Measuring life cycle costs for complex B2B products

2019 ◽  
Vol 25 (2) ◽  
pp. 355-375
Author(s):  
Matthias Schlipf ◽  
Carlos Keller ◽  
Fabian Lutzenberger ◽  
Stefan Pfosser ◽  
Andreas Rathgeber
Keyword(s):  
Life Cycle ◽  
Case Studies ◽  
Life Cycle Cost ◽  
Spare Part ◽  
Spare Parts ◽  
Content Type ◽  
Capital Costs ◽  
Different Types ◽  
Interdisciplinary Methodology ◽  
Engine Maintenance

PurposeThe purpose of this paper is to develop a new interdisciplinary methodology to estimate the life cycle cost (LCC) of complex business-to-business products in order to price different types of maintenance contracts and show the applicability of the method in a case study. LCC comprise of initial capital costs as well of operation costs including probabilistic costs (such as the costs of repairs and spare parts), which are directly linked to the maintenance characteristics of the product.Design/methodology/approachThe paper proposes an integrated and practical methodology that applies different approaches from different disciplines. Therefore, exponential distributions for failure rates in subsystems, World Bank logistics factors for logistics costs of spare part handling, as well implied credit default probabilities for the counterpart risk in full service leasing contracts are applied. In order to validate the applicability of the proposed methodology to practical problems, the tool is applied in three case studies.FindingsThe results of the case studies show that this methodology can be applied to analyze LCC structures of engines operating in various regions with regard to different types of engine maintenance contracts. The results also highlight the interplay of technical as well as financial risks.Originality/valueBecause the literature in maintenance engineering so far either proposes general frameworks to calculate LCC or concentrates on specific aspects of LCC, the paper contributes to the literature in presenting a new interdisciplinary methodology to estimate the LCC.

scholarly journals Policy Analysis on Spare Part Inventory of Critical Asset with Life Cycle Cost Approach

2021 ◽  
Vol 1764 (1) ◽  
pp. 012185
Author(s):  
Winda Nur Cahyo ◽  
Riza S.I. Raben ◽  
Haryo Prawahandaru ◽  
Bayu A. Swasono ◽  
Riyan Tri Sutartono ◽  
...  
Keyword(s):  
Life Cycle ◽  
Policy Analysis ◽  
Life Cycle Cost ◽  
Spare Part ◽  
Cost Approach

scholarly journals Performance tradeoffs for spare parts supply chains with additive manufacturing capability servicing intermittent demand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyle C. McDermott ◽  
Ryan D. Winz ◽  
Thom J. Hodgson ◽  
Michael G. Kay ◽  
Russell E. King ◽  
...  
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
Production Capacity ◽  
Spare Part ◽  
Spare Parts ◽  
Mixed Integer ◽  
Network Configuration ◽  
Intermittent Demand ◽  
Content Type ◽  
Demand Patterns

PurposeThe study aims to investigate the impact of additive manufacturing (AM) on the performance of a spare parts supply chain with a particular focus on underlying spare part demand patterns.Design/methodology/approachThis work evaluates various AM-enabled supply chain configurations through Monte Carlo simulation. Historical demand simulation and intermittent demand forecasting are used in conjunction with a mixed integer linear program to determine optimal network nodal inventory policies. By varying demand characteristics and AM capacity this work assesses how to best employ AM capability within the network.FindingsThis research assesses the preferred AM-enabled supply chain configuration for varying levels of intermittent demand patterns and AM production capacity. The research shows that variation in demand patterns alone directly affects the preferred network configuration. The relationship between the demand volume and relative AM production capacity affects the regions of superior network configuration performance.Research limitations/implicationsThis research makes several simplifying assumptions regarding AM technical capabilities. AM production time is assumed to be deterministic and does not consider build failure probability, build chamber capacity, part size, part complexity and post-processing requirements.Originality/valueThis research is the first study to link realistic spare part demand characterization to AM supply chain design using quantitative modeling.

