1st Edition

Life Cycle Costing for Engineers

By B.S. Dhillon Copyright 2009
    222 Pages 15 B/W Illustrations
    by CRC Press

    222 Pages 15 B/W Illustrations
    by CRC Press

    Cradle-to-grave analyses are becoming the norm, as an increasing amount of corporations and government agencies are basing their procurement decisions not only on initial costs but also on life cycle costs. And while life cycle costing has been covered in journals and conference proceedings, few, if any, books have gathered this information into an easily accessible resource. Eliminating the need to consult many different sources, Life Cycle Costing for Engineers brings together up-to-date life cycle costing concepts and explains their application in various industrial sectors.

    The author sets the scene with a chapter on fundamental economics followed by a chapter on reliability and maintainability, providing background information and platform for further understanding. He then discusses life cycle costing fundamentals, models and estimation methods, reliability, quality, safety, and manufacturing costing, and maintenance, maintainability, usability, and warranty costing. The book includes life cycle costing for computer systems and software, transportation systems, aircraft turbine engines, cargo ships, rail systems, civil engineering structures, and energy systems. An in-depth look at cost estimation models and engineering reliability and maintainability topics such as bathtub hazard rate curve, common reliability networks, general reliability, mean time to failure, and hazard rate formulas round out the coverage.

    Filled with examples, tables, figures, and equations, this book integrates life cycle costing concepts for use in industrial and other sectors. It provides a modern treatment of the subject that can easily be applied to any industry.

    Introduction
    Background
    Terms and Definitions
    Useful Information on Life Cycle Costing
    Scope of the Book
    Problems
    References
    Life Cycle Costing Economics
    Introduction
    Simple Interest
    Compound Interest
    Effective Annual Interest Rate
    Time-Dependent Formulas for Application in Life Cycle Cost Analysis
    Depreciation Methods
    Problems
    References
    Life Cycle Costing Fundamentals
    Introduction
    Need and Information Required for Life Cycle Costing
    Life Cycle Costing Application Areas
    Life Cycle Costing Activities and Associated Steps
    Approach for Incorporating Life Cycle Costing into the Planning Process for Proposals and Contracts
    Areas for Evaluating a Life Cycle Costing Program
    Life Cycle Costing Data Sources
    Life Cycle Costing Advantages and Disadvantages and Related Important Points
    Life Cycle Costing Concept Application in Selecting Equipment from Competing Manufacturers
    Problems
    References
    Life Cycle Cost Models and Cost Estimation Methods
    Introduction
    Types of Life Cycle Cost Models and Their Inputs
    General Life Cycle Cost Models
    Specific Life Cycle Cost Models
    Cost Estimation Methods
    Problems
    References
    Reliability, Quality, Safety, and Manufacturing Costing
    Introduction
    Reliability Cost Classifications
    Models for Estimating Costs of Reliability-Related Tasks
    Quality Cost Classifications and Their Distribution in the Industrial Sector
    Quality Cost Indexes and Quality Cost Reduction Approach
    Safety Cost and Its Related Facts and Figures
    Safety Cost Estimation Models
    Manufacturing Costs
    Manufacturing Cost Estimation Models
    Problems
    References
    Maintenance, Maintainability, Usability, and Warranty Costing
    Introduction
    Reasons for Maintenance Costing, Factors Influencing Maintenance Cost, and Types of Maintenance Costs
    Equipment Maintenance Cost
    Preventive and Corrective Maintenance Labor Cost Estimation
    Repair Manpower, Maintenance Material, and Spare and Repair Parts Costs
    Maintenance Cost Estimation Models
    Maintenance Cost Data Collection
    Maintainability Investment Cost Elements
    Manufacturer Warranty and Reliability Improvement Warranty Costs
    Usability Costing and Related Facts and Figures
    Principal Costs of Ignoring Product Usability and Product Usability Cost Estimation
    Problems
    References
    Computer System Life Cycle Costing
    Introduction
    Computer System Life Cycle Cost Models
    Computer System Maintenance Cost
    Software Costing and Related Difficulties
    Software Life Cycle Cost Influencing Factors and Model
    Software Cost Estimation Methods and Models
    Problems
    References
    Transportation System Life Cycle Costing
    Introduction
    Aircraft Life Cycle Cost
    Aircraft Turbine Engine Life Cycle Cost
    Aircraft Cost Drivers
    Cargo Ship Life Cycle Cost
    Operating and Support Costs for Ships
    Urban Rail Life Cycle Cost
    Car Life Cycle Cost
    City Bus Life Cycle Cost Estimation Model
    Problems
    References
    Civil Engineering Structures and Energy Systems Life Cycle Costing
    Introduction
    Building Life Cycle Cost
    Steel Structure Life Cycle Cost
    Bridge and Waste Treatment Facilities Life Cycle Costs
    Building Energy Cost Estimation
    Appliance Life Cycle Costing
    Energy System Life Cycle Cost Estimation Model
    Motor, Pump, and Circuit-Breaker Life Cycle Costs
    Problems
    References
    Miscellaneous Cost Estimation Models
    Introduction
    Plant Cost Estimation Model
    Reliability Acquisition Cost Estimation Model
    Development Cost Estimation Model
    Program Error Cost Estimation Model
    Cooling Tower Cost Estimation Model
    Storage Tank Cost Estimation Model
    Pressure Vessel Cost Estimation Model
    New Aircraft System Spares Cost Estimation Model
    Satellite Procurement Cost Estimation Model
    Single-Satellite System Launch Cost Estimation Model
    Tank Gun System Life Cycle Cost Estimation Model
    Weather Radar Life Cycle Cost Estimation Model
    Problems
    References
    Introduction to Engineering Reliability and Maintainability
    Introduction
    Reliability and Maintainability Definitions
    Bathtub Hazard Rate Curve
    General Reliability, Mean Time to Failure, and Hazard Rate Formulas
    Common Reliability Networks
    Reliability and Maintainability Relationship
    Maintainability Measures
    System Availability and Unavailability
    Reliability and Maintainability Tools
    Problems
    References
    Bibliography: Literature on Life Cycle Costing
    Index

    Biography

    B.S. Dhillon is a professor in the Department of Mechanical Engineering at the University of Ottawa.

    "… very concise, quite short, and easy to follow. … The text is nicely supported with figures, equations and example problems. … I would recommend it as a great source for a wide range of life cycle cost models and especially as a source to understand and be able to relate one model to another. It would make an ideal textbook for an undergraduate course on life cycle costing and as a resource for a practitioner in the industrial/manufacturing industry that needs a suite of potential life cycle cost models with which to make capital equipment and facility spending decisions on a life cycle cost basis."
    —Professor Douglas Gransberg, University of Oklahoma