9 isikveren computer aided business case assessment

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    Dr Askin T. Isikveren

    Director, MSc Integrated Aerospace Systems Design

    Director, Engineering Design Degree ProgrammeDepts of Aerospace Engineering & Engineering Mathematics

    email: [email protected] & [email protected]

    Computer-aided Business Case

    Assessment in Engineering Design

    Education

    March 2009

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    Business Case in Engineering Design EducationGalorath Conference 2009

    The Business Case

    Ref: VKI Lecture SeriesA US Perspective on FutureCommercial Airplane Design

    McMasters, 2005

    In all engineering initiatives

    the only acceptable basis for

    launching a [product]development programme

    is one in which low risk,

    high ROI and shortest

    possible timeline is secured Up to 80% of the life-cycle cost

    of most high valued-added engineered

    products is incurred during the conceptual

    design phase By the time completion of the design and development stage occurs

    95% of the product cost is fixed and most of the development cost is

    spent

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Are categorised by:

    Long investment periods

    Outgoings over many years Income over many years

    Large and frequent expenditures

    Significant risk factors

    It requires:

    Annual Cash flows over many years

    An account for the time effect on the value of money

    Determination of the value of the investment in terms of todaysMoney NPV

    The return needs to be compared to the fixed return of the other

    investment to determine which is most suitable

    Complex Investment Decisions

    Decrease net cash outflow

    Create Positive cash flow earlier

    Increase net cash inflow

    Decrease net cash outflow

    Create Positive cash flow earlier

    Increase net cash inflow

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    Business Case in Engineering Design EducationGalorath Conference 2009

    SEER-H Software: Why is it useful? Used widely in industry US DoD, Boeing (e.g. the AH-

    64A Apache Rotorcraft), Ford, Northrop Grumman

    Provides development,production, operations and

    support estimates for

    systems and sub-systems(also estimate integration costs)

    Can input detailed part information, such as complexity or

    finishing details, to improve estimate

    Business case can now be coupled into the multi-objectiveoptimisation problem best and balanced design

    Business case can now be coupled into the multi-objectiveoptimisation problem best and balanced design

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Aerospace Vehicle Design & Systems Integration 3F/4F

    Each Group (10-12 members) is required to carry out the design

    of a complete aircraft to the given Design Specification The study is competitive with each Group attempting to produce

    the best, balanced design

    Support Each Group has a academic advisor

    General support is given by a team of

    active and retired externals

    Duration

    The project is 16 contact weeks, spanning early-Oct to mid-Feb

    Engineering Design Education:AEROSPACE Group Design Project

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    Business Case in Engineering Design EducationGalorath Conference 2009

    The Greener By Design committee have proposed thatinstead of flying

    long distance routes non-stop, significant fuel savings could be achieved

    by flying these routes astwo or more shorter flights, stopping en-route to

    refuel.

    The purpose of this task is to design

    a passenger aircraft to compete

    against mid-sized non-stop, long-

    range aircraft, butoptimised for

    multi-stop operations, and hence a

    shorter design range requirement.

    The aircraft must meet the regulatory,

    economic and environmental needsof operators for an intended

    Entry into Service date of 2020.

    UB2009F Project Brief

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    Business Case in Engineering Design EducationGalorath Conference 2009

    UB2009F Project Competitors

    B757-300 B767-300 A330-200

    B787-8 A350-800

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    Business Case in Engineering Design EducationGalorath Conference 2009

    UB2009F Project Low-risk, Low-cost Option

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    Business Case in Engineering Design EducationGalorath Conference 2009

    UB2009F Student Project Proposals

    GRP 1F

    GRP 3F GRP 4F

    GRP 2F

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GRP 2F Family of Aircraft

    Range(nm)

    Pass

    engers

    300

    250

    200

    3200nmrange

    300/406passengers

    148TMTOW

    4000nmrange

    250/338passengers

    143TMTOW

    6000nmrange

    200/284passengers

    152TMTOW

    Range(nm)

