For a mass-production system, the majority of a system's life cycle costs are attributed to which category?

For a mass-production system, the majority of a system's life cycle costs are attributed to which category?

• A. Research and Development Costs
• B. Operations and Support Costs
• C. Manufacturing Costs
• D. Customer Training Costs

Answer: (B)

The key idea is that the long-term ownership costs of a mass-produced system are dominated by what happens after the product is deployed. While development and manufacturing incur substantial upfront costs, the ongoing expenses of operating, maintaining, repairing, supplying spare parts, updating, and providing customer support accumulate year after year and often exceed the initial price. Over a typical multi-year life, these operations and support activities drive the majority of total life-cycle costs. For example, maintaining availability, coordinating parts logistics, and delivering field service across many units tend to add up far more than the original development or manufacturing outlay. Therefore, operations and support costs account for the largest share of life-cycle cost.

The key idea is that the long-term ownership costs of a mass-produced system are dominated by what happens after the product is deployed. While development and manufacturing incur substantial upfront costs, the ongoing expenses of operating, maintaining, repairing, supplying spare parts, updating, and providing customer support accumulate year after year and often exceed the initial price. Over a typical multi-year life, these operations and support activities drive the majority of total life-cycle costs. For example, maintaining availability, coordinating parts logistics, and delivering field service across many units tend to add up far more than the original development or manufacturing outlay. Therefore, operations and support costs account for the largest share of life-cycle cost.