Make decisions based on data—not guesswork
Compare alternative scenarios for projects with different initial acquisition costs, varying reliability and maintenance strategies, and different disposal costs.
Life Cycle Costing is a tool for assessing different project options that have been proven to meet the operational needs and determine the lowest overall cost to your business, lowest capital-intensive solution, or lowest operational cost through its lifetime.
- Assess competing alternatives and make the most cost-effective decisions
- Model when repair costs for a set lifetime will exceed the capital cost of replacement
- Develop effective asset management plans
- Accurately determine maintenance budgets
- Understand time for payback and return on investment
The Life Cycle Cost (LCC) module of Availability Workbench™ allows users to define life cycle costs. These costs may be integrated with predicted costs in the cost breakdown structure to provide a time-dependent analysis of a system's whole life cycle cost process.
Whatever the system, the life cycle cost analysis technique will be the same, the major items of cost will be defined through its life. The items may be further subdivided until the cost of each element can be defined as a mathematical equation. At a simple level, this may be the number of man-hours multiplied by a cost rate.
The elements of cost will then be added together to give the total cost for each item and a grand total for the system through its full life.
Customizable cost breakdown structures
Develop a customized cost breakdown structure that can then be used as a template for all LCC studies. This ensures consistency of analysis and completeness through driving input of all elements to be considered.
Use detailed maintenance and reliability costs
The Availability Workbench™ LCC module can use the detailed maintenance costs forecasted by an associated RCMCost or AvSim+ model. This allows for accurate simulation-based total maintenance costs of labor, equipment, and materials across any lifetime to be included within the LCC model.
A single LCC project can be set up to compare a number of alternate scenarios. Resulting cost profiles can be viewed on a single chart to assess project alternatives or determine payback periods.
LCC has powerful library functionality that allows users to develop standard cost calculation structures or templates for more efficient model and scenario modeling and costing. Analysis can be run over any model life and increments.
With Life Cycle Cost you can:
Availability Workbench™, Reliability Workbench™, FaultTree+™, and Hazop+™ are trademarks of Isograph Limited, the author and owner of products bearing these marks. ARMS Reliability is an authorised distributor of those products, and a trainer in respect of their use.