1. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS PROJECT ENVIRONMENTAL AND LIFE CYCLE COST DRIVERS BASED AROUND MARINE VEHICLE CONCEPT DESIGN

2. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Presentation nEnvironmental Concern or Maybe Not nWhole Life Costing nEnvironmental Drivers nLife Cycle Analysis Tools nFuture Upgrading Considerations nRisk Assessment and Safety Case Consideration nWhole Life Analysis and Costing nConclusions and Discussion

3. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Concern or Maybe Not

4. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Concern or Maybe Not

5. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Concern or Maybe Not

6. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Concern or Maybe Not

7. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Concern or Maybe Not nEffective EIA that is acted on is required nSome companies want conclusive proof before they will act nOthers will act on the balance of probability nWorld-wide trend is towards developing more environmentally friendly working practices Need for concept design tools to handle: through life costing environmental drivers nDisaster provokes action or often just talk of action

8. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Costing Product ThroughputProduct Price Annual Net Cash Flows NPV Capital Costs Initial Spares Costs Operating Costs Energy Costs M & R Costs Major Update Costs Environ- mental Costs Down- time Costs Disposal Costs Asset Sales Sales Revenue Grants and Subsidies Tax Credits Positive Cash Flows Negative Cash Flows

9. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Costing Annual Net Cash Flows Product ThroughputProduct Price Asset Sales Sales Revenue Grants and Subsidies Tax Credits Positive Cash Flows – Typical Commercial Negative Cash Flows

10. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Costing Annual Net Cash Flows Treasury Asset Sales Positive Cash Flows - Governmental Negative Cash Flows

11. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Costing Annual Net Cash Flows NPV Capital Costs Initial Spares Costs Operating Costs Energy Costs M & R Costs Major Update Costs Environ- mental Costs Down- time Costs Disposal Costs Asset AvailabilityAsset Lease (Treasury) Asset Sales Lease Revenue Grants and Subsidies Tax Credits Positive Cash Flows – Private Finance Negative Cash Flows

12. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Drivers Clean Design and Environmental Drivers Ballast Water Anti Fouling Coatings Emissions Benefit Regulation Life Cycle Cost Design Models Discharges Commercial Concern Accidental Grey Water Oils Black Water Legislation Types Treatment No Ballast Constant Exchange Data Requirements Analysis Engine Life Cycle Analysis Market Advantage Market Disadvantage UPC TLC Environmental Impact Assessment CO 2 NOx, SOx VOC CO, CnHmSoot Particles Env Stds ISO 14000 Regional NationalInternational

13. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Environmental Drivers Clean Design and Environmental Drivers Benefit Discharges Accidental Grey Water Oils Black Water Anti Fouling Coatings Legislation Types Ballast Water Treatment No Ballast Constant Exchange Design Models Data Requirements Analysis Engine Life Cycle Analysis Commercial Concern Market Advantage Market Disadvantage Life Cycle Cost UPC TLC Environmental Impact Assessment Emissions CO 2 NOx SOx VOC CO, CnHmSoot Particles Env Stds ISO 14000 Regulation Regional NationalInternational

14. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Life Cycle Analysis Tools nNumber of LCA Tools developed and utilised nInvestigation of Uncertainty Aleatory - variability of input data Epistemic - lack of knowledge in specific area nBut …. currently LCA Tools are of little use to most organisations nBasic communications on Environmental Issues needed Once achieved a LCA Tool may be of use nRequirement for Complex Data nApplication of MCDM could decrease uncertainty

15. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Future Upgrading Considerations Predictability Scenarios (Times and Probabilities) Capacity Change in Input Change in Output Technical Change Regulatory Change Bare Minimum Plant Added Space Added Services Margins on Ancillaries Margins on Major Equipment Most Generous Plant Capital can Provide Reasons for Upgrades Impact

16. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration nQuantitative Risk Assessment predictions can happen..

17. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS nTo ensure comprehensiveness Quantitative Risk Assessments should incorporate: HAZOP, SWIFT, FMECA nRisk based safety assessment now seen as a necessity in Offshore Oil and Gas industry nSafety Case: - UK legal requirement for Land-based and Offshore Process Plant Risk Assessment and Safety Case Consideration nQuantitative Risk Assessment predictions can happen.. n17 years on such methods still developing Target constantly moving

18. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration nRisk Assessment of ship designs is also important..

19. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration nRisk Assessment of ship designs is also important.. nSuch an assessment should cover: - Normal Operation hull maintenance reliability - Performance during and after an incident..

20. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration

21. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration

22. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration

23. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration

24. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Risk Assessment and Safety Case Consideration nRisk Assessment of ship designs is also important.. nSuch an assessment should cover: - Normal Operation hull maintenance reliability - Performance during and after an incident.. nModels are now being developed for the Risk Assessment of various aspects of ship design

25. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Analysis and Costing Annual Net Cash Flows DCF Calc Capital Costs Commis- sioning Costs Operating Costs Energy Costs M & R Costs Update Costs Sustain- ability Costs Down- time Costs Disposal Costs Residual Value Grants and Subsidies Fiscal and Tax Allowances Revenue OUTLINE DESIGN MODEL Performance Sizing Layout MCDM Factors Infrastructure Costs Efficiency, Cons Fuel Price Availability Revenue Loss Emissions Legislation Manufacturing Process Procurement Process Manning Consumables Spares Reliability Design Margins Midlife Update Decommissioning Clean-up REVISE DESIGN Product Price Life Cycle Process Comparisons and Design Decisions Equipment selection Performance Change Cost Escalation Market Changes Risk Factors Product Output

26. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Analysis and Costing Annual Net Cash Flows OUTLINE DESIGN MODEL Performance Sizing Layout Residual Value Grants and Subsidies Fiscal and Tax Allowances Revenue Product Price Product Output

27. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Analysis and Costing Annual Net Cash Flows OUTLINE DESIGN MODEL Performance Sizing Layout Residual Value Treasury

28. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Whole Life Analysis and Costing Annual Net Cash Flows DCF Calc Capital Costs Commis- sioning Costs Operating Costs Energy Costs M & R Costs Update Costs Sustain- ability Costs Down- time Costs Disposal Costs OUTLINE DESIGN MODEL Performance Sizing Layout MCDM Factors Infrastructure Costs Efficiency, Cons Fuel Price Availability Revenue Loss Emissions Legislation Manufacturing Process Procurement Process Manning Consumables Spares Reliability Design Margins Midlife Update Decommissioning Clean-up REVISE DESIGN Life Cycle Process Comparisons and Design Decisions Equipment selection Performance Change Cost Escalation Market Changes Risk Factors Residual Value Grants and Subsidies Fiscal and Tax Allowances Lease Revenue Asset Lease Asset Availability

29. ENGM91 ENVIRONMENTAL and LIFE CYCLE COST DRIVERS Conclusions nEnvironmental Sustainability becoming increasingly important in the Marine / Military Industries nAssessment of the Whole Life Cycle nApplication of Latest Technologies regarding Construction and Operation nRequirement to assess potentially conflicting Design Drivers to produce optimal Concept Designs nApplication of robust Analysis Techniques nMethodologies must be combined as a coherent whole to form the basis of an “Applications Toolbox”