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IENG 217 Cost Estimating for Engineers. Life Cycle. Life Cycle Costing. LCC is concerned with Pay Now or Pay Later Examples Energy efficient building vs traditional heating/cooling Brick dormitory vs throw away Car buying Obsolete electronic components for airplane
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IENG 217Cost Estimating for Engineers Life Cycle
Life Cycle Costing • LCC is concerned with • Pay Now or Pay Later • Examples • Energy efficient building vs traditional heating/cooling • Brick dormitory vs throw away • Car buying • Obsolete electronic components for airplane • Last time buy vs redesign
Life Cycle Costing • Design, development, and engineering • Initial capital investment and financing • Operation, maintenance, and functional use • Replacement • Alteration, refurbishing, and improvement • Salvage and retirement
Life Cycle Costing • Two major concerns • Annual Deterioration • Obsolescence • What is the life cycle? • Truck tires might be 30,000 miles • Crane engine might be 50,000 hours of use • Public works might be 30-60 years • Product might be 5-10, 1-3, 0.5-1 year