Life Cicle Cost Analysis
Life Cycle Cost Analysis (LCC) is an essential decision support tool for controlling the initial and the future cost of any system ownership. If your organization acquires or operates complex, high-cost systems (e.g. building, plant equipment, vehicles etc.) operating and supporting cost may exceed your expectation. LCC can be used to evaluate the cost of a vast range of projects, from a complex site to a specific system component.
BQR's Life Cycle Cost module provides a methodology for computing the overall cost of project alternatives and indicates the lowest overall cost of ownership for its anticipated life span. Typical acquisition costs for a system may include design and development costs, operating costs, corrective maintenance cost, preventive maintenance cost, cost for spares, downtime and damage costs, loss of production, disposal costs or any other costs.
Key Benefits of the LCC:
- Trade-offs of various alternatives
- Maintenance and logistic costs reduction
- Evaluation of various options in operation and maintenance
- Accurate total cost forecasting
- System development option analysis
- Break even analysis
- Sensitivity calculations, Net Present Value (NPV) computations, future and discount cost
- LCC provides early identification of cost drivers
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In the design phase:
- Design the optimal maintenance structure in advance
- Developing system maintainability and specific system requirements
In the maintenance phase:
- Quantifying and justifying modification, upgrades or replacement solution
- Introducing early stage maintenance alternatives to decrease cost or increase performance and availability
- Making cost and performance trade-off decisions
- Quantifying cost saving strategies
- Calculates cost drivers & full cost of each life cycle phase (investment, development, production, delivery, operation & disposal) as well as, the total life cost using maintenance decisions, defined by user or recommended by CAME optimization modules
- Compares results of different scenarios in united Trade-off table& graph. This comparison enables an expert selection of the most appropriate scenario (the project variants) considering cost & reliability parameters, simultaneously. Usually the better are the reliability parameters, the more expensive is the product & the less expensive is the maintenance. The problem is to select the scenario with appropriate reliability parameters (Mission reliability, Availability, MTBF, Down time) at the minimal total life cycle cost
- Presents Reliability/ Availability vs. Cost results of all considered scenarios/options, thus enabling the user to choose the appropriate scenario/option or to define a new one
- Considers multi-level systems (with blocks indenture breakdown) or 1 level system for ILS proposals
- Provides friendly cost data input for different scenarios
- Generates wide range of reports: summary, detailed, Pareto (sorted by cost drivers) and input data. Each report can be generated by years & as total values. Pareto and detailed reports are effective for analytical purposes, when user seeks the factors of different cost drivers
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