Life cycle costing for engineers

Title:

Personal Author:

Dhillon, Balbir S.

Publication Information:

Boca Raton, FL : CRC, 2010

ISBN:

9781439816882

General Note:

"A CRC title."

Subject Term:

Life cycle costing

Engineering economy

Product life cycle

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Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ JB	30000010209416	TA177.7 D35 2010	Open Access Book	Book	Searching... Unknown
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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.

Author Notes

B.S. Dhillon received his Ph.D. in industrial engineering from the University of Windsor. He received his M.S. in mechanical engineering and B.S. in electrical and electronic engineering from the University of Wales.

Dr. Dhillon is a professor of engineering management in mechanical engineering at the University of Ottawa.

050

Preface	p. xiii
The Author	p. xvii
1 Introduction	p. 1
1.1 Background	p. 1
1.2 Terms and Definitions	p. 2
1.3 Useful Information on Life Cycle Costing	p. 3
1.3.1 Journals	p. 3
1.3.2 Conference Proceedings	p. 4
1.3.3 Technical Reports and Manuals	p. 4
1.3.4 Books	p. 5
1.3.5 Data Information Sources	p. 6
1.3.6 Organizations	p. 6
1.4 Scope of the Book	p. 7
Problems	p. 8
References	p. 9
2 Life Cycle Costing Economics	p. 11
2.1 Introduction	p. 11
2.2 Simple Interest	p. 11
2.3 Compound Interest	p. 12
2.4 Effective Annual Interest Rate	p. 14
2.5 Time-Dependent Formulas for Application in Life Cycle Cost Analysis	p. 15
2.5.1 Single Payment Future Worth Formula	p. 15
2.5.2 Single Payment Present Value Formula	p. 15
2.5.3 Uniform Periodic Payment Future Amount Formula	p. 16
2.5.4 Uniform Periodic Payment Present Value Formula	p. 18
2.5.5 Formulas to Calculate Value of Annuity Payments When Annuity's Present and Future Values Are Given	p. 19
2.6 Depreciation Methods	p. 20
2.6.1 Sum-of-Years-Digtts (SYD) Method	p. 21
2.6.2 Straight-Line Method	p. 22
2.6.3 Declining-Balance Method	p. 22
Problems	p. 24
References	p. 25
3 Life Cycle Costing Fundamentals	p. 27
3.1 Introduction	p. 27
3.2 Need and Information Required for Life Cycle Costing	p. 27
3.3 Life Cycle Costing Application Areas	p. 28
3.4 Life Cycle Costing Activities and Associated Steps	p. 29
3.5 Approach for Incorporating Life Cycle Costing into the Planning Process for Proposals and Contracts	p. 30
3.6 Areas for Evaluating a Life Cycle Costing Program	p. 31
3.7 Life Cycle Costing Data Sources	p. 32
3.8 Life Cycle Costing Advantages and Disadvantages and Related Important Points	p. 33
3.9 Life Cycle Costing Concept Application in Selecting Equipment from Competing Manufacturers	p. 34
Problems	p. 40
References	p. 41
4 Life Cycle Cost Models and Cost Estimation Methods	p. 43
4.1 Introduction	p. 43
4.2 Types of Life Cycle Cost Models and Their Inputs	p. 43
4.3 General Life Cycle Cost Models	p. 44
4.3.1 General Life Cycle Cost Model I	p. 44
4.3.2 General Life Cycle Cost Model II	p. 45
4.3.3 General Life Cycle Cost Model III	p. 46
4.3.4 General Life Cycle Cost Model IV	p. 47
4.3.5 General Life Cycle Cost Model V	p. 47
4.3.6 General Life Cycle Cost Model VI	p. 49
4.4 Specific Life Cycle Cost Models	p. 50
4.4.1 Specific Life Cycle Cost Model I	p. 50