    Pass

    engers

    300

    250

    200

    3200nmrange

    300/406passengers

    148TMTOW

    4000nmrange

    250/338passengers

    143TMTOW

    6000nmrange

    200/284passengers

    152TMTOW

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GRP 2F ModellingInput

    EquipmentType Application Platform AcquisitionCategory Weight MaterialComposition Quantity MeanTimeBetweenFailure

    (electricalcomponents)

    Output

    DevelopmentCost ProductionCost EquipmentSupportCost SystemLevelCost DevelopmentLabourHours

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GRP 2F Modelling Results

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GRP 2F Modelling Results

    Viridis aircraft were designed with:

    Common wing, empennage, undercarriage and engines

    SEER-H software was used to calculate the product development cost if

    there was no family commonality and it was found that: V200 production unit cost of V200 was reduced by 5.4% and V300 by 4.1%

    Breakeven analysis was also carried out using SEER-H software

    Analysis shows the return can be boosted USD4B if family commonality exists

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GRP 2F Scope-Schedule Planning

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    Business Case in Engineering Design EducationGalorath Conference 2009

    The Engineering Design Degree Programme

    Future Leaders of Multi-disciplinary [Large-scale]

    Engineering Projects

    How?

    Capture a broad systems architect understanding engineering, business, social/environmental issues

    Foster excellent communication skills

    Acquire experience in working in multi-disciplinary teams

    Specialist competence in one sub-discipline of Engineering

    Gain experience in applied and practical engineering

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Engineering Design: Industrial Partners

    GE Aviation Propellers & Avionics

    Galorath as Software Partner

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Engineering Design Education:

    ENGINEERING DESIGN Industrial Group Projects

    A genuine back-burner issue that needs resolution

    Multi-disciplinary team with headcount of 5 students

    Compatible with the man-power, computing and workshopresources of the University

    Spend limit of 2,000 from the University plus support

    from the Industrial Sponsor Two-year timescale

    First year emphasis on design candidates for down-select,

    experiments rigs and/or modelling/simulation tools

    Second year focuses on detailed design, integration,

    optimisation and business case

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Y0102 Cohort: Completed Y0506 (inaugural) Motorola: Robotic Security Guard

    Robotic investigator able to navigate autonomously around a mappedenvironment, log and avoid obstacles, and identify objects of interest

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Y0203 Cohort: Completed Y0607 Arup: Redeveloping Blackfriars Station

    Innovative redevelopment of existing Blackfriars Railway Station into a

    transport interchange ready for the increased growth demands

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Y0304 Cohort: Completed Y0708 Airbus UK: Multi-modal Freight Hub

    Feasibility and preliminary design of a multi-modal freight hub at the

    former RAF base at Lyneham

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Group Industrial Projects Completion Y0809 Arup: Elevated Ride / Transport System between

    mainland and Lulu Island in Abu Dhabi

    Babcock: Mechanical Handling System for Nuclear WasteFlasks

    GE Aviation: Novel Propeller Pitch Change Mechanism forOpen Rotor Aero Engine

    HP Labs: Personal Eco Footprint Reduction System

    Motorola: Hydro Pico Generator for Mobile Phone BaseStation

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Project Objective To reduce the cost of ILW interim storagefacilities by simplifying the mechanical handling of waste andconsidering different methods of storage

    Problems with current method: Increased final volume of waste

    containers are still extremelyradioactive

    Storage facilities very expensive Solution advantages:

    Volume reduction techniques,such as vitrification

    Dispense with complicated mechanical

    handling systems Less expensive storage facilities

    Designed for low cost production

    BABCOCK: Nuclear Waste Flask

    CurrentILWStorageProcess

    Standardisedpackageexterior

    Standardisedshieldedlid

    VariableSteelshotconcreteshielding

    Wasteliner

    ProposedShieldedPackage

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    Business Case in Engineering Design EducationGalorath Conference 2009

