COURSE OVERVIEW:

In the competitive landscape of modern industry, the initial purchase price of an asset represents only the "tip of the iceberg" regarding its total financial impact. This course provides a robust framework for Life Cycle Costing (LCC), a methodology used to estimate the total cost of ownership from initial design and acquisition through operation, maintenance, and eventual disposal. It focuses on identifying the hidden drivers of expense that occur during the decades-long lifespan of industrial equipment.

The scope of this training involves the integration of engineering reliability data with financial modeling to determine the most cost-effective asset strategies. Participants will learn how to build comprehensive LCC models that account for energy consumption, maintenance labor, spare parts, and the cost of unplanned downtime. The curriculum emphasizes the strategic use of LCC during the procurement phase to select equipment that offers the best long-term value rather than simply the lowest bidding price.

Coverage includes the application of Net Present Value (NPV) and Discounted Cash Flow (DCF) to compare competing asset designs and replacement intervals. Attendees will explore techniques for asset cost optimization, including the evaluation of "Design for Reliability" (DfR) and "Design for Maintainability" (DfM) features. By the end of this course, participants will be able to provide executive leadership with data-driven recommendations that minimize the total cost of ownership and maximize the return on invested capital.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

• Define the core principles of Life Cycle Costing and its role in ISO 55000.
• Identify all cost elements of an asset from "Cradle to Grave."
• Calculate the Total Cost of Ownership (TCO) for critical plant equipment.
• Utilize Net Present Value (NPV) to compare assets with different lifespans.
• Apply Discounted Cash Flow (DCF) analysis to maintenance strategy selection.
• Quantify the impact of energy efficiency on long-term asset profitability.
• Determine the "Economic Life" of an asset and the optimal replacement point.
• Use LCC data to justify higher initial investments in reliable technology.
• Evaluate the cost-benefit of "Design for Maintainability" features.
• Analyze the financial implications of different disposal and salvage strategies.
• Integrate LCC findings into the corporate capital budgeting process.
• Communicate complex financial-technical trade-offs to senior management.

TARGET AUDIENCE:

This course is designed for Asset Managers, Maintenance Managers, Reliability Engineers, Procurement Specialists, Finance Business Partners, and Project Engineers.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximize the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.