Topic

Serial Number

LIFE CYCLE COST MODELLING OF

BUILDINGS
1 WITH CONSIDERATION OF THE RISK

Life cycle costing methodology for sustainable

commerical office buildings

Life Cycle Management for Improving

3 Product Service

Activity-Based Life-Cycle Cost Analysis Design,

Operation and Maintenance in Arctic Environment

The relevance of Life Cycle Costing in Green

Public Procurement

The life cycle costing (LCC) approach: a

conceptual discussion of its usefulness for
environmental decision-making

6
 Major Equipment Life-cycle Cost Analysis

Learning by costing: Sharpening cost image

through life cycle costing?

A Literature Review of Life Cycle Costing in the

Product-Service System

9
 The benefits of applying the
Life Cycle Costing method

10

Life cycle cost and economic assessment of

biochar-based bioenergy production and biochar
land application in Northwestern Ontario, Canada

11

Life Cycle Costing in Road

12 Planning and Management

13 Activity-Based Life-Cycle Cost Analysis

USING LIFE CYCLE COSTING FOR

PRODUCT
14 MANAGEMENT
 The contractors use of life cycle
15 costing on PFI projects

From Life Cycle Costing to Economic Life Cycle

AssessmentIntroducing an Economic Impact
Pathway

16

The impact of life cycle cost

17 management on portfolio strategies

Life cycle costing: evaluating its use in UK practice

18
 Achieving Full Cycle Cost Management

19

20 Coming full circle

Machining Equipment Life Cycle Costing Model

with Dynamic Maintenance Cost

21

A decision-making framework for effective

maintenance management using life cycle costing
(LCC) in a rolling stock environment
22

23 Bridge Life Cycle Costing

Scenario based life cycle costing, an enhanced

method for evaluating the financial feasibility of
transformable building

24
 Combined Life Cycle Assessment and Life Cycle
Costing in the Eco-Care-Matrix: A case study on
the performance of a modernized manufacturing
system for glass containers

25

THE DEVELOPMENT OF AN INTEGRATED LIFE

CYCLE COSTING MODEL USING OBJECT
ORIENTED AND VR TECHNOLOGIES An
integrated life cycle costing model

26
 Variables
Author

evaluating and analysing the costs ,

E. PLEBANKIEWICZ1 model of cost evaluation
K. ZIMA
D. WIECZOREK(2016)

NA

Oduyemi, Olufolahan Ifeoluwa

product life cycle simulation, total

product life cycle

Heng Wang, Jinchang Hou

NA

Dina Kayrbekova

NA

Fabio Iraldo

NA

Pernilla Glucha;, Henrikke Baumann

 The following input variables that were portrayed as
stochastic in the model: annual usage,
engine factor, time factor, fuel price, interest rate,
salvage value, tire repair factor, repair and
maintenance cost, and tire cost.

Douglas D. Gransberg

The focus was on the costs that

can be unambiguously associated with the case product;
cost elements related to the
acquisition, product implementation, product use,
maintenance, warehousing, and disposal
were taken into account in the modeling.

Anni Lindholm,Petri Suomala

Scopus, ScienceDirect * and Web of Science, were used

in order to cover the disciplines of engineering,
environmental sciences, social sciences and economics.

Marianna Lena Kambanou*, Mattias Lindahl

 Investment Costs Operational Costs
Site (A) Housing (X1A)
Construction (B) Taxes (X1B)
Interior (C) Insurance (X1C)
Additional Costs (D) Maintenance (X1D)
Unforeseen (E) Mutations and Disposal (X1E)
Taxes (F) Energy, water etc. (X1F)
Financing (G) Management (X1G)
Interest (X1H)
Cleaning (X2C)

Joost Lansink

Total life cycle cost (LCC)

Machine and Setup Cost (MSC)
Feedstock Collection Cost (FCC)
Transportation Cost (TC)
Storage/Processing Cost (SPC)
Pyrolysis Cost (PC)
Land Application Cost (LAC)
Value of carbon sequestration
Krish HomagainEmail authorView ORCID ID profile, Chander
Shahi, Nancy Luckai and Mahadev Sharma

find the most cost-effective trade-

off, exploring application of life
cycle costing

Jonas Wennstrm, September 2014

Dina Kayrbekova(2011)

conventional costing, recurring and

non-recurring costs.

