Life cycle costing

Life cycle cost analysis is the proper tool for evaluation of alternative systems (11,12). The total cost of a system, including energy cost, maintenance cost, interest, cash flow, equipment replacement and/or salvage value, taxes, inflation, and energy cost escalation, can be estimated over the useflE life of each alternative system. A Hst of life cycle cost items which may be considered for each system is presented in Tables 3 and 4. Reference 14 presents a cash flow analysis which also includes factors such as energy cost escalation. 

Explosion-welded constmction has equivalent or better properties than the more compHcated riveted systems. Peripheral benefits include weight savings and perfect electrical grounding. In addition to lower initial installation costs, the welded system requires tittle or no maintenance and, therefore minimizes life-cycle costs. Applications of stmctural transition joints include aluminum superstmctures that are welded to decks of naval vessels and commercial ships as illustrated in Figure 11. 

The difference between life cycle costs and the traditional accounting cost is that traditional costs are fairly easy to quantify, whereas life cycle costs are usually difficult to quantify and are usually either lumped iato general overhead costs or ignored altogether. They are very real, however, and when examined ia detail and fully quantified, the economics of composites allow them to displace the traditional materials. 

LCC Life cycle costing WRAP Waste reduction always pays... 

Economic Factors These inchrde capital cost (eqrripment, installation, engineering, etc.), operating cost (rrtUities, maintenance, etc.), emissions fees, and life-cycle cost over the expected eqrripment lifetime. 

Radial fit bolts are a special feature used in all types of turbomachinery. They are of increasing importance to users that are both reliability-minded and concerned about life-cycle costs. The radial fit coupling bolt was originally developed for coupling steam turbine shafts by Pilgrim International in Oldham, UK. It is equally useful to coupling other equipment, including, of course, hot gas expander shafts. 

Related to competitiveness measures - improved quality, compressed lead time, reduced life-cycle costs, increased flexibility, improved productivity, more satisfied customers... 

When a single technique is employed only local life-cycle cost minimization is achieved. If the global life-cycle cost is to be minimized, a number of techniques have to be applied (Watson et al., 1996). In this case, tools and techniques shouldn t compete with each other, but be complementary in the product development process. The correct positioning of the various off-line tools and techniques in the product development process, therefore, becomes an important consideration in their effective usage. Patterns of application have been proposed by a number of workers over several years (Brown et al., 1989 Jakobsen, 1993 Norell, 1993) and the importance of concurrency has been highlighted as a critical factor in their use (Poolton and Barclay, 1996). 

Combined Cycle Power Plant Life Cycle Cost Initial Cost... 

The new purchasing mantra for the new utility plants is life cycle cost and to properly ensure that this is achieved a total performance condition monitoring strategy is unsurpassed. 

Figure 19-9. Life cycle costs for Combined Cycle Power Plants.

It is therefore elear why the new purehasing mantra for a utility plant, or for that matter of fact, for any major plant operating large machinery is life cycle cost. ... 

Maintenance practices are being combined more and more with operational practices to ensure that plants have the highest reliability with maximum efficiency. This has led to the importance of performance condition monitoring as a major tool in the operation and maintenance of a plant. Life cycle costs, rightly so, now drive the entire purchasing cycle and thus the... 

If a life cycle analysis were conducted the new costs of a plant are about 7-10% of the life cycle costs. Maintenance costs are approximately 15-20% of the life cycle costs. Operating costs, which essentially consist of energy costs, make up the remainder, between 70-80% of the life cycle costs, of any major power plant. Thus, performance evaluation of the turbine is one of the most important parameter in the operation of a plant. 

A new maintenance system is introduced based on the new mantra for the selection of all equipment Life Cycle Cost. This new system especially for major power plants is based on the combination of total condition monitoring, and the maintenance principles of total productive maintenance, and is called the Performance Based Total Productive Maintenance System. ... 

Boyce, M.P., Managing Power Plant Life Cycle Costs, International Power Generation, pp. 21-23, July 1999. 

In considering the economics of process alternatives, it is important to think about the total life cycle costs. There is an increasing interest in this concept in the environmental area, with a recognition of the need to incorporate waste treatment, waste disposal, regulatory compliance, potential liability for environmental damage, and other long term environmental costs into project economic evaluation. Similarly, we must consider life cycle safety costs. Some examples of factors which should be considered include ... 

An ounce of Inherent Safety is worth a pound of life cycle cost. 

The Chemist and Real Business. .. Life Cycle Cost... 

The life cycle cost of a process is the net total of all expenses incurred over the entire lifetime of a process. The choice of process chemistry can dramatically affect this life cycle cost. A quantitative life cycle cost cannot be estimated with sufficient accuracy to be of practical value. There is benefit, however, in making a qualitative estimate of the life cycle costs of competing chemistries. Implicit in any estimate of life cycle cost is the estimate of risk. One alternative may seem more attractive than another until the risks associated with product liability issues, environmental concerns, and process hazards are given due consideration. Value of life concepts and cost-benefit analyses (CCPS, 1995a, pp. 23-27 and Chapter 8) are useful in predicting and comparing the life cycle costs of alternatives. 

The Broad View and Life Cycle Cost of Alternatives... 

Tools to apply such a more broad view of a process would pay inherently safer dividends. One tool might include instructions on how to estimate the life cycle cost of proposed alternative solutions. Such a tool is not presently fully developed and available in the public domain. Training to assist in estimating life cycle cost is needed. 

Life cycle cost (LCC) calculations are made to make sure that both the purchase price and the operating costs for life cycle are considered in investment decisions. In the chapter the basic calculation methods and sensitivity analysis are introduced. Examples of calculation results and references to LCC information sources are given. 

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