Life Cycle Costing Analysis

Overview

Course Description

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.

Benefits

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.

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Who should attend

Those who are:

Looking to improve the efficiency and effectiveness of asset management plans, supply logistics, technology, equipment and spare parts purchasing decisions, project evaluation.
Interested in the future impact of their equipment engineering, maintenance, procurement, asset management and reliability activities and the cost of failures.
Job roles: 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.

None

Summary

2 days / 15 hrs

Classroom

Request information

Program Outline

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