Sharif University of Technology

Department of Aerospace Engineering

Airplane Design II Project

Cost Estimation Phase

RDTE cost report and reduction strategies

AeroNest Team
Amirreza Saeedi
Ali Alipanah
Alireza Alinejad
Rouzbeh Pourjafarian
Mahdi Amiri Bostanabad
Mohammad Sadeghi

Instructor
Dr. Banazdeh

July 2025
 ‫ب‬ Contents

Page Contents
4 ............................................................................................................RDTE cost report 1
4 .....................................................................................................................................................................Introduction

4 ..................................................................................................RDTE Cost Estimation 2

8 ..........................................................................Lifecycle Cost Reduction Strategies 3

9 .................................................................................................................................Resources
 ‫ج‬ ‫فهرست جداول‬

‫صفحه‬ ‫فهرست جداول‬

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 4 RDTE cost report

1 RDTE cost report

Comprehensive RDTE Cost Report and Lifecycle Cost Reduction Strategies for
AeroNEX

Introduction

Successful commercialization demands not only superior technical performance but

also strict cost control across development, production, and operations. This report
presents a detailed estimation of Research, Development, Test & Evaluation (RDTE)
costs for AeroNEX, followed by three comprehensive strategy areas—aerodynamic
and structural optimization, manufacturing and assembly efficiency, and operational
cost management—to minimize lifecycle expenses and ensure sustainable
profitability.

2 RDTE Cost Estimation

Research, Development, Test & Evaluation (RDTE) represents the foundational
investment phase in any aircraft program, encompassing everything from initial
concept studies through detailed design, prototype fabrication, ground and flight
testing, and certification activities. As outlined in the “Cost Estimation” reference,
RDTE costs directly determine both the time-to-market and the technical maturity of
the final product. Underestimating these expenditures can lead to schedule overruns,
technical shortfalls, or regulatory delays, while overestimating ties up capital that
could otherwise be deployed in production or marketing. For AeroNEX—a
hybrid-electric air taxi targeting rapid entry into the urban air mobility sector—
 5 RDTE cost report

accurate RDTE forecasting is especially critical. It not only informs budgetary

approvals and stakeholder confidence but also shapes downstream decisions on
tooling, supply-chain commitments, and test-program scope. In the following
section, we apply the parametric formulas prescribed in the Cost Estimation
document to derive a defensible RDTE budget for AeroNEX, ensuring that every
phase of design, development, and evaluation is adequately funded and aligned with
our aggressive commercialization timeline.

Engineering Design Cost (CAED)

Following Roskam’s parametric method:

MHRAED = 0.396 × WAMPR0.791 × Vₘₐₓ0.791 × NRDTE0.183 × FDiff × FCAD
CAED = MHRAED × REM
With project inputs:
• WTOW = 5,120 lb → WAMPR ≈ 2,538
• Vₘₐₓ = 180 kn
• NRDTE = 2
• FDiff = 1.0
• FCAD = 0.8
• REM = $2/hr
Certainly! Here's the English version of your justification:

Justification of Parameter Selection for RDTE Estimation in a University

Project
In academic projects, cost estimation parameters are typically chosen conservatively,
leaning toward lower bounds to minimize the risks of overbudgeting or
underestimating the scope. Below is a justification for each parameter selected in the
RDTE cost estimation for AeroNEX:
1. WTOW = 5,120 lb
This value was derived from the earlier configuration and weight estimation
phases. It reflects a realistic yet moderate estimate for our student-designed
aircraft, keeping it within the range of light aircraft. The value was chosen to
 6 RDTE cost report