Jan Vlach
 Life cycle costs, Private finance,
Maintenance costs, Construction
industry,

L.M. Swaffield and A.M. McDonald(2007)

NA

Sabrina Neugebaue, Silvia Forin and Matthias Finkbeiner

Development of full life cycle

costing, highlight drivers

John R. Selman & Rich Scheider (2004)

NA

Assaf, S.A., Al-Hammad, A., Jannadi, O.A. and Saad, S.A

 Different cost management techniques used in the
manufacturing phase.

Robin Cooper , Regine Slagmulder

NA

Zuashkiani, Ali;Jardine, Andrew K S

NA

Marcus Bengtsson Martin Kurdve

NA

Cornelius Jacobus Fourie and Tinashe George Tendayi

NA

Mark Hurt and Steven D. Schrock

NA

Waldo Galle
 NA

Johannes Auer, Niki Bey, Johannes-Marius Schfer

Assem Al-Hajj NA
 Methodology

evaluation criteria using elements

of the fuzzy sets theory.

Analysis through the reponse recorded in the questionnaire will some given
tools.

By taking examples of
technologically immature short-life products, like mobile
phones, effect of difference of required
product service quality is investigated, and appropriate product
management strategy is discussed
for improving product service quality

A comphrehensive study of the oil and gas productions of the artic region and
its impact.

The study from the response of the questionnaire is projected into the frequency
table to find out the GPP usage of respondents regularly along with their their
categorization of usage for specific classes of products and services.

In this the points made in the discussion were given utmost importance ,
recorded and used for further analysis.
The project will compare output using actual data from current software to the
output from the new stochastic LCCA method using equipment deterioration
curves and probabilistic input variables for capital costs, fuel, and other
operating costs to demonstrate enhanced ability to optimize fleet management
decisions. It will also contain a second component where non-financial
parameters, such as sustainability, safety, etc. can be evaluated and combined
with the stochastic financial analysis to assist managers in considering cost-
technical trade-offs for new equipment.

The modeling of life cycle costs was divided into two phases: collection of the
historical data and construction of the calculation model. The modeling started
by analyzing the life cycle of the case product in cooperation with the
representatives of the organization. The issues concerned were the activities
related to the case product during its life cycle, the total activity costs, and the
amounts of activity drivers.

The study focuses on LCC, but because LCC has many names and because it
was important to place LCC within the broader costing context, the stem of the
word costing was used i.e. cost*.
 Interviews , Documentation analysis, qualitative research

SimaPro, EIOLCA software and spreadsheet modeling

It is often required to adapt input data for different study

objects and
thus may require extensive data collection.The data required to
conduct
life cycle cost analyses for specific projects limit the possibilities
to make many studies and
to focus on case studies may be necessary. To draw statistical
general conclusions a larger
sample size is often required on which statistical analyses can
be performed

identifying
the need, motivation and the cost assessment mechanisms of
comparable
technical solutions in order to select the most cost-effective
alternative. The
work focused on conceptual model development for
improvements of
maintenance cost assessment methodology

Analohous, Bottom up, Top down

literature review, a questionnaire
survey, four semi-structured interviews and a case study of a
facilities management

Interviews , Documentation analysis, qualitative research

Own assumptions

The study from the response of the questionnaire is projected into the frequency
table
 A comprehensive thorough study of the different techniques used in design
phase as well as throughout the entire product life cycle.

Own assumptions, graphs and most of the study was subjective

In this the points made in the discussion were given utmost importance ,
recorded and used for further analysis.

Own assumptions

A comprehensive thorough study of the different techniques used in design

phase as well as throughout the entire product life cycle.

Analysis through the reponse recorded in the questionnaire will some given
tools.
 Interviews , Documentation analysis, qualitative research

Own assumptions, graphs and most of the study was subjective

 Primary Contributions

evaluating a building throughout its whole life cycle in relation

to its sustainable development. Il describes basie tools and techniques of evaluating and
analysing the costs
in the whole life cycle of the building, such as Life Cycle Assessment, Life Cycle
Management, Life Cycle Cost
and Social Life Cycle Assessment.

