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Reducing the Total Cost of Ownership (TCO) for long term defence sustainment contracts is an important goal for defence organisations around the world. A large part of the cost borne by long term sustainment contracts is related to the processes used. These processes require resources to undertake and manage. When these processes are not optimised, resources may not be focussed on the right areas, the cost will be higher than it needs to be. This paper establishes a TCO model of the existing engineering change process. This model is simulated in a case study sustainment contract of 24 years and the TCO of this process calculated. By optimising the engineering change process, the TCO can be reduced. The method of analysis provides concrete scenario data for decision makers to adopt the new process and reduce TCO.
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