IENG 217 Cost Estimating for Engineers Life Cycle

Life Cycle Costing u LCC is concerned with Pay Now or Pay Later u Examples u Energy efficient building vs traditional heating/cooling u Brick dormitory vs throw away u Car buying u Obsolete electronic components for airplane u Last time buy vs redesign

Life Cycle Costing u Design, development, and engineering u Initial capital investment and financing u Operation, maintenance, and functional use u Replacement u Alteration, refurbishing, and improvement u Salvage and retirement

Life Cycle Costing u Two major concerns u Annual Deterioration u Obsolescence u What is the life cycle? u Truck tires might be 30,000 miles u Crane engine might be 50,000 hours of use u Public works might be years u Product might be 5-10, 1-3, year

Estimating Costs

LCC Estimates (Assumptions)

LCC Estimates (Analysis)

LCC Estimates