scholarly journals Analysis of the Impact of Input Data on the Planned Costs of Building Maintenance

2021 ◽  
Vol 13 (21) ◽  
pp. 12220
Author(s):  
Edyta Plebankiewicz ◽  
Jakub Gracki

The aim of the article is to analyze the method of determining the maintenance costs of buildings based on the method proposed in Polish legal regulations. The analysis of the sensitivity of the method shows that the assumed number of product use cycles during the calculation period has the greatest impact, while the adopted warranty period has the lowest impact. A multi-functional building combining housing, office, service and commercial was analyzed in order to obtain a broader picture of the model’s operation. The results of the analyses allow us to conclude that despite the higher price of materials, the most durable solutions, which are the most expensive to purchase, turn out to be the most advantageous in the entire life cycle of the building. The method proposed in Polish law regulations has certain limitations. In order to level them, it was proposed to extend the method by using NPV (Net Present Value) for calculations and extending the life cycle of the building to 80 years.

2019 ◽  
Vol 65 (2) ◽  
pp. 163-179 ◽  
Author(s):  
E. Plebankiewicz ◽  
K. Zima ◽  
D. Wieczorek

Abstract The model for estimating the whole life costs of the building life cycle that allows the quantification of the risk addition lets the investor to compare buildings at the initial stage of planning a construction project in terms of the following economic criteria: life cycle costs (LCC), whole life costs (WLC), life cycle equivalent annual costs (LCEAC) and cost addition for risk (ΔRLCC). The subsequent stages of the model development have been described in numerous publications of the authors, while the aim of this paper is to check the accuracy of the model in the case of changing the parameters that may affect the results of calculations. The scope of the study includes: comparison of the results generated by the model with the solutions obtained in the life cycle net present value method (LCNPV) for time and financial input data, not burdened with the risk effect; the analysis of the variability of results due to changes in input data; analysis of the variability of results as a consequence of changing the sets of membership functions for input data and methods for defuzzification the result.


Author(s):  
Dale Grace ◽  
Christopher A. Perullo ◽  
Jared Kee

Selecting the appropriate level of filtration for a gas turbine helps to minimize overall unit costs and maximize net revenue. When selecting a filter type and configuration, one must consider the initial costs, operational costs, and ongoing maintenance costs for both the filter and corresponding impacts on unit performance. Calculations are complex, and a fully functional framework is needed to properly account for all aspects of the life cycle and provide an opportunity to optimize filter selection and water wash scenarios for specific plant operating conditions. Decisions can generally be based on several different criteria. For instance, one may wish to minimize maintenance costs, maximize revenue, minimize fuel consumption, etc. For criteria that can be expressed in monetary terms, Life Cycle Cost Analysis (LCCA) is a means to simultaneously consider all criteria and reduce them to a single parameter for optimization using present value arithmetic. To be practically applied, the analysis must include all the significant inputs that would have an impact on the relative comparison between alternatives, while excluding minor inputs that would unduly add to complexity. This paper provides an integrated, quantitative, and transparent approach to life cycle cost analysis for gas turbine inlet filtration. Most prior art tends to focus either on how to perform the life cycle cost analysis (with simplified assumptions on the impact of filtration on performance), or on a specific technical aspect of filtration such as filter efficiency and performance, the impact of dust on compressor blading and fouling, or the impact of fouling on overall gas turbine performance. Many of these studies provide useful insight into specific aspects of gas turbine degradation due to fouling, but make simplifying assumptions that can lead to inaccuracies in application. By heavily leveraging prior work, this paper provides the reader with an overview of all aspects of the functionality required to perform such a life cycle analysis for gas turbine filtration. This work also serves as a technical summary of the underlying physics models that lead to the development of EPRI’s Air Filter Life-Cycle Optimizer (AFLCO) software. The software tool provides a method to account for the influence of gas turbine type, operating conditions, load profile, filtration choices, and wash type and frequency on overall life-cycle costs. The AFLCO tool is focused on guiding the user to make optimum filter selections and water wash scheduling, accounting for all the significant parameters that affect the economic outcome. Revenue and cost quantities are considered simultaneously to determine the net present value of gross revenue minus filtration and water wash costs over a multiple year analysis period. The user defines the scenarios and the software displays the net present value (NPV) and present value difference between the scenarios. The preferred configuration from an LCCA perspective is that which yields the highest present value for net revenue. The user can iterate on multiple scenarios to seek further increases in NPV. The paper provides relevant example case studies to illustrate how LCCA evaluations of inlet air filters and water wash frequency can be applied to optimize gas turbine economic performance. The intent of the paper is to provide the user with a summary of prior work that can be integrated to provide a more holistic, complete life cycle cost analysis and describes the framework used within the AFLCO software. The underlying technical analysis in this paper can be applied to any life cycle cost analysis.