scholarly journals Putting resilient sustainability into strategy decisions – case studies

2018 ◽  
Vol 56 (7) ◽  
pp. 1598-1612 ◽  
Author(s):  
Julie Winnard ◽  
Jacquetta Lee ◽  
David Skipp
Keyword(s):  
Case Studies ◽  
Real World ◽  
Design Methodology ◽  
Strategic Decision ◽  
New Approach ◽  
Content Type ◽  
Industrial Companies ◽  
Different Types ◽  
Strategic Decision Support ◽  
Practical Implications

Purpose The purpose of this paper is to report the results of testing a new approach to strategic sustainability and resilience – Sustainable Resilient Strategic Decision-Support (SuReSDS™). Design/methodology/approach The approach was developed and tested using action-research case studies at industrial companies. It successfully allowed the participants to capture different types of value affected by their choices, optimise each strategy’s resilience against different future scenarios and compare the results to find a “best” option. Findings SuReSDS™ enabled a novel integration of environmental and social sustainability into strategy by considering significant risks or opportunities for an enhanced group of stakeholders. It assisted users to identify and manage risks from different kinds of sustainability-related uncertainty by applying resilience techniques. Users incorporated insights into real-world strategies. Research limitations/implications Since the case studies and test organisations are limited in number, generalisation from the results is difficult and requires further research. Practical implications The approach enables companies to utilise in-house and external experts more effectively to develop sustainable and resilient strategies. Originality/value The research described develops theories linking sustainability and resilience for organisations, particularly for strategy, to provide a new consistent, rigorous and flexible approach for applying these theories. The approach has been tested successfully and benefited real-world strategy decisions.

Sustainable construction

2020 ◽  
Vol 20 (2) ◽  
pp. 191-207 ◽  
Author(s):  
Muhammad Waseem Khan ◽  
Yousaf Ali
Keyword(s):  
Life Cycle ◽  
Rice Husk ◽  
Life Cycle Cost ◽  
Sustainable Construction ◽  
Partial Replacement ◽  
Content Type ◽  
Government Organizations ◽  
Construction Companies ◽  
Concrete Type ◽  
The Impact

Purpose The change in climate and depletion of natural resources because of the harmful emissions from different materials becomes a main issue for the globe. Some of the developed and developing countries have focused on this issue and performed research to provide a solution. The purpose of this study is to identify the best types of concrete based on its impact on the environment and economy. Design/methodology/approach The life cycle assessment and life cycle cost analysis of six concrete mixtures that include construction and demolition wastes (CDW), marble sludge, rice husk and bagasse ash as a partial replacement of cement, are performed. These types of concrete are compared with each other and with ordinary concrete to select the best possible concrete type for a developing country, like Pakistan. Findings The results show that, although for an agricultural country like Pakistan, the agriculture wastes such as rice husk and bagasse ash are preferable to be used, if the emissions of CO2 and CO from rice husk and NOx and SO2 from bagasse ash are properly controlled. However, based on the results, it is recommended to use the CDW in concrete because of the small amount of air emissions and affordable prices. Originality/value Through this study, a path has been provided to construction companies and relative government organizations of Pakistan, which leads to sustainable practices in the construction industry. Moreover, the base is provided for future researchers who want to work in this area, as for Pakistan, there is no database available that helps to identify the impact of different concrete on the environment.

Time-based responsive logistics for a maintenance service network

2019 ◽  
Vol 25 (4) ◽  
pp. 589-611 ◽  
Author(s):  
Ioannis Manikas ◽  
Balan Sundarakani ◽  
Vera Iakimenko
Keyword(s):  
Case Study Research ◽  
Spare Part ◽  
Service Level ◽  
Spare Parts ◽  
Retail Banking ◽  
Distribution Centers ◽  
Service Network ◽  
Content Type ◽  
Maintenance Service

