467 Javier Pastor Sánchez Life Cycle Cost Estimation Procedure for a Weapon... Finally, on the basis of the content of the reports that fed into the database and the interviews conducted, we believe that the precision of the cost estimate calculations will depend on the information available, its accessibility and its processing, the rigorous application of an updated cost estimation methodology, the means used by the technical body, the time allocated, the use of lessons learnt and the management of pressure exerted by armed forces on working groups so that the technical bodies issue their reports as swiftly as possible. The lack of precision in life cycle cost estimates could lead to a decision being made that does not meet our needs as part of the best possible economic scenario. CONCLUSIONS AND RECOMMENDATIONS http://revista.ieee.es/index.php/ieee In general: • We have verified that in Spain no information management system exists allowing us to obtain data for total or even partial life cycle costs for the weapon systems we possess. The reliability of the information stored in heterogeneous systems is poor, whilst the effort required to extract and process this information, which is to found in different media and different formats is considerable, since there are problems that arise from collecting the information and then processing and storing it. Moreover, the information acquired from companies is one-sided and provided in formats that are difficult to handle. • Progress needs to be made as regards the symmetry of information with industry. Since 80% of defence invoicing in Spain is concentrated within a limited group of six companies,39 in order to advance this symmetry, it would be advisable to integrate a defence programme management team, which would include cost estimation experts, within the programme management teams in the six main companies that it has contractual relations with. Moreover, the majority of the Spanish public companies who supply the defence ministry are overinflated. The salaries that they pay are higher than the rest of the sector and working conditions are favourable etc. The objective of their directors is to aim to avoid their cost being compared with an efficient cost and thus it is advisable to isolate the additional costs generated by such inefficiencies so that they are covered by the Ministry of Industry. 39 www.defensa.gob.es/politica/armamento_material/industriaespañoladedefensa. La Industria de defensa en España The Defence Industry in Spain. 2010, 2011, 2012 and 2013: EADS-CASA (AIRBUS), NAVANTIA, AIRBUS MILITARY, INDRA SISTEMAS, INDUSTRIA DE TURBOPROPULSORES and SANTA BÁRBARA SISTEMAS are responsible for between 78 and 81% of defence invoicing.
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