JURISDICTIE ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 137
Author(s):  
Luthvia Moonda

The development of financial system recently has been contributing to the economic growth of the nation. Its vital role helps many financial institutions to advance their financial services, particularly in investment systems such as Sukuk. As seen in recent years, the involvement of Sukuk in many industries ranging from sovereigns to corporates for both Muslim and non-Muslim world companies. Although its popularity increases, it seems to be widely accepted that the insufficient structures of Sukuk become a big challenge to serve the public needs to be in compliance with Shari’ah principles. In an attempt to fulfil many financial companies in issuing Sukuk and the needs of the Muslim world, this study aims to provide the new structure of Sukuk. The study proposes a design of securitization by combining two contracts of Sukuk into one Sukuk structure. The constructed idea will use a model of life cycle hypothesis to support the Sukuk issuing companies in maintaining their incomes. It also explains the cycle cash flow and asset movement as well as the calculation of Net Present Value (NPV) of the project.


Processes ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 1568
Author(s):  
Federico Galli ◽  
Jun-Jie Lai ◽  
Jacopo De Tommaso ◽  
Gianluca Pauletto ◽  
Gregory S. Patience

Methane is the second highest contributor to the greenhouse effect. Its global warming potential is 37 times that of CO2. Flaring-associated natural gas from remote oil reservoirs is currently the only economical alternative. Gas-to-liquid (GtL) technologies first convert natural gas into syngas, then it into liquids such as methanol, Fischer–Tropsch fuels or dimethyl ether. However, studies on the influence of feedstock composition are sparse, which also poses technical design challenges. Here, we examine the techno-economic analysis of a micro-refinery unit (MRU) that partially oxidizes methane-rich feedstocks and polymerizes the syngas formed via Fischer–Tropsch reaction. We consider three methane-containing waste gases: natural gas, biogas, and landfill gas. The FT fuel selling price is critical for the economy of the unit. A Monte Carlo simulation assesses the influence of the composition on the final product quantity as well as on the capital and operative expenses. The Aspen Plus simulation and Python calculate the net present value and payback time of the MRU for different price scenarios. The CO2 content in biogas and landfill gas limit the CO/H2 ratio to 1.3 and 0.9, respectively, which increases the olefins content of the final product. Compressors are the main source of capital cost while the labor cost represents 20–25% of the variable cost. An analysis of the impact of the plant dimension demonstrated that the higher number represents a favorable business model for this unit. A minimal production of 7,300,000 kg y−1 is required for MRU to have a positive net present value after 10 years when natural gas is the feedstock.


Water ◽  
2019 ◽  
Vol 11 (3) ◽  
pp. 458 ◽  
Author(s):  
Agnieszka Stec ◽  
Martina Zeleňáková

Decentralized water systems are perceived as solutions that not only save water, but also as a way to partially or completely become independent from centralized suppliers. Taking this into account, an analysis of the effectiveness of rainwater harvesting systems (RWHS) for toilet flushing in existing academic facilities located in Poland and in Slovakia was carried out. The tests took into account the different volumes of storage tanks collecting rainwater. On the basis of two financial ratios, namely Net Present Value and Discounted Payback Period, the profitability of these systems was also assessed. The research was extended by the sensitivity analysis, which allowed determination of the impact of changes in individual cost components on the financial effectiveness of the investments considered. The results obtained clearly showed that the implementation of RWHS in the dormitory in Rzeszów was unprofitable for all tank capacities tested, and the payback period significantly exceeded the period of 30 years accepted for the analysis. Completely different results were obtained for RWHS in a dormitory located in the city of Košice, for which the financial ratios NPV (Net Present Value) and DPP (Discounted Payback Period) were very favorable. It was also confirmed by the results of the sensitivity analysis. The use of rainwater for toilet flushing caused that it was possible to achieve water savings of an average of 29% and 18%, respectively, for facilities located in Slovakia and Poland. The results of the research have a practical aspect and can provide an indication for potential investors and managers of academic facilities, similar to those analyzed in the article. Taking into account that in many countries water and sewage rates are significantly higher than in Poland and Slovakia, the cost-effectiveness of using the analyzed installation options in these countries could be even higher.


