PPRuNe Forums - View Single Post - Improving Direct Operating Cost (DOC) help please
Old 6th Feb 2013, 11:11
  #41 (permalink)  
stallfail
 
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Chill out toffeez.......

That is the biggest amount of academic bull**** that I've heard in my 40 years in the industry. Only the Lufthansa Cost Method was as ridiculous.
Great, than Bearcat will very probably succeed !!!

You missed the point, mate. It does not matter if the task is related to real life or not, it appears to be a seminar, where some worldly innocent tutor comes up with a ridiculous task which has to be solved by Bearcat.................

Stallfail,what the fuk has cabin crew cost got to do with the problem in hand? Bearcat has to concentrate on the changes, not worry about what stays the same. Luckily academics don't run airlines. At least not successful ones.
Just come down and read my post, I have simply listed the DOC items and did not comment on anything else........


Look at Bearcat's inital post:
Hi guys,

I need to improve the DOC of the Fokker F27 specifically in terms of the avionics and control system (if applicable). Searching google for an exact definition of aircraft DOC is proving a bit difficult as most sites just give some formula to calculate it but don't really mention anything specifically in terms of time-scales involved.

We are told that modifications have to be cheap because of DOC. So how do I justify a new avionics suite for the F27 to improve DOC? Does it need to pay for itself in a week, a month, a year?

And the second thing is, would it be feasible to change the control system to something else (e.g. FBW) for lower maintenance costs? Again, I am not 100% by which point a modification has to pay for itself.

(P.S. I know its stupid "improving" the F27 as its obviously a century behind modern technology but nonetheless that's the little assignment I need to do).

In my initial reply, I gave a definition of DOC (academically/ iaw. IATA) and stated that the LCC concept should apply,instead of the standard Cost Benefit Analysis methods.

Simple : Focus on Modification costs, Changes of operating costs, changes of revenue, length of life cycle.

Bearcat, there are defined ways of cost and potential saving estimations for aircraft modifications, although you need to collect a lot of data.
Apparently your pro did not provide relevant information, so you are not able to provide accurate numbers ...............

LCC-OPS model:

1)Modification Cost (Cm)
by calculating Labour costs, Material costs, Tool costs, Downtime costs

2) Changes of operating cost per trip (Co)
by calculating Changes of fuel and oil cost (Cof), Changes of fuel cost due to weight changes (Cofw), Changes of fuel cost due to parasite drag (Cofd), Changes of fuel cost due to (direct) power consumption changes (Cofp), Changes of fuel cost due to changes of fuel up-lift (Cofu), Change of oil cost (Cofo), Change of maintenance cost (Com), Changes of routine maintenance cost (Coms), Changes of none routine maintenance cost(Comn), Changes of unscheduled maintenance cost (Comu), Changes of maintenance dependent cost (Comd), Changes of required spares (Comp), Annual changes of depreciation cost (Cod)

3) Changes of revenue
Changes of revenue due to availability changes (Ra), Annual changes of revenue due to changes of scheduled maintenance time (Ras), Changes of revenue due to Changes of none routine maintenance time (Ran), Changes of revenue due to Changes of unscheduled maintenance time (Rau), Changes of revenue due to Changes of functional performance (Rf), Changes of revenue due to capacity changes (Rfc), Changes of revenue due to speed changes (Rfs) Note:Block speed normally depends on ATC
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