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Maintenance Costs and Life Cycle Cost Analysis

Maintenance Costs and Life Cycle Cost Analysis

Maintenance Costs and Life Cycle Cost Analysis  motivated by the persistent pattern of failure of maintenance engineers to explain the basics of maintenance cost and associated risks and benefits to senior managers in their organizations.

The purpose of maintenance is to reduce societal, business, and personal risks. However, the cost associated with maintenance actions should not exceed the value of the risks being eliminated and the associated benefits reflected in terms of increased productivity or reduced number of accidents, etc.

In world-class organizations, in general, maintenance decisions are based on a sound cost-benefit-risk analysis. Maintenance costs analysis should include direct, consequential, and indirect costs; intangible costs; opportunity costs; and the cost of potential risks also.

You can also Read Handbook of Maintenance Management and Engineering 

Maintenance Costs and Life Cycle Cost Analysis Contents

  • The relevance of Maintenance Function in Asset ManagementMaintenance Costs and Life Cycle Cost Analysis
  • Maintenance Costing in Traditional LCC Analysis
  • The Maintenance of Budget versus Global Maintenance Cost
  • Maintenance Performance Measurement: Efficiency
  • Consequential Maintenance Cost: A Problem Area
  • Maintenance Services and New Business Models: A New Way to Consider Costs
  • Maintenance Costs Across Sectors

Benefits should include all direct and indirect revenues and intangible benefits, such as increased productivity from improved employee safety, etc. The contribution of maintenance to the success of organizations has been increasingly recognized.

The role of maintenance managers has been naturally extended into their involvement in strategic planning issues, such as production capacity or renewal of equipment planning.

This includes the selection of technological solutions and maintenance cost quantification and optimization within life cycle cost (LCC) analysis, which, in turn, contributes to the study of the consequences for the investments to be made.

Probably, for this reason, maintenance management is the most recent variable to be considered when organizations try to increase their competitive advantages.

Approaches like on-condition maintenance, predictive maintenance, reliability, virtual reality, certification attempts, and key performance indicators are only some of the many maintenance fields or, in other words, LCC fields that motivate organizations to work better and increase their market value.



Maintenance Costs and Life Cycle Cost Analysis

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