Life Cycle Costing (LCC) Analysis

Determine whole of life costs. Identify optimum replacement ages. Compare alternatives.

A life cycle costing analysis determines the "whole of life" cost of asset ownership from “cradle to grave”, taking into account design, purchase, installation, commissioning, operations, maintenance and disposal. The whole of life cost is an important aspect in alternative scenario comparisons, where lowest life cost is a key target. Optimum replacement ages for major assets can also be determined on the basis of a whole of life ownership cost projection.

Are you experiencing any of these problems?

• Unknown optimum replacement ages for key assets
• Major asset selection is subjective, with whole of life cost not considered appropriately

ARMS Reliability generate whole of life cost models for major assets, using our detailed equipment characteristics and maintenance cost forecasts as a base.  The whole of life cost models have been used to ascertain the optimum replacement age of major assets or to determine the optimum investment alternative from a range of competing options.

How ARMS Reliability Helps

Optimum asset replacement age

The optimum replacement age of an asset is an important element in the asset strategy and one that should form part of the long term financial planning. Determining the optimum replacement age is dependent on several key factors including performance, degradation, costs, effectiveness and obsolescence.

Base major asset selection on whole of life cost

When considering several alternatives for major asset selection a whole of life asset model supports selection of the asset that will deliver the best performance at the best cost.