WLCC

Question	Answer
What is WLCC	Total costs estimated over systems usefal life span (design to disposal)
Why use WLCC?	Helps designers jusitfy components and system selection based on total costs rather than initial purchase price Also helps with planning, budgeting and reporting
What pressures may an engineer face during WLCC analysis?	A shift from public to private financial responsibilites A higher demand for value for money Emerging environmental penalties
Why us WLCC analysis?	Work out if can afford to build the structure or product To work out if you can afford to run it To control the design development within the capital cost and running cost budget To provide a set of instructions and a budget for the facilities manager
What is WLC made up of?	Initial costs Sustaining costs
What is sustaining costs made up of?	Operating Costs Maintenance Costs Disposal Costs
How much larger are sustaining costs than initial costs?	between 2-20 times larger
What is the WLCC process	Define the problem requiring WLCC Identify possible alternative/study period Prepare cost breakdown structure Gather cost estimate Calcualte WLCC Selection of the least WLCC alternative
What defines the study period?	Expected systems life Investors time horizon
Equation for present value?	PV=FV/(1+r)^n where r is discount rate n is number of years
Equation for WLCC?	Sum of PV costs - Sum of PV revenue

Resource summary

	Created by Luke Hansford almost 7 years ago