LCC: Life Cycle Cost Analysis
Life Cycle Cost is important for RFP bids, and is also used for data driven logistics and maintenance policy decision making.
LCC calculates the overall cost of ownership and asset operation while accounting for anticipated life span and availability.
The LCC module includes design, development, operation, corrective maintenance, preventive/ predictive maintenance, spare parts, downtime and damage, loss of production, disposal and additional costs.
LCC provides a methodology for computing the overall cost of asset management policy or acquisition alternatives. It indicates the overall cost of owning and operating an asset in relation to its anticipated life span. Typical acquisition costs for a system may include:
- Design and development
- Corrective maintenance
- Preventive maintenance
- Spare parts
- Downtime and damage
- Loss of production
and any other costs. apmOptimizer shows all cost drivers using Pareto tables which drill down to the lowest assembly level.