4.4.2 Specific Life Cycle Cost Model II	p. 51
4.4.3 Specific Life Cycle Cost Model III	p. 52
4.4.4 Specific Life Cycle Cost Model IV	p. 53
4.4.5 Specific Life Cycle Cost Model V	p. 55
4.5 Cost Estimation Methods	p. 55
4.5.1 Cost Estimation Method I	p. 55
4.5.2 Cost Estimation Method II	p. 56
4.5.3 Cost Estimation Method III	p. 57
4.5.4 Cost Estimation Method IV	p. 57
4.5.5 Cost Estimation Method V	p. 58
Problems	p. 59
References	p. 59
5 Reliability, Quality, Safety, and Manufacturing Costing	p. 63
5.1 Introduction	p. 63
5.2 Reliability Cost Classifications	p. 63
5.3 Models for Estimating Costs of Reliability-Related Tasks	p. 64
5.3.1 Model I	p. 64
5.3.2 Model II	p. 65
5.3.3 Model III	p. 65
5.3.4 Model IV	p. 65
5.3.5 Model V	p. 66
5.4 Quality Cost Classifications and Their Distribution in the Industrial Sector	p. 66
5.4.1 Prevention Cost	p. 67
5.4.2 Appraisal Cost	p. 67
5.4.3 Internal Failure Cost	p. 67
5.4.4 External Failure Cost	p. 67
5.5 Quality Cost Indexes and Quality Cost Reduction Approach	p. 68
5.6 Safety Cost and Its Related Facts and Figures	p. 69
5.7 Safety Cost Estimation Models	p. 70
5.7.1 Model I	p. 70
5.7.2 Model II	p. 70
5.7.3 Model III	p. 71
5.7.4 Model IV	p. 71
5.8 Manufacturing Costs	p. 72
5.9 Manufacturing Cost Estimation Models	p. 73
5.9.1 Model I	p. 73
5.9.2 Model II	p. 73
5.9.3 Model III	p. 74
5.9.4 Model IV	p. 74
Problems	p. 75
References	p. 75
6 Maintenance, Maintainability, Usability, and Warranty Costing	p. 77
6.1 Introduction	p. 77
6.2 Reasons for Maintenance Costing, Factors Influencing Maintenance Cost, and Types of Maintenance Costs	p. 78
6.3 Equipment Maintenance Cost	p. 79
6.3.1 Maintenance Equipment Cost	p. 80
6.4 Preventive and Corrective Maintenance Labor Cost Estimation	p. 80
6.5 Repair Manpower, Maintenance Material, and Spare and Repair Parts Costs	p. 81
6.6 Maintenance Cost Estimation Models	p. 83
6.6.1 Model I	p. 83
6.6.2 Model II	p. 84
6.6.3 Model III	p. 84
6.6.4 Model IV	p. 84
6.7 Maintenance Cost Data Collection	p. 85
6.8 Maintainability Investment Cost Elements	p. 85
6.9 Manufacturer Warranty and Reliability Improvement Warranty Costs	p. 86
6.10 Usability Costing and Related Facts and Figures	p. 87
6.11 Principal Costs of Ignoring Product Usability and Product Usability Cost Estimation	p. 87
Problems	p. 89
References	p. 89
7 Computer System Life Cycle Costing	p. 91
7.1 Introduction	p. 91
7.2 Computer System Life Cycle Cost Models	p. 91
7.3 Computer System Maintenance Cost	p. 93
7.4 Software Costing and Related Difficulties	p. 95
7.5 Software Life Cycle Cost Influencing Factors and Model	p. 96
7.6 Software Cost Estimation Methods and Models	p. 97
7.6.1 Software Cost Estimation Methods	p. 97
7.6.1.1 Tabular Models	p. 98
7.6.1.2 Composite Models	p. 98
7.6.1.3 Analytic Models	p. 99
7.6.1.4 Linear Models	p. 99
7.6.1.5 Multiplicative Models	p. 99
7.6.2 Software Cost Estimation Models	p. 100
Problems	p. 103
References	p. 103
8 Transportation System Life Cycle Costing	p. 105
8.1 Introduction	p. 105
8.2 Aircraft Life Cycle Cost	p. 105
8.3 Aircraft Turbine Engine Life Cycle Cost	p. 108
8.4 Aircraft Cost Drivers	p. 108
8.4.1 Helicopter Maintenance Cost Drivers	p. 109
8.4.2 Aircraft Airframe Maintenance Cost Drivers	p. 109
8.4.3 Combat Aircraft Hydraulic and Fuel Systems Cost Drivers	p. 110
