scholarly journals Life Cycle Costing: Understanding How It Is Practised and Its Relationship to Life Cycle Management—A Case Study

2020 ◽  
Vol 12 (8) ◽  
pp. 3252 ◽  
Author(s):  
Marianna Lena Kambanou
Keyword(s):  
Life Cycle ◽  
Life Cycle Management ◽  
Life Cycle Costing ◽  
Methodological Choices ◽  
Manufacturing Company

Despite the existence of many life cycle costing (LCC) methods, LCC is not widely adopted and LCC methods are usually further tailored by practitioners. Moreover, little is known about how practising LCC improves life cycle management (LCM) especially if LCM is considered emergent and constantly developing. In a manufacturing company, LCC is prescriptively introduced to improve LCM. In the first part, this study describes how various methodological choices and other aspects of practising LCC were the outcome of contestation and conformity with extant practices and not only the best way to fulfil the LCC’s objective. This contestation can even influence if LCC is adopted. In the second part of the research, the implications of practising LCC on LCM are explored. LCC is found to positively propel LCM in many ways e.g., by spreading the life cycle idea, but may lead to a narrower understanding of the term life cycle resulting in the sustainability focus of LCM being overridden. The article also discusses how the findings can be taken into consideration when researchers develop LCC methods and when industry practises LCC.

scholarly journals Sensitivity Analysis of Fuzzy Activity-Based Life Cycle Costing

2018 ◽  
Vol 225 ◽  
pp. 05002
Author(s):  
Freselam Mulubrhan ◽  
Ainul Akmar Mokhtar ◽  
Masdi Muhammad
Keyword(s):  
Sensitivity Analysis ◽  
Life Cycle ◽  
Interest Rate ◽  
Life Cycle Costing ◽  
High Impact ◽  
Final Output ◽  
Left And Right ◽  
The Interest Rate ◽  
Operation Cost

A sensitivity analysis is typically conducted to identify how sensitive the output is to changes in the input. In this paper, the use of sensitivity analysis in the fuzzy activity based life cycle costing (LCC) is shown. LCC is the most frequently used economic model for decision making that considers all costs in the life of a system or equipment. The sensitivity analysis is done by varying the interest rate and time 15% and 45%, respectively, to the left and right, and varying 25% of the maintenance and operation cost. It is found that the operation cost and the interest rate give a high impact on the final output of the LCC. A case study of pumps is used in this study.

scholarly journals Life Cycle Costing in Sustainability Assessment—A Case Study of Remanufactured Alternators

2011 ◽  
Vol 3 (11) ◽  
pp. 2268-2288 ◽  
Author(s):  
Erwin M. Schau ◽  
Marzia Traverso ◽  
Annekatrin Lehmann ◽  
Matthias Finkbeiner
Keyword(s):  
Life Cycle ◽  
Sustainability Assessment ◽  
Life Cycle Costing

Integrated Training Solutions: An Effective Tool to Synchronize People and Maintenance (U.S. Navy LCAC Case Study)

2012 ◽  
Author(s):  
Maurice Hartey ◽  
Thomas Bodman ◽  
Arlene Korn
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Training Programs ◽  
Operating Time ◽  
Life Cycle Management ◽  
Cost Driver ◽  
Maintenance Costs ◽  
Knowledge And Skills ◽  
Long Run

Maintenance, especially in a Marine environment, is continuous and costly. Life Cycle Management of a Marine Gas Turbine system encompasses many costs, of which repair parts, labor and equipment downtime associated with failures and maintenance are a significant portion. In fact, people (labor) make up the largest component of overall maintenance costs. Investing in people the largest cost driver to life cycle cost has a direct return in the long run, in terms of maintenance effectiveness and efficiencies. Applying and reinforcing knowledge and skills in a maintenance environment translates to improved reliability outcomes, longer operating time, fewer parts needs, and ultimately costs savings. However, given today’s constrained fiscal environment, the value of spending money for training rather than buying more parts or applying more maintenance, may not appear obvious. Such thinking is short sighted, and ultimately leads to reduced reliability and increased maintenance in the long run. This paper will explore these areas, and recommend how training programs can be effective predictive, proactive and responsive.

Material life cycle costing of buildings: A case study

2018 ◽  
Author(s):  
Vojtěch Biolek ◽  
Tomáš Hanák
Keyword(s):  
Life Cycle ◽  
Life Cycle Costing ◽  
Material Life

scholarly journals Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case

Mathematics ◽  
2020 ◽  
Vol 8 (10) ◽  
pp. 1787
Author(s):  
Orlando Durán ◽  
Fabián Orellana ◽  
Pablo Perez ◽  
Tamara Hidalgo
Keyword(s):  
Life Cycle ◽  
Life Cycle Costing ◽  
Life Cycle Costs ◽  
Health Index ◽  
Central Chile ◽  
Proposal A ◽  
Sensitivity Studies ◽  
Useful Life ◽  
Physical Assets

A physical asset’s health is the consequence of a series of factors, ranging from the characteristics of the location where it operates to the care it is submitted to. These characteristics can influence the durability or the horizon of the useful life of any equipment, as well as determine its operational performance and its failure rates in the future. Therefore, the assessment of the influence of asset health on Life Cycle Costs is a compelling need. This paper proposes the incorporation of a factor that reflects the projected behavior of an asset’s health index into its corresponding Life Cycle Costing (LCC) model. This allows cost estimates to be made more realistic and LCC models to be operated more accurately. As a way of validating this proposal, a case study is shown. The methodology proposed in this case study was applied in a real case, considering an LNG facility located in central Chile. In addition, sensitivity studies and comparisons with the results obtained by a traditional Life Cycle Costing model are included. The results show the usefulness of incorporating asset health aspects into the Life Cycle Costing of physical assets.

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