ensure our cost estimates align with the operational scope of a compact,
educational prototype and avoid inflated development assumptions.
2. Vₘₐₓ = 180 kn
The maximum speed of 180 knots was established during the mission analysis
phase, based on the short-haul operations around the Persian Gulf. It lies at
the lower end of typical air taxi cruise speeds and was selected to maintain
feasibility within the limited aerodynamic testing infrastructure available in a
university setting (e.g., low-speed wind tunnels and simplified CFD tools).
3. NRDTE = 2
The number of prototypes set to two corresponds to a minimal but sufficient
configuration: one for ground/structural testing and one for flight tests. This
choice reflects realistic constraints on funding and fabrication capacity in a
student project while still meeting basic evaluation needs.
4. FDiff = 1.0
The technology difficulty factor was kept at 1.0, indicating no additional
complexity beyond standard practices. This is reasonable for a student project
that builds on established design methodologies without incorporating radical
innovations or high-risk technologies.
5. FCAD = 0.8
The CAD efficiency factor was reduced to 0.8 to account for limited access
to advanced digital engineering tools. Most university teams work with
educational or basic versions of software, which lack high-end automation
features. This conservative factor reflects slower iteration speed and reduced
productivity.
6. REM = 2 $/hr
The engineering labor rate was set to $2 per hour to represent student-based
development environments. Unlike professional engineering rates (which can
exceed $100/hr), this value reflects minimal labor costs associated with
research-based academic contributions.
By choosing all parameters at the lower bounds provided in the reference document,
we ensure that the RDTE estimation remains realistic and achievable within the
scope, funding, and infrastructure of a university-level design project.
 7 RDTE cost report

The required engineering effort is approximately 16,020 man-hours, yielding:

CAED = 16,020 × $2 = $32,040
1.2 Total RDTE (CRDTE)
In Roskam’s allocation, CAED represents 23.7 % of the total RDTE:
𝐶AED $32,040
CRDTE = ≈ = $135,200
0.237 0.237

RDTE Cost Distribution

Cost Element Percentage Amount ($)
Engineering Design (CAED) 23.7 % 32,040
Tooling & Fixtures 14.0 % 18,928
Manufacturing 35.7 % 48,266
Quality Control 4.8 % 6,490
Development Support 1.8 % 2,434
Flight Test Operations 0.2 % 270
Manufacturing Materials 6.6 % 8,923
Engine Production 11.2 % 15,142
Avionics 1.9 % 2,569
Total RDTE 100 % 135,102
Note: Minor rounding differences account for the $98 discrepancy from $135,200.
 8 Lifecycle cost reduction strategies

3 Lifecycle Cost Reduction Strategies

Aerodynamic and Structural Optimization
Maximize lift-to-drag ratio through iterative CFD simulations and wind tunnel
testing. Refine wing planform, fuselage fairings, and empennage to reduce parasite
and induced drag. Concurrent finite-element analysis identifies stress-critical areas;
topology optimization removes unnecessary material while reinforcing high-load
regions. Deploy advanced materials (aluminum-lithium alloys, carbon-fiber
composites) where cost-benefit analysis justifies weight savings without
compromising strength.
Manufacturing and Assembly Efficiency
Adopt modular airframe subassemblies—nose, mid-fuselage, tail—sourced from
specialized suppliers to slash tooling and inventory costs. Implement a digital thread
(integrated CAD/CAM workflows) for real-time traceability, automated quality
checks, and rapid design iteration. Use just-in-time (JIT) procurement to minimize
on-site inventory. Employ additive manufacturing for low-volume, complex parts
(interior brackets, electronic housings) to reduce lead times and unit costs.
Operational and Maintenance Cost Management
Leverage distributed electric propulsion (DEP) to shift load to simple electric motors,
reducing expensive turbine overhauls and improving dispatch reliability. Deploy
predictive maintenance with embedded health sensors and analytics to schedule
service based on real-time component conditions. Optimize energy use via electric
taxi, continuous descent approaches, and route planning, cutting fuel costs. Integrate
flight-data with ground-service systems to streamline logistics, reducing labor and
spare-parts inventories.

The RDTE budget for AeroNEX is set at $135,200. By executing the three
intersecting strategies—in aerodynamic design, lean manufacturing, and data-driven
operations—AeroNEX will achieve significant cost reductions over its lifecycle.
This disciplined cost management, combined with technological innovation,
positions AeroNEX for sustainable profitability and strong competitive advantage in
the urban air mobility market.
Resources
Roskam, Jan – Airplane Design Part VIII: Airplane Cost Estimation ]1 [