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

The 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

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
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.