Page 314 - Improving Machinery Reliability

284 Improving Machinery Reliability

3. LCC = manufacturer’s cost + maintenance costs and downtime costs to end
users
SAE (1993) also has a LCC model directed toward a manufacturing environment:

4. LCC = acquisition costs + operating costs + scheduled maintenance + unsched-
uled maintenance + conversiontdecommission

The SAE model breaks down the costs as shown in Figure 5-9.
The LCC models above, and much more complicated models described in the
British Standards BS-5760 (BSI 1983), include costs to suppliers, end users, and
“innocent bystanders’’-in short, the costs are viewed from a total systems perspec-
tive. LCC vary with events, time, and conditions. Many cost variables are not deter-
ministic but are truly probabilistic. This usually requires starting with arithmetic val-
ues for cost and then growing the cost numbers into the more accurate, but more
complicated, probabilistic values.

Acquisition Purchase Price
Cost AdminisustivelEngincering
Installation I
I Training
Convasion

/ ,4 Tosi Direct Labor 1
rabng
Utilities

Material & Labor Cosu
Cost of PM Schedules
Cost of Repair
Fixed Labor Cost For Brkdn
Life of Equipment

Material & Labor Cosu
\ YdH Unscheduled Brkdn. Cosu
Maint.
Cost
\ Average Cost of Repair
Cost of Repair PWew
Life of Equipment
Decommission Cosu
Salvage Costs
Cleaning of Site
WastdBy-product Disposal

Figure 5-9. Life cycle cost breakdown per SAE model.