Cost-Benefit Analysis Methodology for PHM Applied to Legacy Commercial Aircraft

This paper presents a methodology to perform cost-benefit analysis on the application of prognostics and health management (PHM) for existing (legacy) commercial aircraft. The methodology takes into account the characteristics of the commercial aircraft operation business to yield estimates of the economic feasibility of the application of the technology to these platforms. Included among such characteristics, are the strong focus on the improvement of aircraft dispatch reliability and reduction of maintenance costs, the lack of provisions for PHM systems on legacy aircraft and the availability of maintenance and operational field data. The PHM benefits range from improved troubleshooting, passing through condition-based maintenance scheduling, to the optimization of the logistic supply chain. The formulation accounts for costs, from development to implementation, and risks intrinsic to such technologies. Means to quantify each benefit and each cost are outlined. In most cases, this quantification depends on specific details of the aircraft or internal processes of the aircraft operator. The paper presents guidelines to develop such calculations and the tools that may be used to analyze the results. The final product of the methodology is a cost- benefit model which provides insight to the aircraft original equipment manufacturer (OEM) and to the aircraft operator on how PHM technologies should be applied in order to maximize their bottom lines.