IDENTIFICATION OF THE KEY FACTORS FOR ACCURATE LIFE-CYCLE COST ESTIMATION FOR CONSTRUCTION

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Ayedh Alqahtani ◽  
Andrew Whyte
Keyword(s):  
Life Cycle ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Prediction Models ◽  
Key Factors ◽  
Plant Resources ◽  
Factors Affecting ◽  
Low Visibility ◽  
The Cost ◽  
Cost Factors

A major limitation of Life-Cycle Cost (LCC) estimation/prediction modelling is the current typical reliance only on those factors that can be readily quantified and come easily to hand. While estimation of the cost of the most common labor, material and plant resources receive consideration because of their high visibility factor, there are several non-cost factors (low visibility factors) affecting the estimate that are often overlooked and, it is argued here, require equal consideration in estimation processes that seek optimum accuracy. Unfortunately, such (low-visibility) factors are neglected or ignored by current prediction models. Identification of these non-cost factors (low visibility factors) affects LCC estimate accuracy and can improve estimation process confidence. This paper critically reviews secondary research on identification of these important non-cost factors and subsequently determines their influence on the accuracy level(s) of construction cost estimation.

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.

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.

Application of the life cycle cost estimation method in transport infrastructure managing

2019 ◽  
Vol 126 ◽  
pp. 5-14
Author(s):  
Anna Gobis ◽  
Kazimierz Jamroz ◽  
Łukasz Jeliński
Keyword(s):  
Life Cycle ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Estimation Method ◽  
Research Problem ◽  
Transport Infrastructure ◽  
Life Cycle Thinking ◽  
Infrastructure Management ◽  
Practical Tool ◽  
The Cost

The transport infrastructure management should be in line with sustainable development. Actions and activities that combine the environmental, social, and infrastructure expenditures optimally should be undertaken. The article presents a concept of life-cycle thinking that resolves these problems. The life cycle cost estimation method is a practical tool for managing transport infrastructure. The LCC analysis mustn’t generate more work than the benefits of it. Therefore appropriate assumptions should be made in constructing the method. The method assumes basic assumptions, taking into account the extensive scope of the research problem: transport infrastructure. The result of this article is a proposed mathematical model for estimating life-cycle costs. In the end, the practical use of the proposed methodology for determining the cost of the horizontal marking is provided.

scholarly journals The Cost Analysis of Corrosion Protection Solutions for Steel Components in Terms of the Object Life Cycle Cost

2017 ◽  
Vol 26 (3) ◽  
pp. 5-13 ◽  
Author(s):  
Dariusz Kowalski ◽  
Beata Grzyl ◽  
Adam Kristowski
Keyword(s):  
Life Cycle ◽  
Corrosion Protection ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Optimal Solution ◽  
Local Conditions ◽  
Safety Standards ◽  
The Road ◽  
Major Disadvantage ◽  
The Cost

Abstract Steel materials, due to their numerous advantages - high availability, easiness of processing and possibility of almost any shaping are commonly applied in construction for carrying out basic carrier systems and auxiliary structures. However, the major disadvantage of this material is its high corrosion susceptibility, which depends strictly on the local conditions of the facility and the applied type of corrosion protection system. The paper presents an analysis of life cycle costs of structures installed on bridges used in the road lane conditions. Three anti-corrosion protection systems were considered, analyzing their essential cost components. The possibility of reducing significantly the costs associated with anti-corrosion protection at the stage of steel barriers maintenance over a period of 30 years has been indicated. The possibility of using a new approach based on the life cycle cost estimation in the anti-corrosion protection of steel elements is presented. The relationship between the method of steel barrier protection, the scope of repair, renewal work and costs is shown. The article proposes an optimal solution which, while reducing the cost of maintenance of road infrastructure components in the area of corrosion protection, allows to maintain certain safety standards for steel barriers that are installed on the bridge.

scholarly journals Comparison of Product Life Cycle Cost Estimating Models Based on Neural Networks and Parametric Techniques—A Case Study for Induction Motors

