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1
Utility
a measure of the power of a good or
a service to satisfy human wants
Producer Goods
the good and services that satisfy
human wants indirectly as part of the
production or construction process.
Tools, chips, materials,,,
3
Fixed Cost
Variable Cost
Marginal Cost
Sunk Cost
% of Cost
committed
100%
75%
Life-cycle cost
all costs that
occur over the
life cycle.
50%
design operations
0%
N
E
E
D
Conceptual/
Preliminary
design
Detail design
Production/
+ development
Construction
Phase-out/ Disposal
6
R&D
Sys/Product Mgt
Product Planning
Engineering
Design
Design Documents
Sys/Product
Software
Sys/Product Test &
Evaluation
Product/Construct
O&M
Production/Construction Mgt
Sys/Prod Life
Cycle Mgt
IE & O analysis
Sys/Prod O
Manufacturing
Sys/Prod
Distribution
Construction
Quality Control
Initial Logistics
Support
Sys/Prod M
O&M Training
Phase Out
Disposal of
non-repairable
items
Sys/Prod
Retirement
Material recycle
Documentation
Sys/Prod
Modifications
7
10