The conclusion stated there was a need to integrate and incorporate key performance indicators and economic
performance measures into LCC. It also stated that respondants were against the current LCC techniques for
calculating the whole life costs of building. Also it was discovered that historical costs data may not be accurate
enough for use in LCC.

For achieving better environmental performance of products or product systems, it is

essential to manage total product life cycle. It shows method for supporting product
life cycle management by comprehensive product life cycle simulation, which is a basis
for
designing and evaluating total product life cycle.

More simplified decision support tools which can enable a decision-maker to indicate cause-and-effect relations
between system failures, maintenance strategies, operational costs and associated risks are required. New
methodologies for the costs assessment of systems/equipment under the influence of the different physical
factors of the harsh, remote and sensitive environment of the Arctic need to be further developed. The collected
data from the Arctic can be helpful in the development of the cost model and/or engineering and economic
decision-making support tools .

The utilization of LCC in acquisition can help recognize the most effective option in an existence cycle point of
view, conquering the need to depend just on the price tag, which now and again can delude. Notwithstanding
the reasonable favorable position for associations, the utilization of LCC today is still exceptionally constrained,
especially for open organizations. The absence of HR inside general society experts today speaks to a limitation
to the full selection of LCC. The absence of HR is an important requirement especially because of the financial
emergency of the most recent years. To defeat this issue, open specialists planning to embrace LCC out in the
open tenders, can for instance prepare a particular team distinguished among the interior staff to apply LCC.

The tools required to integrate environmental and micro economic dimensions needs to be upgraded. Also
making environment related decision is complex and several of these are insufficient for the problems
environmental decision making is affiliated with. Thus for a better functioning both needs to be improved in the
near future.
 when deciding to replace a piece of equipment, engine efficiency should be a high priority due to the costs
associated with the time factor, engine factor, and its subsequent annual usage.

Only a few empirical studies on life cycle costing have been reported which focus on the defence sector. The
paper contributes to our understanding of how LCC can be used in a continuous manner and depicts how LCC
can produce a sharpened cost image of a particular product.

This research highlighted the importance and widespread use of LCC costing in PSS as a tool to provide
decision makers, designers and stakeholders with relevant financial information.
Researchers, either explicitly or inexplicitly, classify their approaches to LCC based on PSS type, e.g. product-
or use- or result- oriented and there are similarities between these approaches. Further research, is needed to
see if there are
similarities between different types that is to say overarching common approaches.
In broad terms, there are advantages with respect to the economical benefits, qualitative benefits, sustainability
benefits and process related benefits. In addition, there are also some disadvantages. Because a shift occurs
towards a more user-oriented market, finally, some preconditions are given regarding for
successfully applying Life Cycle Costing (LCC). The advantages which are described below can only be
achieved when the preconditions will be fulfilled, so this is the baseline situation

Biochar-based bioenergy system is economically viable when life cycle costs and environmental assumptions
are accounted for. This study provides a medium scale slow-pyrolysis plant scenario and we recommend similar
experiments with large-scale plants in order to implement the technology at industrial scale

In recent times increased operation and maintenance

costs have been associated with the road type. Especially concerns regarding increased
road
user cost during road works have been expressed. Identify how different methodologies
that account for life cycle cost can be used in
road planning, design and management in order to support minimised costs.
Make an inventory of road planning and design process for an overview of
implications for life cycle cost implementation

develop and discuss a conceptual methodology to assess, evaluate and predict

maintenance cost more credibly and accurately for an advanced, complex and integrated
production facility to be used in the harsh, remote and sensitive environment of the
Arctic. Study the influence of good quality costs assessment of the selected technical
solution alternatives on the total life-cycle cost of an offshore oil and gas production
facility

solve a particular problem of design selection in the area of mechanical engineering.

various cost
types need to be taken into account, ranging over the whole life of the product
from concept to end-of-life, and related to an appropriate unit of utility
investigate attitudes and opinions of quantity surveyors
working for design and construction contractors regarding the importance and use of life
cycle costing
within private finance initiative (PFI) projects

Economic activities play a key role in human societies by providing goods and services through production,
distribution, and exchange. At the same time, economic activities through common focus on short-term
profitability may cause global crisis at all levels.