PurposeThe purpose of this paper is to identify the main reasons for spare parts logistics failures and address logistics distribution design in order to achieve the desired level of after-sales maintenance service.Design/methodology/approachThis research is based on an empirical case study on a large corporation providing worldwide with retail banking hardware, software and services. The case study focuses on the automated teller machine (ATM) part of activities, with a focus on the spare parts distribution and after-sales service network in the Eastern Europe.FindingsThe proposed network solution of multiple distribution centers with short-cut distance saving approach will enable the case study company to redesign their spare part logistics architecture in order to achieve short response time. Research findings reveal possible spare parts delivery delays and thus the service-level agreement failures with clients in the case study company.Research limitations/implicationsThis research covers a particular supply chain environment and identified research gaps. It discusses a time-based responsive logistics problem and develops a conceptual framework that would help researchers to better understand logistics challenges of installed equipment maintenance and after-sales service.Originality/valueThis case study research shows the “big picture” of spare parts logistics challenges as vital part of installed equipment after-sales and maintenance service network, as well as emphasizes how the unique context of a market like Russian Federation can set-up a distribution network efficiently. Strategies applied to handle such service-level failures, reverse logistics aspects of repairable and non-repairable spare parts to such large ATM after-sales service network based on this longitudinal case offer value for similar scale companies.

Enablers of relational integrated value networks (RIVANS) for total facilities management (TFM)

2018 ◽  
Vol 23 (2) ◽  
pp. 170-184 ◽  
Author(s):  
Nayanthara De Silva ◽  
Nilmini Weerasinghe ◽  
H.W.N. Madhusanka ◽  
Mohan Kumaraswamy
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Driving Forces ◽  
Holistic Approach ◽  
Facilities Management ◽  
Life Cycle Approach ◽  
Integrated Networks ◽  
Value Networks ◽  
Content Type

Purpose The purpose of this paper is to identify enablers for setting up relationally integrated value networks (RIVANS) for total facilities management (TFM) as a holistic approach to bridge the Project Management (PM) phase to the facilities management (FM) phase, aiming for better service delivery while optimizing the life-cycle cost. These enablers are proposed as required driving forces for the industry to bridge current gaps through RIVANS for TFM so as to improve the value of the facility and deliver better value to its stakeholders over its life span. Design/methodology/approach A literature review elicited 11 typical better values that could be achieved by suitably linking the PM and FM supply chains in general. While these were tested in parallel research exercises in Hong Kong, the UK and Singapore, this paper reports on the specific findings from Sri Lanka, where a Web-based questionnaire survey was conducted to identify potential better values for proposed relational networks (including the clients, consultants, contractors and suppliers in the supply chain). Better values were then clustered under principal domains/components using factor analysis to establish synergetic enablers. Findings In total, 11 significant better values for TFM were identified and four enablers were extracted as building long-term integrated networks, establishing a common resource pool linking PM and FM, enhancing sustainability of TFM and developing a similar protocol between PM and FM. Originality/value The study carried out in this paper contributes to knowledge by identifying drivers to bridge the gap between PM and FM to best achieve clients’ long-term aspirations through a holistic life-cycle approach. Furthermore, all stakeholders in TFM can revisit their practices to establish and strengthen the identified enablers.

Recurrent embodied energy and its relationship with service life and life cycle energy

Facilities ◽  
2014 ◽  
Vol 32 (3/4) ◽  
pp. 160-181 ◽  
Author(s):  
Manish K. Dixit ◽  
Charles H. Culp ◽  
Sarel Lavy ◽  
Jose Fernandez-Solis
Keyword(s):  
Life Cycle ◽  
Service Life ◽  
Case Studies ◽  
Energy Use ◽  
Embodied Energy ◽  
Future Research ◽  
Strong Positive Correlation ◽  
Content Type ◽  
Positive Correlation ◽  
Literature Based Discovery

