Estimating On-condition Direct Maintenance Cost (DMC)

Aftermarket support has become a key component of cost and competitiveness in the rotorcraft industry. Both the operator and the rotorcraft manufacturer play a role in aftermarket support. Many rotorcraft original equipment manufacturers (OEMs) are offering fixed price maintenance service programs in their after-market support programs. Since product support may last well over two decades, the desire for low direct operating cost (DOC) and lower life cycle cost (LCC) has become a more visible consideration in the rotorcraft design phase. Direct maintenance cost (DMC), forms a significant part of the DOC and LCC. A subset of DMC, On-condition maintenance cost is a category with unspecified maintenance intervals and presents one of the more challenging estimating efforts, particularly on a new rotorcraft program with no history. The approach used for estimating maintenance costs can strongly influence decision making within the OEM while also educating the customer on better maintenance philosophy and planning. Incorrectly minimizing or excluding the effect of on-condition cost (within the DMC estimate) could have a profound impact on operator and service organizations of the OEM. This paper presents a high-level discussion on the potential refinements that can be made to the Helicopter Association International’s Economic Committee’s Guide for the Presentation of Helicopter Operating Cost Estimates 2010. Estimating the on-condition direct maintenance cost for airframe manufacturers is the focus of the discussion.