It talks regarding the true cost of operating and sustaining physical infrastructure over its
life cycle. Its suggest that understanding life cycle costs is a critical element of effective,
long term portfolio and asset management. this paper explores the development of full
life-cycle costing, highlighting key life-cycle cost drivers

Evidence showed that LCC is more likely to be used on publicly procured projects such as health care and
education and that LCC is rarely used across all sectors of the UK construction industry. It was found that the
prevailing climate of short termism in terms of the budget horizons of clients was the major barrier to LCC not
being in more general use amongst other factors to inhibit it's use in early stage project evaluation.
A assumption that companies can integrate a variety of techniques to substantially reduce costs, not just in the
design phase but throughout the product life cycle. Instead, they found that Olympus Optical achieves
significant cost reductions in manufacturing, contradicting the widely held assumption that a large percentage of
costs are locked in during design. Indeed, the research demonstrates that costs can be aggressively managed
throughout the product life cycle. Furthermore, they found that Olympus Optical applies various cost-
management techniques in an integrated manner, with the outputs of some techniques acting as inputs to
others, thereby increasing the programs overall effectiveness. The observations suggest that companies
competing aggressively on cost might consider the adoption of some form of an integrated cost-management
program that spans the entire product life cycle.ort life cycles and aggressive cost management focused on
product design, a company can still achieve significant savings through efforts targeted at making the production
process more efficient. Second, companies should consider using multiple cost management techniques
across the entire product life cycle. Third, the stand-alone use of those techniques might limit their
effectiveness.

Using the concept of time value of money ans to solve the life cycle costing problems. It
is useful to draw a cash flow diagram for all alternatives, as this provides a better
understanding of what is happening during the life cycle for equipment. Items that do not
vary in cost from one option to another do not affect the decisions.

This paper presents how a Life cycle cost or Total cost of ownership analysis has been performed on machining
equipment in a Swedish company. Life cycle cost models used in case studies are compared to an empirical
model, used at the company, where dynamic energy, fluid, and maintenance cost are included. Linear and
variable factors in the models are analyzed and discussed regarding data availability and estimation, especially
with emphasis on maintenance. The life cycle cost aspect of the equipment give guidelines to consider
operation, maintenance, tools, energy, and fluid cost in addition to acquisition cost, when designing/specifying
the equipment.

In this paper, a life cycle costing (LCC) framework for effective maintenance management is investigated and
developed for use in a railway rolling stock environment. The framework consists of combining typical mission-
critical components together with their failure and maintenance history. All costs related to the operation and
maintenance of these components throughout their life cycle are also determined.

The chapter focuses on determining cost-effective maintenance strategies for the use of Bridge Life Cycle Cost Analysis
(BLCCA). The criterion for selection and scope of the project is examined and the concepts of discount rate, cash flows, and
time value of money are mentioned. Also discussed are the types of costs for inclusion in BLCCA, deterioration rates for
bridge elements, and selection of a maintenance strategy using BLCCA in determining cost-effective maintenance policies.

Transformable building is an innovative design and construction strategy. It aims for an adaptable building stock
and fosters the future reuse of construction materials. As a result, long-term environmental and financial savings
could be realised. Nevertheless, a feared increase of the initial cost impedes this strategys widespread
implementation. To frame this impediment and gain better insight into the financial consequences of
transformable building, the present research proposes an enhanced life cycle costing method. Taking into
account the circular service life of transformable buildings this method empowers advisors and designers to
evaluate the feasibility of transformable building and implement it in a well-conceived way.
The objective was also to identify the most relevant drivers for the environmental and the cost profile of the system solution in
application context by the means of Life Cycle Assessment, as well as Life Cycle Costing (LCC).

There is an increasing realisation of the importance of operation and maintenance as opposed to capital costs
throughout the life of an asset. In addition, new styles of contracts such as PFI (Private Finance Initiative) are
becoming more popular. This will require that the building product is addressed within its holistic picture
including the design, construction and maintenance. It is therefore vital to embed the life cycle costing element
of a facility within its design and construction.
 Primary Results

this gives a overview of issues involved in the life cycle of buildings. Particular
attention was paid to the risks involved in the life cycle costs, presented by
means of a method
allowing including these risks in the calculation of life cycle costs.

