Gallup, Shelley P.

The modeling and analysis of total ownership costs (TOC) is a daunting task to say the least. Depending on the system or initiative, TOC can cover dozens, if not hundreds of small items that go into a large basket that is cost. Computer code, hardware, software, maintenance, operations, research, electricity, testing, downtime, acquisition, outage, failure, security, depreciation, training, warranties, licensing, and a multitude of additional items can be associated with the life-cycle and total lifetime direct and indirect costs of a project, program, or initiative. The idea of performing a TOC analysis is typically for the justification of a financial or economic decision, such as determining the project or program's net present value, internal rate of return, return on investment, payback period, and the like; in other words, if a program or initiative should be accepted or rejected based solely on its economic justification.
NPS Naval Research Program
NPS Naval Research Program
Navy
2017