ASSET LIFE CYCLE COSTING

Duration

3 Days Program

Locations

New Zealand

Upcoming Classes

TBA

Course Overview

Life Cycle Costing is rapidly gaining popularity as more organizations recognize its role in making long-term optimal decisions. The idea of “buying the cheapest” is losing its appeal as more managers realize that the cheapest acquisition costs rarely coincide with the least expensive buy in the long run. This workshop combines Life Cycle Costing decisions with many real-world examples in an interactive and hands-on setting. It will help those responsible for LCC related decisions learn when to buy a new asset,  how to 

determine the best time to replace an existing one,and how to forecast the future life cycle costs of a fleet of assets.The applications of the models discussed in the workshop will be demonstrated by means of real case studies. We will introduce software packages called AGE/CON for mobile equipment replacement decisions and PERDEC for fixed capital equipment decisions and demonstrate how to use them to solve LCC problems. We will also display a software package that can be used to predict future operation and maintenance costs.

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Learning
Objectives

       For Employers:
  • Improved basis for evaluating the value proposition of alternative options for achieving business outcomes, known as “optioneering”.
  • Facilitates the opportunity to factor in possible future business specific factors as well as political, economic, social, technical, legal and environmental forecasts and thus provides a basis for more informed decision making.
  • Drives effective asset investment outcomes through understanding the balance between capital intensity and operational performance.

    For Employees: 
  • The ability to generate optioneering models demonstrating the balance between capital intensity and operational performance taking account of possible future business specific dynamics and acilitating the application of multifarious and potentially diverse assumptions relating to potential political, economic, social, technical, legal and environmental influences on future business utcomes.
  • The ability to develop and apply predictive modelling techniques in evaluating potential future business outcomes of asset acquisition decisions made in today’s world based on possible future scenarios .
  • The process and techniques can be applied in evaluating new capital investment alternatives as well as sustaining capital alternatives.
  • Provides decision makers with a verifiable and informed process for investment and business decision making as well as providing robust means of engaging options considered through that process.

Skills Gained

Some skills that can be acquired on course completion.

Buying and identifying the best asset among several
competing alternatives.

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Arrive at the economic life of an asset where its utilization declines as it ages.

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Methodologies for monitoring the performance of an
individual asset.

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Work with AGE/CON and PERDEC software packages to
perform economic life calculations.

%

Predict future O&M costs when there are little data available.                             

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Course Outline

This is a three-day course taking delegates from the very basics of life cycle costing, through to advanced application of the technique in realistic situations.

Day 1

1. Introduction to the importance of adopting a Whole of Life-Cycle approach.
2. Understanding the Basics.
3. The Asset Management System.
4. Lifecycle Planning Frameworks.



Day 2

1. Whole of Life-Cycle Cost Analysis.
2. Case Studies of Decision Optimisation.
     2.1 Modelling – “Optioneering”
3. Outcomes of 7 Optioneering Case Studies.
4. The Workings Behind the Optioneering Outcomes.

Day 3

1. Whole of Life-Cycle Cost Analysis – Practical Application
2. Workshop Sessions
3. Conclusion and Q&A Session
4. BII Certificates




Who Should Attend?

1. Capital Planners
2. Asset Managers
3. Maintenance   Managers/Planners
4. Asset Replacement Planners
5. Planning and Scheduling Department 
6. Capital Project Planners
7. Reliability and Maintenance Managers and Engineers.
8. Project Managers
9. Maintenance Supervisors/Superintendents

(All prices are in US Dollars.)

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