IntroductionOperations costs are an important component of overall system life-cycle costs. An Operations cost estimate provides data on which to base decisions through all mission phases from conception through operations. Various models exist on which to base such an estimate. In this paper, some practical experiences are shared, describing the evolution of cost estimates over the RADARSAT-2 Program development phases and how early cost estimates were used to help drive program development decisions as the program unfolded. These are compared with some recent experience on SmallSat projects also in development at MacDonald Dettwiler and Associates. Finally, ideas for the way forward with these estimates are presented. Cost as a RequirementGiven commercial endeavours and continuing pressure to reduce overall program costs of government programs, operations cost has been an increasingly scrutinised item of overall program costs. During mission conception activities, trades are performed which essentially fix the order of magnitude of operations costs within a particular program. Whether stated or unstated in requirement form, operations cost is a system requirement. For example, Group A can operate this satellite for us, Group B can process this data for us or we can find money in the budget for this activity, we can automate that function, the next version is a silver bullet, etc. When a mission is conceived, someone has an operations cost envelope in mind -even on the back of an envelope.For the fortunate, some guidance is provided with the requirements of the mission up front. A target is available in the same manner as mass, power, resolution, bandwidth, spectral purity, and so on. This target can then be decomposed or allocated. The estimated cost can be rolled up and dealt with as a technical performance measure (TPM). Such a TPM can be treated and tracked, through system budgets Downloaded by GEORGE MASON UNIVERSITY on June 20, 2016 | http://arc.aiaa.org | and at design reviews in a similar manner to other TPM. For those commercially sensitive estimates, the actual dollar values can be normalised. For example, a TPM could be expressed as a percentage of the target.Given such an estimation exercise, those responsible for generating and reviewing the operations cost model can collect cost metrics such as dollars per kilobit per month or labour rates or software support rates. Such metrics can be used during development to prioritise requirements, assist operations planning, assess design progress, and, for commercial missions, provide inputs for business planning. Operations Costs modellingCost modelling methods can be divided into a few main categories. These methods are outlined in the table below. Model Description Use Parametric Models based on statistically observable attributes of historical data. Models and methodology are well described in available literature. Models exist for constellations, 'BigSats' and SmallSats. Trades during mission conception and early system design. Can be part of overall mi...
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