Most of the plant’s equipment and machinery have an extended life-cycle and a significant part of the costs are incurred after obtaining them: design, engineering, procurement, production, assembly, transportation, maintenance, repair. etc. therefore, Life Cycle Costing (LCC) is an important factor when considering buying or replacing an equipment. In this course, we will cover cost models and analysis, cost elements, investment analysis, LCC as an engineering tool and LCC as a management tool. Here you will learn when to buy new equipment or how to calculate the best time to replace existing equipment. You will also learn how to predict the life cycle costs of the most critical physical assets.
This course introduces the methodology and main principles of Life Cycle Cost Management. By the end of the course, you are expected to be able to carry out cost estimation tasks using available information, modeling uncertainty, necessary guides and books as well as understand and interpret the results. You will learn about activity-based costing, various life cycle costing methodologies, Monte Carlo simulations, modeling uncertainty, economic profit calculations as well as net present value estimations. Moreover, you will learn how to combine these approaches to provide the best cost management advice to decision-makers.