1. IENG 217 Cost Estimating for Engineers Life Cycle

2. 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

3. 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

4. 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 30-60 years u Product might be 5-10, 1-3, 0.5-1 year

5. Estimating Costs

7. LCC Estimates (Assumptions)

8. LCC Estimates (Analysis)

9. LCC Estimates