2012 ◽  
Author(s):  
Jin How Ho ◽  
Azlan Abd. Rahman

Artikel ini membincangkan kajian ringkas berkaitan analisis kos kitaran hayat terhadap langkah-langkah pembaikan pengaratan bagi jambatan dan struktur marin konkrit yang terdedah kepada karbonasi atau serangan natrium klorida daripada air laut atau sumber-sumber lain. Perisian kos kitaran hayat, Bridge LCC 2.0 digunakan untuk menjalankan analisi kitaran hayat untuk tiga kes kajian melibatkan kaedah nilai bersih kini. Keputusan kajian menunjukkan analisis kos kitaran hayat berkeupayaan untuk membantu jurutera dan agensi pengangkutan dalam menilai keputusan penyelenggaraan yang efektif berkaitan dengan masalah pengaratan. Ia boleh digunakan sebagai alat analisis ekonomi kejuruteraan yang membantu mantaksir kos-kos perbezaan dan membuat pilihan terhadap langkah pembaikan pengaratan yang berkesan. Analisis kos kitaran hayat bagi langkah pembaikan dipengaruhi oleh banyak pemboleh ubah seperti kos permulaan, kos penyelenggaraan, tahun kekerapan, dan jangka masa analisis. Amalan terbaik untuk analisis kos kitaran hayat bukan sahaja mengambil kira perbelanjaan oleh agensi, tetapi perlu mempertimbangkan kos-kos oleh pengguna dan analisis sensitiviti di sepanjang jangka hayat sesuatu langkah pembaikan. Kata kunci: Analisis kos kitaran hayat, jambatan konkrit, pengaratan, langkah, pembaikan, pemulihan struktur, keberkesanan kos, kaedah nilai bersih kini (NPV) This paper discusses a short study on life cycle cost analysis (LCCA) on corrosion remedial measures for concrete bridges and marine structures, which are subjected to carbonation or ingress of sodium chloride from sea water and other sources. Life cycle costing software, Bridge LCC 2.0, was used to perform life cycle cost analyses on three case studies, based on net present value method. The analysis of the results showed that LCCA is capable of assisting engineers or transportation agencies to evaluate optimum maintenance decisions in corrosion–related problems. It can be used as an engineering economic analysis tool that helps in qualifying the differential costs and choosing the most cost–effective corrosion remedial measures. Life cycle costs for the remedial measures are influenced by many costing variables such as initial costs, periodic maintenance costs, frequency years and analysis period. The best practice of LCCA should not only consider agency expenditures but also user costs and sensitivity analysis throughout the service life of a remedial measure. Key words: Life cycle analysis, concrete bridges, corrosion, remedial measures, structural rehabilitation, cost-effective, net present value method (NPV)


1994 ◽  
Vol 24 (9) ◽  
pp. 1758-1765 ◽  
Author(s):  
David J. Anderson ◽  
B. Bruce Bare

A deterministic dynamic programming formulation of the transition uneven-aged stand management problem is presented. Using a previously published northern hardwoods growth model, a forward recursive, discrete, two-state problem that maximizes the net present value of harvested trees at each stage is developed. State variables represent the total number of trees and the total basal area per acre. A neighborhood storage concept previously published is used to reduce the number of states considered at each stage. Two harvest allocation rules are used to assign the harvested basal area to individual diameter classes. Terminal end point conditions and stage to stage sustainability are not required. Results from four base runs of the model are presented and compared with previously published results. Each run produces significantly different optimal paths, with one showing a higher net present value than any previously published. Sensitivity runs illustrate the impact of changes in interest rates, width of neighborhood storage class, and initial conditions. Dynamic programming offers promise for analyzing uneven-aged stand management problems.


2005 ◽  
Vol 26 (3) ◽  
pp. 287-294 ◽  
Author(s):  
Katinka Weinberger

Background Evaluation of agricultural research often neglects consumption and nutrition aspects. Yet agricultural research can address micronutrient malnutrition by improving both quantity and quality of food intake. Objective To briefly review the conceptual linkages between agriculture and nutrition, to estimate the strength of the relationship between iron intake and productivity outcomes, and to estimate the nutritional benefit of improved mungbean varieties in terms of net present value. This paper presents a methodology for assessing the nutritional impact of mungbean, and summarizes current impact evidence on the path from mungbean research to consumption. Methods A consumption study was conducted among female piece-rate workers in Pakistan to analyze the impact of iron consumption on productivity, measured in wages. A two-stage least-squares analysis was used to estimate the elasticity of iron intake on wages. The results derived from this study were extrapolated to country level using secondary data sources. Results We found that anemia among women was widespread. Approximately two-thirds of women suffered from mild or severe anemia (Hb < 12 g/dL). We found the elasticity of bioavailable iron on productivity measured in wages was 0.056, and the marginal effect was 9.17 Pakistani rupees per additional mg of bioavailable iron consumed. Using the model results we estimated the impact of mungbean research on nutrition, in terms of productivity effects, and found it was substantial, ranging from US$7.6 to 10.1 million cumulative present value (in 1995 US$ at 5% discount rate). Conclusions Agriculture certainly plays an important role in the reduction of malnutrition. Agricultural research has greatly contributed to the reduction of hunger and starvation by providing millions of hungry people with access to low-cost staple foods. Now, as the challenge shifts to the reduction of micronutrient deficiencies, more efforts must be directed toward crops high in micronutrients, such as pulses and vegetables.


1988 ◽  
Vol 64 (2) ◽  
pp. 127-131 ◽  
Author(s):  
Kenneth J. Mitchell

Intensive forest management requires an understanding of the effect that silvicultural treatments have on wood properties, standing yield, log quality, product value, and net present value. These needs are addressed by a system of models (SYLVER) which includes the Tree and Stand Simulator (TASS), Root Rot Simulator (ROTSIM), Sawmill Simulator (SAWSIM), and the new Financial Analysis System (FAN$Y). The latter will be used by field foresters to compare the merits of candidate treatments for specific stands. Key words: Silviculture, growth and yield, juvenile wood, log quality, end-product value, net present value, Pseudotsuga menziesii, Phellinus weirii, modelling, TASS, ROTSIM, SAWSIM, FAN$Y, SYLVER.


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