8.5 Cargo Ship Life Cycle Cost	p. 110
8.6 Operating and Support Costs for Ships	p. 111
8.6.1 Formula I	p. 111
8.6.2 Formula II	p. 111
8.6.3 Formula III	p. 111
8.6.4 Formula IV	p. 112
8.7 Urban Rail Life Cycle Cost	p. 112
8.8 Car Life Cycle Cost	p. 113
8.9 City Bus Life Cycle Cost Estimation Model	p. 114
Problems	p. 115
References	p. 115
9 Civil Engineering Structures and Energy Systems Life Cycle Costing	p. 117
9.1 Introduction	p. 117
9.2 Building Life Cycle Cost	p. 117
9.3 Steel Structure Life Cycle Cost	p. 118
9.4 Bridge and Waste Treatment Facilities Life Cycle Costs	p. 119
9.5 Building Energy Cost Estimation	p. 120
9.5.1 Formula I	p. 120
9.5.2 Formula II	p. 121
9.5.3 Formula III	p. 121
9.5.4 Formula IV	p. 122
9.5.5 Formula V	p. 122
9.6 Appliance Life Cycle Costing	p. 122
9.7 Energy System Life Cycle Cost Estimation Model	p. 123
9.8 Motor, Pump, and Circuit-Breaker Life Cycle Costs	p. 124
9.8.1 Motor Life Cycle Cost Estimation Model	p. 124
9.8.2 Pump Life Cycle Cost Estimation Model	p. 125
9.8.3 Circuit-Breaker Life Cycle Cost Estimation Model	p. 126
Problems	p. 126
References	p. 127
10 Miscellaneous Cost Estimation Models	p. 129
10.1 Introduction	p. 129
10.2 Plant Cost Estimation Model	p. 129
10.3 Reliability Acquisition Cost Estimation Model	p. 130
10.4 Development Cost Estimation Model	p. 131
10.5 Program Error Cost Estimation Model	p. 132
10.6 Cooling Tower Cost Estimation Model	p. 133
10.7 Storage Tank Cost Estimation Model	p. 134
10.8 Pressure Vessel Cost Estimation Model	p. 134
10.9 New Aircraft System Spares Cost Estimation Model	p. 136
10.10 Satellite Procurement Cost Estimation Model	p. 137
10.11 Single-Satellite System Launch Cost Estimation Model	p. 137
10.12 Tank Gun System Life Cycle Cost Estimation Model	p. 138
10.13 Weather Radar Life Cycle Cost Estimation Model	p. 139
Problems	p. 141
References	p. 142
11 Introduction to Engineering Reliability and Maintainability	p. 145
11.1 Introduction	p. 145
11.2 Reliability and Maintainability Definitions	p. 146
11.3 Bathtub Hazard Rate Curve	p. 146
11.4 General Reliability, Mean Time to Failure, and Hazard Rate Formulas	p. 147
11.4.1 General Formula for Reliability	p. 147
11.4.2 General Formula for Mean Time to Failure	p. 148
11.4.3 General Formula for Hazard Rate	p. 149
11.5 Common Reliability Networks	p. 150
11.5.1 Series Network	p. 150
11.5.2 Parallel Network	p. 152
11.5.3 K-out-of-m Network	p. 154
11.5.4 Standby System	p. 155
11.6 Reliability and Maintainability Relationship	p. 156
11.6.1 Reliability	p. 156
11.6.2 Maintainability	p. 157
11.7 Maintainability Measures	p. 157
11.7.1 Mean Time to Repair (MTTR)	p. 157
11.7.2 Maintainability Function	p. 158
11.7.3 Mean Preventive Maintenance Time	p. 159
11.7.4 Maximum Corrective Maintenance Time	p. 159
11.7.4.1 Exponential	p. 159
11.7.4.2 Normal	p. 160
11.7.4.3 Lognormal	p. 160
11.8 System Availability and Unavailability	p. 160
11.9 Reliability and Maintainability Tools	p. 162
11.9.1 Failure Modes and Effect Analysis (FMEA)	p. 162
11.9.2 Fault Tree Analysis	p. 162
11.9.3 Cause and Effect Diagram	p. 163
Problems	p. 164
References	p. 165
Bibliography: Literature on Life Cycle Costing	p. 167
Index	p. 197

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Table of Contents