Purpose – The recurrent embodied energy (REE) is the energy consumed in the maintenance, replacement and retrofit processes of a facility. The purpose of this paper was to analyze the relationship of REE with the service life and life cycle embodied energy. The amount of variation in the reported REE values is also determined and discussed. Design/methodology/approach – A qualitative approach that is known as the literature based discovery (LBD) was adopted. Existing literature was surveyed to gather case studies and to analyze the reported values of REE. Findings – The reported values of REE showed considerable variation across referred studies. It was also found that the reported REE values demonstrated a moderate positive correlation with the service life but a very strong positive correlation with the life cycle embodied energy of both the residential and commercial facilities. Research limitations/implications – This review paper pointed out the importance of the maintenance and replacement processes in reducing the life cycle energy use in a facility. Future research could focus on performing case studies to evaluate this relationship. Practical implications – The findings highlight the significance of REE in reducing the life cycle energy impacts of a facility. As facility managers routinely deal with maintenance and replacement processes, they hold an important responsibility of reducing the life cycle energy. Originality/value – The findings of the paper would motivate the facilities management professionals to prefer long service life materials and components during the postconstruction phases of a built facility.

Reliability analysis and life cycle cost optimization: a case study from Indian industry

2016 ◽  
Vol 33 (3) ◽  
pp. 414-429 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Rajkumar Bhimgonda Patil
Keyword(s):  
Life Cycle ◽  
Reliability Analysis ◽  
Life Cycle Cost ◽  
Cost Optimization ◽  
Control Panel ◽  
Life Cycle Cost Analysis ◽  
Content Type ◽  
Cutting Machine ◽  
Band Saw

Purpose – Reliability analysis is required to identify the components or subsystems with low reliability for a given designed performance. Life cycle cost analysis helps understand the cost implications over the entire life span of a product. The purpose of this paper is to present a case study describing reliability analysis and life cycle cost optimization of a band saw cutting machine manufactured and used in India. Design/methodology/approach – The data required for reliability analysis is collected from the manufacturer and users of band saw cutting machine. The parameters of failure distribution have been estimated by using ReliaSoft’s Weibull++6 software. The life cycle cost is divided into various cost elements such as acquisition cost, operation cost, failure cost, support cost and net salvage value. Findings – The results of the analysis show that the components such as band wheel bearing, guide roller bearing, limit switch, carbide pad, hydraulic cylinder oil seal, control panel dial, control panel and solenoid valve are critical from reliability and life cycle cost analysis perspective. Originality/value – With certain design changes it is found that the reliability of the system is increased by 15.85 percent while the life cycle cost is reduced by 22.09 percent. The study also shows that the reliability analysis is useful for deciding maintenance intervals.

scholarly journals Evaluation of non-cost factors affecting the life cycle cost: an exploratory study

2016 ◽  
Vol 14 (4) ◽  
pp. 818-834 ◽  
Author(s):  
Ayedh Alqahtani ◽  
Andrew Whyte
Keyword(s):  
Life Cycle ◽  
Survey Data ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Accurate Estimation ◽  
Capital Operation ◽  
Building Projects ◽  
Content Type ◽  
Factors Affecting ◽  
Cost Factors

Purpose This paper aims to identify the main non-cost factors affecting accurate estimation of life cycle cost (LCC) in building projects. Design/methodology/approach Ten factors affecting LCC in building project cost estimates are identified through literature and interviews. A questionnaire survey is conducted to rank these factors in order of priority and provide the views of cost practitioners about the significance of these factors in the accurate estimation of LCC. The data from 138 construction building projects completed in UK were collected and analysed via multiple regression to discover the relationship between capital and LCCs and between non-cost factors and cost estimation at each stage of the life cycle (capital, operation, maintenance and LCC). Findings The results of analysis of existing LCC data of completing project and survey data from cost professionals are mostly consistent with many literature views and provide a reasonable description of the non-cost factors affecting the accuracy of estimates. Originality/value The value of this study is in the method used, which involves analysis of existing life data and survey data from cost professionals. The results provide a plausible description of the non-cost factors affecting the accuracy of estimates.

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