle of automated systems, and (ii) construct a discounted cost model to calculate the total cost for the active life cycle of automated systems. Comparison between the results obtained using the proposed cost model and the real cost for the system active life cycle shows a difference error of 15%.