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ARP6275 - Development of a Business Case Analysis for IVHM systems

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Document Number: ARP6275
Project Initiation: 04-10-2012
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Sponsor Name: Chris John Pomfret
Development of a Business Case Analysis for IVHM systems
This AIR provides an insight into how to approach a cost benefit analysis (CBA) to determine the return on investment that would result from implementing an Integrated VehicleHealth Management (IVHM) system on an air vehicle. It describes the complexity of features that can be considered in the analysis, the different tools and approaches for conducting a CBA and differentiates between the military and commercial applications. This document is intended to help those who might not necessarily have a deep technical understanding or familiarity with IVHM systems but want to either quantify or understand the economic benefits (i.e. the value proposition) that such a system could provide.
This AIR is being developed to provide insight into how to create a cost benefit analysis to determine the justification for implementing an integrated vehicle health management (IVHM) system. With the considerable advancement of HM tools and capabilities in the past 10 years, more and more operators and fleet managers are asking for ways in which the overall value proposition of installing such a system, be it on in-service equipment or still-in-design systems, can be determined.
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