Respondents were slightly aware of key performance indicators, economic performance measures
and risk assessment techniques. However they strongly agreed that key performance indicators and
economic performance measures need to be incorporated into LCC and that it is important to
consider the initial, operating and maintenance costs of building when conducting LCC analysis.
They refuted against the current LCC techniques.

product usage model is proposed, where customer

satisfaction is measured by offered product functionality

The contemplated cost evaluation strategy can help with meeting the alluring execution of the
framework tending to upkeep contemplations. Moreover, this cost evaluation strategy can bolster
basic leadership in key support idea choice as for cost The non-routine cost framework examined in
the work is proposed as a superior option costs appraisal approach for the cost investigation of
practically identical option specialized arrangements in the outline of creation offices to be utilized as
a part of the unforgiving, remote and touchy condition of the Arctic atmosphere. Action based life-
cycle costing can help not just in the costs evaluation procedure of the practically identical
specialized arrangement, yet in better arranging of upkeep exercises taking after chose upkeep and
bolster methodologies.

The major findings includes the fact that Green Public Procurement is normally considered as a
driver for LCC, is very diffused among the same administrations. Also Life Cycle Costing approach is
only implemented by only a small part of public administrations.

Even though LCC-oriented tools are grounded in neoclassical economic theory, developed for pure
financial analysis .It was found that from a user perspective it seems to be a good idea to link
environmental issues with financial consequences when implementing environmental issues in a
corporate decision-making context. From an environmental perspective the theory is incapable of
incorporating uncertainty, irreversible decisions, items with no future costs.
The results indicate that the time and engine factors are the most sensitivity variables to the
stochastic life-cycle cost model for the construction equipment. The two factors are utilized in the
same calculation and have a major impact on the life-cycle costs.

Activitybased life cycle cost modeling can provide relevant information for varying product
management needs at different stages in the life of a product. Quantification of uncertainty is one of
the elements in the modeling that can improve the feasibility of LCC both for cost estimation and
tracking purposes.

It is done with a funnel approach, starting with the presentation of general findings about costing in
the context of PSS. The second part discusses the LCC approach and the third LCC from the
perspectives of the two main actors: the provider and the customer. In the fourth, issues concerning
data quality and availability are presented.
By applying the Life Cycle Costing methodology better decisions will be made by the main-actors on
the Dutch commercial real estate market, when taking decisions about the design of the building and
the associated investment costs. Life Cycle Costing results in more conscious choices with respect
to
the design of buildings. These improved decisions lead to better buildings with economical,
qualitative and sustainability benefits

It was found that the economic viability of biochar-based bioenergy production system within the life
cycle analysis system boundary based on study assumptions is directly dependent on costs of
pyrolysis, feedstock processing (drying, grinding and pelletization) and collection on site and the
value of total carbon offset provided by the system. Sensitivity analysis of transportation distance
and different values of C offset showed that the system is profitable in case of high biomass
availability within 200 km and when the cost of carbon sequestration exceeds CAD $60 per tonne of
equivalent carbon (CO2e)

Results from cost benefit analyses based on established road appraisal

techniques
indicated that operation and maintenance related costs had limited impact on
profitability. Life cycle costing can also be applied in many different ways. The
scope of life cycle costing varies considerably. Life cycle costing is a
methodology that gives project managers a decision support tool to select
appropriate alternatives and funding level.

main
physical factors of the Arctic climate and its influence on maintenance
performance and cost are identified and discussed

as compared to conventional budgeting, the LCC method tends

to involve much more sophisticated tools and procedures, and requires
substantial skills and resources in order to obtain the necessary data.
research identified that contractors quantity surveyors generally did consider
life
cycle costs when procuring new products/elements for PFI projects, but in
certain circumstances, such
as during exceptionally busy times or when working within tight construction
budgets, life cycle costs
were not considered and procurement decisions for some products/elements
were made on the basis of
lowest capital cost

They propose economic life cycle assessment (EcLCA) for representing the economic pillar within
the LCSA framework, following the requirements of ISO 14044, and introducing an economic impact
pathway including midpoint and endpoint categories towards defined areas of protection (AoPs).
They identify important target ratios by means of economic AoPs, which drive economic activities on
the macro- and microeconomic level. Furthermore, they provide suggestions for midpoint and
endpoint indicators representing the defined categories. With the presented EcLCA framework, a
first step towards the inclusion of economic impacts within LCSA has been made

this paper highlights the amount of time and resources required to establish an
effective asset management programme. The paper also demonstrates what can
be accomplished through the implementation of an integrated asset
management system: accurate inventories, baseline condition assessments,
long-term budgetary requirements and a life-cycle understanding about what is
truly required to operate and sustain an asset inventory.

