Life cycle cost analysis is aimed to monitor and minimize total cost. The LCC analysis is used by managers, decision makers, ILS engineers for system acquisition, proposal writing, management, development, production and through-life support.
Cost-effectiveness is an evaluation involving both performance and cost. The best performing system may not be the most cost effective one. Therefore, when analyzing the acquisition of any complex system under uncertainty, thorough sensitivity analysis is required to generate robust results. The methodology presented in this paper demonstrates how to evaluate cost-effectiveness for a system that involves both measurable and assessed characteristics for better decision making.