2020 ◽  
Vol 12 (20) ◽  
pp. 8353
Author(s):  
Zbigniew Leszczyński ◽  
Tomasz Jasiński
Keyword(s):  
Neural Networks ◽  
Life Cycle ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Parametric Estimation ◽  
Percentage Error ◽  
Product Life ◽  
Technical Specifications ◽  
The Cost

The cost estimation of a product’s life cycle is a key factor in the product design process. The research is based on an innovative model of artificial neural networks (ANNs) compared to a parametric estimation. Introducing modern elements of information technologies in the area of cost estimation for a production company is a vital element of its sustainability in the era of Industry 4.0. The presented modern product life cycle cost estimation tool in the form of ANN is a reliable source of forecast that is the basis for the product life cycle cost reduction program, which is a crucial element of sustainability. Research shows that ANNs are a viable alternative to parametric cost estimation. The percentage error between estimated and historical cost values is 8.05 times lower for ANN than for the parametric approach. ANN is an adequate cost estimation model for technologically complex products. The second contribution is using technical specifications required by the customer directly to estimate the cost of a product’s life cycle automatically. This can translate both into a reduction of the time needed to provide information to the client and the workload of engineers.

APPLICATION OF COST SIGNIFICANT ITEMS TOWARDS IMPROVING ESTIMATION FOR LIFE CYCLE COSTING OF BUILDING PROJECTS

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Ayedh Alqahtani ◽  
Andrew Whyte
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Construction Projects ◽  
Significant Cost ◽  
Building Projects ◽  
Factors Affecting ◽  
Complicated Process ◽  
Collection Data ◽  
Management Effort ◽  
Cost Factors

Construction projects have numerous variable factors affecting the value of life cycle-cost (LCC) and there is interaction between these factors, leading to complicated process. Therefore the current LCC models suffer from the absence of a standardized and a simple methodology of both the collection data and estimation LCC. Identification of the significant cost factors affecting the output of LCC is important step before embarking upon the collection of progress information. Furthermore, components of construction differ in their cost and time-importance, and thus management effort must be equivalently distributed. The concept of cost significant items (CSIs) is the best method to simplify estimation methodology as well as the collection data of construction projects. In general, The CSIs concept aims to determine the small number of items which represent a constant percentage of the LCC of construction projects. Therefore, this paper aims to present the explanation of each stage of LCC, the current classifications of asset components, the CSIs concept and previous practice of the significant cost items on the construction sector.

scholarly journals Effects of safety barrier life cycle cost factors - identification and analysis

2018 ◽  
Vol 231 ◽  
pp. 01013
Author(s):  
Adam Kristowski ◽  
Beata Grzyl ◽  
Anna Gobis ◽  
Łukasz Jeliński
Keyword(s):  
Life Cycle ◽  
Service Life ◽  
Life Cycle Cost ◽  
Field Data ◽  
Cost Structure ◽  
Safety Barrier ◽  
Safety Barriers ◽  
The Cost ◽  
Cost Factors ◽  
Very High

The costs borne by road infrastructure authorities for managing and maintaining road devices such as safety barriers may be very high. This has prompted the need for identifying and analysing in detail all factors that influence the costs of safety barriers throughout their service life. To meet that need, the authors used international experience and field data collected under the LifeRoSE project to define the cost structure and, as a next step, to analyse factors that are relevant to the costs actually incurred.

