SAE ARP4176

This ARP provides an insight into how to approach a cost benefit analysis (CBA) to determine the return on investment (ROI) that would result from implementing a propulsion Prognostics and Health Management (PHM) system on an air vehicle. It describes the complexity of features that can be considered in the analysis, the different tools and approaches for conducting a CBA and differentiates between military and commercial applications. This document is intended to help those who might not necessarily have a deep technical understanding or familiarity with PHM systems but want to either quantify or understand the economic benefits (i.e., the value proposition) that a PHM system could provide. This Aerospace Recommended Practice (ARP) provides insight into how to create a cost benefit analysis to determine the justification for implementing a propulsion/engine health management system. The considerable advancement of health management (HM) tools and capabilities in the past 10 years, coupled with some successful applications to legacy and new engines drove the need to re-write the original AIR and provide more specific guidance, thus creating the need for an ARP. Moreover, there has been increasing requests in recent years by potential implementers, both commercial and military, to better understand how to make a convincing business case within their organizations, This, for many, has become the stumbling block that prevents implementation of an Engine Health Management System.