Business Case Worksheet
The AVCOM Business Case Worksheet provides an estimated redesign cost by CCA, which can be summed for a specific box or system. These redesign cost estimates can be used to evaluate Redesign Proposals from Suppliers to (1) determine if the redesign cost proposed is reasonable and (2) estimate the Return on Investment (ROI) period if the Redesign is implemented. Cost-Effective Redesign is typically driven by one of three factors: (1) excessive obsolescence, (2) poor reliability, or (3) technology insertion resulting in excessive maintenance and/or repair cost. The Business Case Worksheet provides an estimated obsolescence mitigation cost for a specific period of time. This can be compared to the ongoing maintenance and repair cost to determine when it may be more cost-effective to redesign.
This quick redesign cost estimate can be used as a comparison value (ROI) for systems, boxes or boards where high failure rates are driving up maintenance and sustainment costs. When the difference in maintenance and repair cost before and after the redesign is factored in with the obsolescence mitigation cost, the true ROI can then be determined. The Business Case Worksheet enables management to proactively manage obsolescence by predicting anticipated future sustainment cost for specific systems. They then can implement potentially more cost-effective resolutions than are indicated in the analysis generated at the problematic part-type level.