Life Cycle Costing Training
Life Cycle Costing Training
Life Cycle Costing course is taking delegates from the very basics of life cycle costing, through to the advanced application of the technique in realistic situations.
Life cycle costing (LCC) enables asset managers, project sponsors, and delivery teams 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 significant refurbishment and new-build works. But the same life cycle costing principles must be applied in each case.
Thinking of projects concerning TOTEX (total expenditure = CAPEX + OPEX) is essential to know which solution to the brief is the most economical over the long term. LCC is one of the strategic priorities of the Government Construction.
Current economic pressures make it imperative to maximize asset reliability, so this training course has been researched and developed to focus on how to accurately cost equipment selection while considering actual equipment survival and failure rates as well as the total costs incurred during the equipment’s lifetime.
This will allow you to choose the most cost-effective approach from a series of available alternatives, which in the long term will save your organization time and money which is the Holy Grail of every maintenance and engineering manager!
Our Life Cycle Costing training course uses as many real-life and practical maintenance and equipment examples as possible to show you how to make long-term ownership decisions rather than only choosing the lowest cost option first.
We will take you in detail through all of the Life Cycle Costing phases, and we will answer all of your questions that relate to each stage.
You might be interested in other Construction Management programs as a next step.
- COURSE TYPE Practitioner
- COURSE NUMBER
- DURATION 2 days
- COURSE ACCREDITED BY Local Certificate
YOU WILL LEARN HOW TO
Life Cycle Cost training covers the fundamentals of how to cost projects and equipment selection while taking into account equipment survival/failure and the total cost incurred during the project life.
Our Life Cycle Costing training course uses as many real-life and practical maintenance and equipment examples as possible to show you how to make long-term ownership decisions rather than only choosing the lowest cost option first.
We will take you in detail through all of the Life Cycle Costing phases, and we will answer all of your questions that relate to each stage you will leave this training course with a detailed understanding of what Life Cycle Costing is and how to apply to your current maintenance environment.
IMPORTANT COURSE INFORMATION
Certificate
Students will receive Strategic Axis professional certificate accredited by UAE Government.
COURSE OUTLINE
Modules:
Module 1: Introduction to LCC
Cost models and analysis
Cost elements
Investment analysis
LCC as an engineering tool
LCC as a management tool
Module 2: LCC Structure
The language of money—business facts of life for engineers
Important financial concepts—net present values
Alternatives—The accounting view and engineering view
Checklists for acquisition and sustaining costs
Effectiveness issues—A*R*M*C
Defining the LCC problem—the recipe and steps
Choosing analytical cost models
Preparing cost profiles by year—why this is important
How equipment lives and dies
Module 3: LCC Analysis
Pareto charts—separating the vital few cost contributors
Sensitivity analysis— “what if” scenarios
Tradeoff conditions—how to show and how to sell
Adding uncertainty to LCC—Monte Carlo models
The value of LCC—buyer and seller viewpoints
How much can I afford to pay—quick estimates
Databases for failure information
LCC decisions for maintenance projects
Module 4: LCC Cycle - Practical Implication
Sustaining cost templates
Effectiveness equation trade-off tools for LCC
LCC facts are driven by data
Alternatives with acquisition/ supporting costs
Choosing the analytical cost model
Cost profiles for each year of study
Pareto charts of vital few cost contributors
Risk studies of high-cost items and occurrences
Adding uncertainty to the LCC results
How both end-user and suppliers use LCC
Economic business facts of life for engineers
Discounted cash flow and net present value
Acquisition cost templates
SAE LCC cost template
Trade-off format benchmark diagrams
Defining the LCC problem
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
References from the literature
Performing NPV Monte Carlo simulations
Using NPV and the effectiveness trade-offs
Solving a variety of problems to make life-cycle cost decision with Excel and costs scenarios provided by the instructor
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In The Classroom
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Live, Online
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Private Team Training
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Indiviual Private Session
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