Life Cycle Costing for Engineers

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.

IntroductionBackgroundTerms and DefinitionsUseful Information on Life Cycle CostingScope of the BookProblemsReferencesLife Cycle Costing EconomicsIntroductionSimple InterestCompound InterestEffective Annual Interest RateTime-Dependent Formulas for Application in Life Cycle Cost AnalysisDepreciation MethodsProblemsReferencesLife Cycle Costing FundamentalsIntroductionNeed and Information Required for Life Cycle CostingLife Cycle Costing Application AreasLife Cycle Costing Activities and Associated StepsApproach for Incorporating Life Cycle Costing into the Planning Process for Proposals and ContractsAreas for Evaluating a Life Cycle Costing ProgramLife Cycle Costing Data SourcesLife Cycle Costing Advantages and Disadvantages and Related Important PointsLife Cycle Costing Concept Application in Selecting Equipment from Competing ManufacturersProblemsReferencesLife Cycle Cost Models and Cost Estimation MethodsIntroductionTypes of Life Cycle Cost Models and Their InputsGeneral Life Cycle Cost ModelsSpecific Life Cycle Cost ModelsCost Estimation MethodsProblemsReferencesReliability, Quality, Safety, and Manufacturing CostingIntroductionReliability Cost ClassificationsModels for Estimating Costs of Reliability-Related TasksQuality Cost Classifications and Their Distribution in the Industrial SectorQuality Cost Indexes and Quality Cost Reduction ApproachSafety Cost and Its Related Facts and FiguresSafety Cost Estimation ModelsManufacturing CostsManufacturing Cost Estimation ModelsProblemsReferencesMaintenance, Maintainability, Usability, and Warranty CostingIntroductionReasons for Maintenance Costing, Factors Influencing Maintenance Cost, and Types of Maintenance CostsEquipment Maintenance CostPreventive and Corrective Maintenance Labor Cost EstimationRepair Manpower, Maintenance Material, and Spare and Repair Parts CostsMaintenance Cost Estimation ModelsMaintenance Cost Data CollectionMaintainability Investment Cost ElementsManufacturer Warranty and Reliability Improvement Warranty CostsUsability Costing and Related Facts and FiguresPrincipal Costs of Ignoring Product Usability and Product Usability Cost EstimationProblemsReferencesComputer System Life Cycle CostingIntroductionComputer System Life Cycle Cost ModelsComputer System Maintenance CostSoftware Costing and Related DifficultiesSoftware Life Cycle Cost Influencing Factors and ModelSoftware Cost Estimation Methods and ModelsProblemsReferencesTransportation System Life Cycle CostingIntroductionAircraft Life Cycle CostAircraft Turbine Engine Life Cycle CostAircraft Cost DriversCargo Ship Life Cycle CostOperating and Support Costs for ShipsUrban Rail Life Cycle CostCar Life Cycle CostCity Bus Life Cycle Cost Estimation ModelProblemsReferencesCivil Engineering Structures and Energy Systems Life Cycle CostingIntroductionBuilding Life Cycle CostSteel Structure Life Cycle CostBridge and Waste Treatment Facilities Life Cycle CostsBuilding Energy Cost EstimationAppliance Life Cycle CostingEnergy System Life Cycle Cost Estimation ModelMotor, Pump, and Circuit-Breaker Life Cycle CostsProblemsReferencesMiscellaneous Cost Estimation ModelsIntroductionPlant Cost Estimation ModelReliability Acquisition Cost Estimation ModelDevelopment Cost Estimation ModelProgram Error Cost Estimation ModelCooling Tower Cost Estimation ModelStorage Tank Cost Estimation ModelPressure Vessel Cost Estimation ModelNew Aircraft System Spares Cost Estimation ModelSatellite Procurement Cost Estimation ModelSingle-Satellite System Launch Cost Estimation ModelTank Gun System Life Cycle Cost Estimation ModelWeather Radar Life Cycle Cost Estimation ModelProblemsReferencesIntroduction to Engineering Reliability and MaintainabilityIntroductionReliability and Maintainability DefinitionsBathtub Hazard Rate CurveGeneral Reliability, Mean Time to Failure, and Hazard Rate FormulasCommon Reliability NetworksReliability and Maintainability RelationshipMaintainability MeasuresSystem Availability and UnavailabilityReliability and Maintainability ToolsProblemsReferencesBibliography: Literature on Life Cycle CostingIndex

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