Total life cycle cost was calculated using following formula, LCC = C + R + A + M + E – S Where; = the initial cost; = the present value of replacement cost;
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Why you need to calculate the life cycle cost of equipment?
Why you need to calculate the life cycle cost of equipment. If you only had limited plant and equipment, life cycle cost wouldn’t be quite so critical. However, as modern businesses have so much operational plant and so many pieces of equipment, it’s imperative to manage all your assets correctly in terms of productivity and safety.
How important is the life cycle of your plant and equipment?
If you only had limited plant and equipment, life cycle cost wouldn’t be quite so critical. However, as modern businesses have so much operational plant and so many pieces of equipment, it’s imperative to manage all your assets correctly in terms of productivity and safety.
What is the life cycle cost of a pumping system?
et present Life Cycle Cost () As shown in figure 14, the total cost of the pumping system – including the initial investment cost, energy consumption, maintenance, environmental costs and operational costs – is $1,620,000 for System A and $1,215,000 for System B.
Is an LCC analysis included in the pump system specifications?
It is also recommended that an LCC analysis is included in the pump system specifications to ensure that the station with the lowest life cycle cost is selected. Conclusion2288 . Life cycle cost .
How do you calculate the life cycle cost of equipment?
Life Cycle Cost for the system and equipment to be evaluated equals the sum of the following cost elements: • Capital Cost. Operating Cost. Cost of Deferred Production. = The total standard deviation.
What are the steps involved in the life cycle cost calculation?
Life cycle costing calculation generally involves adding six types of costs; purchase costs, maintenance costs, operational costs, financing costs, depreciation costs, and end-of-life costs. The summation of these costs gives the life cycle costing value.
What is life cycle cost estimating?
A Life-Cycle Cost (LCC) Estimate (See Cost Estimating) is the estimated cost of developing, producing, deploying, maintaining, operating, and disposing of a system over its entire lifespan. The estimate is prepared for major program reviews to include Milestone A, B, and C.
How do you calculate life cycle cost in Excel?
1:0024:40Life Cycle Costing (LCC) in Excel 1 - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo we can do it a number of different ways um in excel we can use the calculation that we looked atMoreSo we can do it a number of different ways um in excel we can use the calculation that we looked at in class which is one over the power of one plus.
What are the life cycle cost components?
LCC can be divided into two major parts first cost of ownership which includes (procurement cost, depreciation cost, interest, inflation, and disposal cost) and second cost of operations which includes (operations, maintenance, downtime, obsolescence, operator training, cost of inventory). Fig.
How do you calculate product life cycle?
Look for new products that have never been sold. ... Watch commercials and press releases announcing new products. ... Find products that were recently released which have rapidly increasing sales. ... Look at products that have enjoyed a level sales rate at its peak have reached the maturity stage of the life cycle.More items...
What is life cycle cost PDF?
Life cycle cost (LCC) is an important technique for evaluating the total cost of ownership between mutually exclusive alternatives. Executive Order 13123 requires government agencies to use life cycle cost analysis (LCCA) to minimize the government's cost of ownership.
What is operational cost?
Operational costs cover the labor costs for normal operation of the pumping system. This includes, for example, normal wear and tear, system supervision and keeping the station clean. Operational costs do not include costs attributable to energy or maintenance of the pump station.
Is maintenance cost a major factor in energy costs?
For example, in countries with low energy prices or for stations that run infrequently, energy costs may not be a major factor. Similarly, maintenance costs will not be a major factor in locations where labor is inexpensive.
What are the three levels of wastewater treatment?
A wastewater treatment system covers three levels: primary, secondary, and advanced treatments. The equipment chosen to handle each level of water treatment must fit in the space you have and do the job at a level that meets federal, state, and local requirements.
What is the advanced stage of water filtration?
Biological Treatment: The advanced stage of water filtration is the removal of nutrients like nitrogen and phosphorus that can cause serious problems in bodies of water like a lake. Those nutrients can cause algae blooms that threaten humans, animals, and fish.
How many gallons of water does a family of 4 use?
Per the EPA, an average family of four uses around 400 gallons per day. In a city where the popular is well over 10,000 people, this system may not be enough. This is why it’s important to look at your current population and how quickly the population is expanding.