Life Cycle Costing Analysis

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Learn about Life Cycle Costing and its application in Asset Management. Understand the different elements that make up a full Life Cycle Costing Analysis. Discover how to build a Cost Breakdown Structure and what parameters are used to drive the LCC calculation.

Provide participants with the skills to be able to make optimal hiring and purchasing decisions, and know their benefit to the business throughout the life cycle.
Know how to predict future lifecycle costs of engineering, maintenance, spare parts, resources, budgets, and risk decisions.

Duration:

15 hours

Schedule:

days

Delivery:

Audience:

Asset Managers
Reliability Engineers
Project Engineers
Maintenance Analysts
Maintenance Supervisors
Design Engineers
Continuous Improvement personnel

Objectives:

Understand the foundation of Life Cycle Costing and the main terminology used in its analysis.
Discover the data requirements needed to ensure an accurate LCC analysis.
Participate in a real-world exercises to develop LCC models within dedicated software.

Required Prerequisites:

None

Recommended Prerequisites:

None

Additional Requirements:

None

Program:

Day 1
- Asset Management and Life Cycle
- Introduction to Life Cycle Cost
- Interest; Simple Interest and Compound Interest
- Nominal and Effective Interest Rates
- Life Cycle Cost Analysis Formulas; Future Value, Present Value, Current Value and NPV.
- Cost Breakdown Structure
- Cost Disciplines
- Data Requirements; Database, Existing Data Sources
Day 2
- Steps in Life Cycle Cost Analysis
- Using AWB software, Availability Workbench, LCC module
- Sensitivity Analysis
- Life Cycle Cost Models
- LCCA Examples Workshop

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