Monday, 23 June 2014 00:00

S813: Assets: Economical Replacement and Life Cycle Management

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Both the income from, and the cost of equipment are strongly dependent on Life Cycle Cost Management

S813 photo3The life cycle cost of a system does not start at system procurement, but at the moment that somebody has the idea that such system should exist. Such idea is then typically passed on to a designer / design team, who starts designing the system (through the generic design phases of (i) conceptual design, (ii) preliminary design, and (iii) detailed design). The design process normally also includes the system development process, involving the construction and testing of prototypes.

These early stages of the life cycle are critically important, because a very high proportion of the total system life cycle costs are committed at these early stages through the design decisions that are made.

Our aim is then to studying life cycle costing, so to attain an understanding of how to minimise the costs over the life cycle of the equipment, firstly through design inputs, but also through meaningfully influencing the maintenance and operation of the equipment over its operational life.

Course Content

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Day 1 - Foundational Facts

  • Introduction
  • Stages in the Life Cycle
  • Basic principles
  • Basic concepts
  • Annual Compounding

Day 2 - Engineering Economics

  • Test 1
  • Valuation Models
  • Methods for Comparing Different Projects
  • Choosing Among Investment Alternatives

Day 3 - Life Cycle Analysis

  • Test 2
  • Life Cycle Cost Definitions
  • Introduction
  • Why use LCC?
  • What Goes into LCC?
  • Trade-off Tools for LCC
  • Engineering Facts
  • Adding Uncertainty to the LCC Results
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Day 4 - Equipment Replacement

  • Test 3
  • Equipment Replacement and Retirement
  • Depreciation and Taxes

Day 5 - Estimation

  • Estimation: Theory and Practice
  • Examination


Who Should Attend

The course is intended for Asset Managers / Maintenance Engineers, Reliability Engineers, and all others that need to know about Life
Cycle Cost Management and Capital Replacement.


Important note: Laptop computer required – refer to terms and conditions on Course Registration form, and footnote on the Course Listing.

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Credits 12*, level 6**                      CPD Points: 5

* The course comprises 60 hours of study, of which 40 hours are in class, with a further 20 hours preparation for tests and the final examination.

**Higher Diploma level


 Textbook Provided

LCC Schaums

Read 11573 times Last modified on Tuesday, 10 January 2017 17:13