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12 - MSE - Maintenance, Scheduling, Planning


MSE 156 - Life Cycle Costing (LCC)

Code Start Date Duration Venue
MSE 156 04 September 2022 5 Days Online Registration Form Link
MSE 156 31 October 2022 5 Days Istanbul Registration Form Link
MSE 156 27 November 2022 5 Days Online Registration Form Link
MSE 156 26 December 2022 5 Days Istanbul Registration Form Link
Please contact us for fees

 

Course Description

Life Cycle Costing (LCC) enables participants to evaluate the combined capital and operating costs of different ways of managing built assets and delivering construction projects. Assets can range from entire estates down to specific systems and components and projects can range in size from small plant replacements, to major refurbishment and new-build works. But the same life cycle costing principles must be applied in each case. This course takes delegates from the very basics of Life Cycle Costing, through to advanced applications of the technique in realistic situations.

Course Objectives

  • Have an appreciation of the complexity of sensitivity analysis
  • Know the methodology and main principles of Life-Cycle-Cost Management
  • Carry out any cost estimation task using available information
  • Learn about Activity-Based Costing and various Life-Cycle Costing methodologies
  • Learn how to combine these approaches to produce the best overall cost management advice to a decision-maker

Who Should Attend?

  • Facility Managers
  • Designers 
  • Contractors 
  • Product Manufacturers
  • These who need to calculate life cycle costs to help make better decisions

Course Details/Schedule

Day 1

  • Introduction To Life Cycle Costing (LCC)
  • Definitions of Terms for LCC
  • Understanding Time Value of Money
  • How Can You Use Life Cycle Costing?
  • Cost models and analysis
  • Cost elements
  • Investment analysis
  • LCC as an engineering tool
  • LCC as a management tool

Day 2

  • Cost models and analysis 
  • Cost elements Investment analysis 
  • LCC Structure
  • Important financial concepts: net present values
  • The accounting view and engineering view
  • Checklists for acquisition and sustaining costs
  • Effectiveness issues
  • Defining the LCC problem
  • Choosing analytical cost models
  • Preparing cost profiles by year
  • How equipment lives and dies

Day 3

  • Using Excel for Lifecycle Costing
  • Analyzing and interpreting Life cycle Costing Results
  • LCC Analysis
  • Pareto charts: separating the vital few cost contributors
  • Sensitivity analysis
  • Tradeoff conditions
  • Adding uncertainty to LCC: Monte Carlo models
  • The value of LCC: buyer and seller viewpoints
  • Databases for failure information
  • LCC decisions for maintenance projects

Day 4

  • LCC Cycle: Practical Implication
  • Sustaining cost templates
  • Effectiveness equation trade-off tools for LCC
  • Alternatives with acquisition/ supporting costs
  • Cost profiles for each year of study
  • Adding uncertainty to the LCC results
  • How both end-user and suppliers use LCC
  • Discounted cash flow and net present value
  • Acquisition cost templates
  • SAE LCC cost template

Day 5

  • Trade-off format benchmark diagrams
  • Preparing the cost breakdown tree
  • Gathering cost estimates and cost models
  • Break-even charts for alternatives
  • Sensitivity analysis of high-cost items
  • Selecting a preferred course of action using LCC