The review demonstrates that life cycle costing is still not generally utilized by fabricated condition
experts in the UK. The best inhibitor on the take up of the apparatus is the need of customers to
spending plan on here and now skylines. Different components, for example, a need consciousness
of the instrument by experts and customers, lack of quality of information into the long haul and the
superseding requirement for industrially determined undertakings to accomplish greatest degree of
profitability keep on inhibitting the across the board reception of life cycle costing as an early stage
extend assessment device. These discoveries have suggestions for the capacity of the UK
development industry to convey on its dedication to upgrade the supportability of the assembled
condition.
The major findings included : First, even in an environment of products with short life cycles and
aggressive cost management focused on product design, a company can still achieve significant
savings through efforts targeted at making the production process more efficient. Second,
companies should consider using multiple cost management techniques across the entire product
life cycle. Third, the stand-alone use of those techniques might limit their effectiveness.

it is important to remember that life cycle costing analysis. This type of analysis
is about making best decisions in light of availbale informatiton. Life costing is
not aimed at makin accurate information. Inseatd the focus is on collecting
enough information at the riht level of detail to underpin a decisions in cost
effective acceptable.

This paper elaborates on theory and difficulties in practical use of LCC for machine tools. It is a case
study of descriptive and empirical character and aims to show how LCC, or TCO, if you will, has
been used in practice from the user company perspective, and discuss collection and application of
data.The paper presents some theory regarding LCC as well as Life cycle profit (LCP); and
suggestions on how to use LCC for machine tools. In the case, LCC is utilized in order to make a
decision on whether to acquire a new machine, recondition existing machines, or run the existing
machines with an increased cost and risk.

A typical railway rolling-stock maintenance organisation in South Africa was used to highlight the
practical implications of such a framework and how the company could make informed and
appropriate decisions. The conclusion of this study is that such a framework is useful, and that it can
be used as a basis for estimating LCC across a spectrum of critical assets found in the rolling stock
environment.

Bridge maintenance programming consists of several applications from BLCCA including determining of
economic efficiency of alternate maintenance strategies and deciding whether to repair or replace a bridge in the
latter half of its expected service life. Information on the life cycle cost analysis of bridges and bridge elements
from the FHWA Life Cycle Cost Analysis Primer is discussed. The role of inflation in cost determination and
costs and condition as a function of maintenance effort are also mentioned.

To take into account the circular service life of transformable buildings as well as their unpredictable
and dynamic nature the proposed method departs from life cycle scenarios. Such scenarios or
imaginable futures reflect our varying requirements. To facilitate their integration in the life cycle cost
analyses the present research developed five new features. These features include specific
calculation methods as well as detailed modelling protocols. To illustrate their added-value an in-
depth case study is conducted. The studys outcomes show how scenario based life cycle costing
allows to compare initial and long-term costs, evaluate model uncertainties, identify boundary
conditions, understand design improvements and study investment risks.
The results were then to be displayed in an Eco-Care-Matrix (ECM) in order to quantitatively visualize the
improvements when comparing the updated manufacturing system to the previous one and they were to be
discussed in terms of (i) ecodesign levers, (ii) efficiency of the LCA process and (iii) their relevance for the speed
and cost of the decision-making process. The LCA results of the production stage of the optimized components
showed that the largest contributors to the potential environmental impact of the manufacturing system are the
motors due to their material composition, number and mass.

The current integrated database within OSCON supports the functions of design, estimating and planning. The
proposed system will allow the user within a VR environment to navigate inside the building retrieving
information about building components that need replacement or repair. A colouring mechanism will be
developed to show various elements in different colours according to cost criteria. This would allow the user to
easily inspect the building and get rough ideas of repair and maintenance programmes, running costs and cash
flows. The system will allow data to be updated continuously so that it will enable the comparison with initial
plans and estimates and provides a fresh view of future action and feedback.