An Application of a Generalized Life Cycle Cost Model to BOXN Wagons of Indian Railways

2010 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Anil Dattatraya Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Span ◽  
Life Cycle Cost ◽  
Life Cycle Costing ◽  
Design Stage ◽  
Railway Vehicle ◽  
Repairable System ◽  
Initial Product ◽  
Finished Steel ◽  
Railway Industry

The objective of this paper is to apply a methodology developed for effective implementation of life cycle costing (LCC) in design and procurement of repairable products/systems to railway wagons. From its origin in defense equipment in US in 1960s, the application of life cycle cost concept has now been extended to other areas of private and public sectors too. This is because the customers are now considering not only the initial product costs but also the cost implications associated with the entire life span of a product. This emerging trend in global markets is gradually forcing the product manufacturers to estimate and optimize the product LCC with reference to performance, safety, reliability (R), and maintainability (M). The life cycle cost of a repairable system is closely coupled to its reliability and maintainability and therefore a careful consideration to the R & M parameters in the product design stage is quite essential from the LCC viewpoint. Taking into consideration these aspects a generalized modeling methodology has been proposed to estimate the life cycle cost of repairable products based on R & M principles. Life cycle costing in railway industry has traditionally been focused on the prediction of investment of railway vehicle. But, today’s mass transit market has rapidly been changed and the suppliers are now forced to treat the LCC of entire railway system. Indian railways are the principle mode of transport for raw materials for steel plants, finished steel from steel plants, coal, oil, iron, cement, petroleum products, fertilizers and food grains in India. To serve this purpose BOXN wagons are used by Indian railways. The BOXN wagons typically have a life span of 35 years and being a repairable system experience multiple failures over their life span. In this paper, a generalized model for LCC of repairable products has been proposed and is applied to BOXN wagon of Indian railways and the results obtained are presented. The methodology presented herein is expected to provide some useful guidelines to the railway industry to predict and analyze the life cycle cost of railway vehicles.

scholarly journals Embedded Life Cycle Costing Elements in Green Building Rating Tool

2019 ◽  
Vol 5 (4) ◽  
pp. 750-758 ◽  
Author(s):  
Jam Shahzaib Khan ◽  
Rozana Zakaria ◽  
Eeydzah Aminudin ◽  
Nur Izie Adiana Abidin ◽  
Mohd Affifuddin Mahyuddin ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Life Cycle Cost ◽  
Green Building ◽  
Management Plan ◽  
Life Cycle Costing ◽  
Design Stage ◽  
The Sustainable Development ◽  
Resource Degradation ◽  
Development Goals

Green Building rating tools are the essential need of this era, to cope up with the sustainable development goals, climate change, and natural resource degradation through buildings. Realization of green building incentives decently increased within past few decades with abrupt declination in real estate markets and economic depletion has decelerated the interest of investors towards the green building projects. This research calculates influence of costing elements in MyCREST (IS-design) using questionnaire survey distributed amongst qualified professionals (QP’S) of green buildings and expert practitioners. Firstly, factor score and then weightage factor was performed to produce the final result with weightage output for evaluating weighatge and ranking of the relevant criteria of MyCREST and life cycle cost elements respectively. It is found that the criteria of storm water management has weighatge of 0.236 as highest and criteria environmental management plan (EMP) as 0.061 as lowest. Research also identified another perspective by finding association of cost element at design stage of MyCREST and found that management cost is highly associated at design stage with the value of 87.7%. The outcome of this research will add value to green building development and map road towards sustainable development using green building tools to uplift quality of life. Furthermore, this paves a way to integrate various stages of MyCREST with life cycle costing tool to potentially contribute in evaluating cost association through green building rating tool.

An Application of a Generalized Life Cycle Cost Model to a Typical Pump From Industry

2009 ◽  
Author(s):  
L. Y. Waghmode ◽  
A. D. Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Span ◽  
Life Cycle Cost ◽  
Cost Model ◽  
Life Time ◽  
Maintenance Cost ◽  
Repairable System ◽  
Repairable Systems ◽  
Generalized Model ◽  
Mean Time

The objective of this paper is to develop a methodology for effective implementation of life cycle costing (LCC) in design and procurement of repairable and non-repairable products. For this purpose, a generalized model for LCC of repairable and non-repairable products has been proposed. The equations of cost components of the proposed generalized model have been formulated for repairable systems based on the reliability and maintainability aspects to enable the life-time cost conscious design of such systems. The repairable systems typically have a life span of 10 to 20 years and experience multiple failures over their life span. The life cycle cost of a repairable system is significantly influenced by its reliability and maintainability. The life time energy and/or maintenance cost often dominate LCC for most of the repairable systems. Under the condition of constant failure rate the repairable system reliability is characterized by mean time between failures (MTBF) and maintainability by mean time to repair (MTTR). A higher value of MTBF and lower value of MTTR results into lower life cycle cost and therefore a due consideration to these factors is essential while designing repairable systems. The generalized LCC model presented in this paper will assist the designers to compare the life cycle cost of their different design alternatives at product design phase wherein most of the life cycle costs are committed. The developed generalized LCC model is applied to a typical repairable system, a pump from industry and the results obtained are presented.

