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 ARP is not intended to be used as a standard or legal document but is compiled to help the increasing number of people who want to compute a PHM Cost Benefit Analysis prior to implementing such a system on a platform.
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