    BABCOCK: Nuclear Waste Flask

    Project

    Cost

    Time

    Largeconstructioncost

    ofstoragefacility

    Overall

    cost

    saving

    Reduced

    initial

    cost

    ThroughLifeCostofanInterimILWStorageProject

    CurrentStorageMethod StorageUsingShieldedContainers

    Business case objectives: Prove total cost of ILW interim storage is reduced

    Show reduced yearly expenditure, resolving funding issues

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GE AVIATION [DOWTY]: Open Rotors Investigate the feasibility

    of adopting open-rotor

    layout for 150-200 seat,single-aisle aircraft, EIS

    around 2018

    A TSFC (fuel burn) dropof 25% must be met or exceeded

    The increase in maintenance costs must not exceed the

    benefit gained from efficiency improvements

    Simple, reliable mechanism for blade pitch change is

    required

    Then Now.

    The Easyjet Ecojet

    Jet?

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    Business Case in Engineering Design EducationGalorath Conference 2009

    GE AVIATION [DOWTY]: Open Rotors

    No.perEngine

    Weightperunit(kg)

    WeightperEngine(kg)

    DevelopmentCost($)

    ProductionCostperunit($)

    Costperengine($)

    Nacelle 1 200 200 15,600,000 200,000 200,000

    EngineCore(basedonexistingtech)

    1 2500 2500 318,000,000 5,800,000 5,800,000

    HydraulicActuators 18 1.2 21.6 2,000,000 1,500 27,000HydraulicPump 2 10 20 1,800,000 11,500 23,000PropBlades 18 10 180 8,500,000 6,500 117,000ElectricalHarness 1 10 10 350,000 4,000 4,000Transformer 2 130 260 23,400,000 116,000 232,000

    SystemIntegrationCosts 122,200,000 745,000Totals 43 3191.6 491,850,000 7,148,000

    No.perEngine

    Weightperunit(kg)

    WeightperEngine(kg)

    DevelopmentCost($)

    ProductionCostperunit($)

    Costperengine($)

    Nacelle 1 200 200 15,600,000 200,000 200,000

    EngineCore(basedonexistingtech)

    1 2500 2500 318,000,000 5,800,000 5,800,000

    HydraulicActuators 18 1.2 21.6 2,000,000 1,500 27,000HydraulicPump 2 10 20 1,800,000 11,500 23,000PropBlades 18 10 180 8,500,000 6,500 117,000ElectricalHarness 1 10 10 350,000 4,000 4,000Transformer 2 130 260 23,400,000 116,000 232,000

    SystemIntegrationCosts 122,200,000 745,000Totals 43 3191.6 491,850,000 7,148,000

    Development (0.8%)

    Production (40.5%)

    Operating Site (22.5%)

    Total Equipment Support

    (31.2%)

    Total SystemLevel Cost

    (5.0%)

    GE UDF Engine Program: Life Cycle Cost Allocation

    Chartshowingthebreakdownofthelifecyclecostof~$48bil

    Model based on best case

    of ~400 aircraft orders a

    year

    Initial engine production

    cost estimate of $7.1M

    similar to CFM56 list price

    of $7.0M

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Many conflicting factors

    More civil works more reliable water flow smaller system overall

    Complex electronic control higher cost but higher system efficiencies

    Simplified turbine runner lower cost but reduced efficiency

    Considerations include:

    Site Selection

    Dam Materials and

    Weir Orientation

    Turbine Housing

    Turbine Runner

    Electrical Generator

    Battery System

    MOTOROLA: Pico-Hydropower

    Cost

    Performance

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    Business Case in Engineering Design EducationGalorath Conference 2009

    Y0607 Cohort: Completion Y0910 & Y1011 Wind-powered Vehicle design, build and test a vehicle

    to carry one person that can drive directly into the wind

    Submit entries for Aeolus Competition in the Netherlands