What percent of the total ownership costs of a mass-produced system occur late in the life cycle due to operations and support costs?

In the context of program management, particularly for mass-produced systems, it is vital to understand the distribution of ownership costs throughout the life cycle of the system. The percentage of total ownership costs that occur late in the life cycle emphasizes the importance of operations and support costs, which typically comprise a significant portion of a system’s total expenses once it is deployed.

Choosing the range of 65-80% reflects the reality that after the initial development and production phases, the long-term costs associated with operating, sustaining, and supporting a system become predominant. These costs include maintenance, repairs, and logistical support, which tend to accumulate significantly over time, especially as systems age and require more resources to maintain operational effectiveness.

This highlights a critical aspect of program management: planning and budgeting for the total life cycle costs rather than just focusing on upfront development and production. It underscores the importance of considering long-term operational strategies and support mechanisms that can help mitigate these late-life cycle costs. By understanding this significant allocation of costs, program managers can make more informed decisions regarding resource allocation and planning, ultimately leading to more sustainable and cost-effective program management practices.