A LORA is an analytical methodology used to determine at what level of repair an item will be replaced, repaired, or discarded based on cost considerations and operational readiness requirements. For a complex engineering system containing thousands of assemblies, sub-assemblies, components, organized into several levels of indenture and with a number of possible repair decisions, LORA seeks to determine an optimal provision of repair and maintenance facilities to minimize overall life-cycle costs. Logistics personnel examine not only the cost of the part to be replaced or repaired but all of the elements required to make sure the job is done correctly. This includes the skill level of personnel, tools required to perform the task, test equipment required to test the repaired product, and the facilities required to house the entire operation.

LORA produces the final answer as to how a system will be supported. LORA is performed in two steps:

1. Using noneconomic decision criteria to make the initial support decisions
2. Using an economic model to determine the most cost effective alternative to provide support for the system

Noneconomic LORA decision criteria are a list of rules or guidelines that are used to determine if there is an overriding reason why maintenance should be performed. Some organizations have policies that any item costing less than a predetermined price level will be discarded and replaced rather than be repaired.

Other decisions are addressed using cost models that calculate the possible costs of all support options and then identify the least cost solution. Then the total cost of each option can be compared to determine the lowest option in terms of long-term support over the life of the system.

MIL-HDBK-1390, Level of Repair Analysis, addresses the overall LORA process and its associated activities, the selection and tailoring of those activities to meet DoD program supportability objectives, and sample contract language for acquiring LORA deliverables. The handbook offers implementing guidance on SAE AS 1390, Level of Repair Analysis, activities as an integral part of the overall systems engineering process. This handbook is applicable to all systems acquisition programs, major modification programs, and applicable to research and development projects requiring LORA through all phases of the product life cycle.

The LORA process is an analytical effort undertaken to influence decisions on a system’s design, maintenance planning, cost, and Integrated Product Support (IPS) Element resources. The LORA process forms an integral part of Product Support Analysis (PSA) process by using results of and feeding to various PSA activities and the Logistic Product Data (LPD).  The processes are defined in SAE TA-STD-0017 Product Support Analysis and the LPD is defined in SAE GEIA-STD-0007C.

NOTE: MIL-HDBK-1390 is for guidance only and cannot be citied as a requirement.