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Friday, March 19, 2010

What is Life Cycle Costing ?

pict 3 Tons of CMMS applied by (heavy) equipment users based on Enterprise accounting and maintenance systems. In fact they are transactional systems. They focus on specific jobs and not the asset life cycle. Without a life cycle approach to asset management, value adding functions like first principles maintenance budgeting, strategy optimization, component risk analysis, long term resource planning, economic life optimization are not possible.
Several adds value to your existing enterprise system by providing a life cycle cost methodology around your assets.
Life Cycle Costing (LCC) predicts the total costs, resources, utilization and productivity for an asset over its entire life cycle. It is an excellent tool for assessing alternatives which has made it very common in the procurement of large assets.