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

2010 ◽  
Vol 132 (12) ◽  
Author(s):  
Laxman Waghmode ◽  
Anil Sahasrabudhe ◽  
Prasad Kulkarni
Keyword(s):  
Life Cycle ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Good Alternative ◽  
Life Cycle Costing ◽  
Activity Based Costing ◽  
Product Life ◽  
Traditional Costing ◽  
The Cost

Global competition is forcing manufacturing firms, designers, and customers to adopt life cycle costing methodology. The product life cycle costing (LCC) approach can help track and analyze the cost implications associated with each phase of product life cycle. LCC practices with traditional costing methods may provide results that have a severe deviation from the real product LCC as they focus on the cost of materials, labor, and a low portion of overheads apportioned by the absorption rate to the product. On the contrary, activity based costing (ABC) has emerged as a good alternative to traditional cost estimation techniques since it provides more accurate results. It is based on the principle that products or services consume activities and activities consume resources that generate costs. This paper presents a LCC modeling approach for estimating life cycle cost of pumps using the activity based costing method. The methodology presented here is an extension of application of ABC to entire product life cycle activities. The study was conducted in a large pump manufacturing company from India that has significant global standing within its industry. All the activities and associated cost drivers have been first identified for the entire life cycle of pumps. A methodology for LCC analysis using ABC is then developed and applied to two different pumps manufactured by the same industry and the results are presented.

scholarly journals A Framework for Life Cycle Cost Estimation of a Product Family at the Early Stage of Product Development

2012 ◽  
Vol 605-607 ◽  
pp. 222-227
Author(s):  
Jaya Suteja The ◽  
Prasad K.D.V. Yarlagadda ◽  
M. Azharul Karim ◽  
Cheng Yan
Keyword(s):  
Life Cycle ◽  
Product Development ◽  
Cost Estimation ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Early Stage ◽  
Estimation Method ◽  
Product Family ◽  
Product Family Design ◽  
The Cost

A cost estimation method is required to estimate the life cycle cost of a product family at the early stage of product development in order to evaluate the product family design. There are difficulties with existing cost estimation techniques in estimating the life cycle cost for a product family at the early stage of product development. This paper proposes a framework that combines a knowledge based system and an activity based costing techniques in estimating the life cycle cost of a product family at the early stage of product development. The inputs of the framework are the product family structure and its sub function. The output of the framework is the life cycle cost of a product family that consists of all costs at each product family level and the costs of each product life cycle stage. The proposed framework provides a life cycle cost estimation tool for a product family at the early stage of product development using high level information as its input. The framework makes it possible to estimate the life cycle cost of various product family that use any types of product structure. It provides detailed information related to the activity and resource costs of both parts and products that can assist the designer in analyzing the cost of the product family design. In addition, it can reduce the required amount of information and time to construct the cost estimation system.

scholarly journals Optimal Renovation Strategies through Life-Cycle Analysis in a Pilot Building Located in a Mild Mediterranean Climate

2021 ◽  
Vol 11 (4) ◽  
pp. 1423
Author(s):  
José Manuel Salmerón Lissen ◽  
Cristina Isabel Jareño Escudero ◽  
Francisco José Sánchez de la Flor ◽  
Miriam Navarro Escudero ◽  
Theoni Karlessi ◽  
...  
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Mediterranean Climate ◽  
Building Envelope ◽  
Economic Life ◽  
Hot Water ◽  
Optimal Solutions ◽  
Building Stock ◽  
Existing Building ◽  
The Cost

The 2030 climate and energy framework includes EU-wide targets and policy objectives for the period 2021–2030 of (1) at least 55% cuts in greenhouse gas emissions (from 1990 levels); (2) at least 32% share for renewable energy; and (3) at least 32.5% improvement in energy efficiency. In this context, the methodology of the cost-optimal level from the life-cycle cost approach has been applied to calculate the cost of renovating the existing building stock in Europe. The aim of this research is to analyze a pilot building using the cost-optimal methodology to determine the renovation measures that lead to the lowest life-cycle cost during the estimated economic life of the building. The case under study is an apartment building located in a mild Mediterranean climate (Castellon, SP). A package of 12 optimal solutions has been obtained to show the importance of the choice of the elements and systems for renovating building envelopes and how energy and economic aspects influence this choice. Simulations have shown that these packages of optimal solutions (different configurations for the building envelope, thermal bridges, airtightness and ventilation, and domestic hot water production systems) can provide savings in the primary energy consumption of up to 60%.

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