Life-cycle cost tutorials

Life cycle costs (LCC) are cradle to grave costs summarized in a three section, three hour tutorial: 1. LCC concepts and applications are described as an overview. Details are provided about how costs are gathered and merged to develop a LCC number usable as a figure of merit. References are provided for additional study—some accounting math is used in this 1.5 hour long section. 2. Failure rate data is used for LCC. Examples show how detailed calculations are prepared and evaluated for developing engineering estimates of LCC in hydrocarbons processing industries—some engineering math is used in this 1.0 hour long section. 3. Uncertainties are considered in preparing LCC values. Direction is provided for use of inexpensive software solutions using DOS and Windows based software programs—some statistics are used in this 0.5 hour long section. LIFE CYCLE COST DEFINITIONS Life cycle costs are summations of cost estimates from inception to disposal for both equipment and projects as determined by an analytical study and estimate of total costs experienced during their life. The objective of LCC analysis is to choose the most cost effective approach from a series of alternatives so th