A Study of Life Cycle Costing in the Perspectives of Research and Commercial Applications in the 21st Century

2007 ◽  
Author(s):  
Wai M. Cheung ◽  
Linda B. Newnes ◽  
Antony R. Mileham ◽  
Robert Marsh ◽  
John D. Lanham
Keyword(s):  
Life Cycle ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Academic Research ◽  
Life Cycle Costing ◽  
Electronic Products ◽  
Commercial Applications ◽  
The Uk ◽  
The Cost ◽  
Traditional Approaches

This paper presents a review of research in the area of life cycle costing and offers a critique of current commercial cost estimation systems. The focus of the review is on relevant academic research on life cycle cost from 2000 onwards. In addition to this a comparison of the current cost estimation systems is presented. Using the review findings and industrial investigations as a base, a set of mathematical representations for design and manufacturing costs and the introduction of the critical factors is proposed. These are considered in terms of the operational, maintenance and disposal costs to create a method for ascertaining the life cycle cost estimate for complex products. This is presented using as an exemplar, research currently being undertaken in the area of low volume and long life electronic products in the UK defence sector. The benefit of the method proposed is that it aims to avoid the inflexibility of traditional approaches which usually require historical and legacy data to support the cost estimation processes.

Whole Life/Life Cycle Costing During the Design Stage of a Construction Project

2020 ◽  
Vol 9 (2) ◽  
pp. 66-87
Author(s):  
Daniel Clarke-Hagan ◽  
Michael Curran ◽  
John Spillane ◽  
Mary-Catherine Greene
Keyword(s):  
Life Cycle ◽  
Qualitative Methodology ◽  
Construction Project ◽  
Life Cycle Costing ◽  
Design Stage ◽  
Life Cycle Costs ◽  
Mind Mapping ◽  
Advantages And Disadvantages ◽  
Mapping Software ◽  
Whole Life Costing

The calculations of life cycle costs (LCC) and whole life costs (WLC) are important tools in the life cycle of a project. The aim of this research is to examine life cycle costing, whole life costing, and the possible advantages and disadvantages to their introduction and use. A qualitative methodology encompassing an in-depth literature review, interviews, and qualitative analysis using mind mapping software, this research is important as it can add to the industry's understanding of the design process. It highlights reasons for the success or failure of a construction project, in terms of sustainability at the design stage. Results indicate that the researched topics had many advantages but also had inherent disadvantages. It is found that the potential advantages outweighed disadvantages, but uptake within industry is still slow and that better promotion and their benefits to sustainability, the environment, society, and the industry are required.

Life Cycle Costing of Simulated vs Actual Equipment for Intermediate Maintenance Training

1978 ◽  
Vol 22 (1) ◽  
pp. 267-271
Author(s):  
F. Thomas Eggemeier ◽  
Gary A. Klein
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Initial Phase ◽  
Life Cycle Costing ◽  
Intermediate Level ◽  
Training Device ◽  
Major Purpose ◽  
Maintenance Costs ◽  
Actual Equipment ◽  
The Cost

Life cycle cost estimates of training equipment for F-16 Avionics Intermediate Station personnel were developed. The major purpose was to compare the cost of intermediate level maintenance training when conducted on simulated vs actual avionics test equipment. This was the initial phase of a planned two-part effort. The analysis was therefore limited to estimates of training device acquisition and maintenance costs. Total estimated fifteen year costs for simulated equipment trainers were approximately 50% less than comparable estimates for actual equipment trainers.

Life Cycle Cost Modeling of Pumps Using an Activity Based Costing Methodology

2010 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Anil Dattatraya Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Business Environment ◽  
Life Cycle Costing ◽  
Activity Based Costing ◽  
Global Business ◽  
Product Life ◽  
Traditional Costing ◽  
The Cost

In order to survive in today’s competitive global business environment, implementation of life cycle costing methodology with a greater emphasis on cost control could be one of the convincing approaches for the manufacturing firms. The product life cycle costing approach can help track and analyse the cost implications associated with each phase of product life cycle. Life cycle costing (LCC) practices with traditional costing methods may provide results that have a severe deviation from the real product LCC as it focuses on the cost of materials, labor and a low portion of overheads apportioned by the absorption rate to the product. Activity based costing (ABC) has emerged as one of the several innovative and more accurate costing methods in recent years. It is based on the principle that products or services consume activities and activities consume resources that generate costs. Thus, the ABC system focuses on calculating the costs incurred on performing the activities to manufacture a product. This paper presents a LCC modeling approach for estimating life cycle cost of pumps using activity based costing method. The study was conducted in a large pump manufacturing company from India that has significant global standing within its industry. Firstly, all the activities and cost drivers associated with the life cycle of a pump have been identified. A methodology for LCC analysis using ABC is then developed and it is applied to two different pumps manufactured by the same industry and the results obtained are presented.

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