About This Course
5-day course outline on “Maintenance Life Cycle Costing (LCC)”, designed for
professionals involved in asset management, maintenance planning, reliability
engineering, and nance. This course focuses on using life cycle cost analysis to
make data-driven decisions that reduce total ownership cost and optimize asset
value.
5-Day Course Outline
Day 01 (INTRODUCTION TO LIFE CYCLE COSTING IN MAINTENANCE)
Objective: Understand the fundamentals of LCC and its
relevance in maintenance and asset management.
Sessions:
1.Introduction to Life Cycle Costing
- What is LCC?
- Importance of LCC in maintenance and asset management
- Key concepts: CAPEX, OPEX, Total Cost of Ownership (TCO)
2. Asset Life Cycle Phases
- Design Acquisition Operation Maintenance Disposal
- Role of maintenance in each phase
3. Maintenance Cost Drivers
- Direct vs. indirect costs
- Fixed vs. variable maintenance costs
- Hidden costs (downtime, quality, safety)
4. LCC in ISO 55000 and PAS 55
- International standards on asset management
- How LCC supports asset management strategy
DAY 02 (COMPONENTS OF LIFE CYCLE COST AND DATA COLLECTION)
Objective: Learn to identify and quantify all cost components
across an asset’s life cycle.
Sessions:
1. Cost Breakdown Structure (CBS)
- Acquisition cost
- Installation and commissioning
- Operation and maintenance
- Downtime, energy use, environmental impact
- Disposal cost
2. Data Requirements for LCC
- Historical maintenance data
- OEM recommendations vs. actual experience
- Reliability and failure data (MTBF, MTTR)
3. Sources of LCC Data
- CMMS, ERP systems, OEM manuals
- Expert judgment and industry benchmarks
4. Data Quality and Integrity
- Data validation techniques
- Gaps and assumptions in LCC models
DAY 03 (LCC MODELING AND ANALYSIS)
Objective: Build and interpret life cycle cost models
using real-world asset data.
Sessions:
1. LCC Modeling Methods
- Discounted cash ow (DCF)
- Net Present Value (NPV), Internal Rate of Return (IRR)
- Sensitivity and risk analysis
2. Creating a LCC Model
- Spreadsheet-based model walkthrough
- Inputs, formulas, and logic structure
3. Scenario and Sensitivity Analysis
- What-if analysis
- High vs. low maintenance scenarios
4. Software Tools for LCC
- Overview of LCC modules in CMMS, SAP, Maximo
- Introduction to specialized LCC software
Day 04 (USING LCC TO OPTIMIZE MAINTENANCE AND ASSET STRATEGIES)
Objective: Apply LCC to real-world decision-making for
maintenance and asset planning.
Sessions:
1. LCC for Maintenance Strategy Evaluation
- Comparing PM, PdM, and run-to-failure strategies
- LCC for spare parts and repair/replace decisions
2. Asset Renewal and Replacement Decisions
- Economic life vs. physical life
- When to refurbish, replace, or dispose
3. Integration of LCC into Capital Planning
- Budgeting for future maintenance
- Long-term cost planning for asset portfolios
4. Case Studies and Exercises
- Real-world examples of LCC application
- Group activity: Build a model for a selected asset
DAY 05 (IMPLEMENTATION AND CONTINUOUS IMPROVEMENT)
Objective: Learn how to embed LCC thinking in organizational
processes and systems.
Sessions:
1. Developing LCC Policy and Procedures
- Governance and documentation standards
- Aligning with asset management policies
2. Organizational Roles and Responsibilities
- Governance and documentation standards
- Aligning with asset management policies
3. Training and Competency Development
- LCC skills matrix
- Upskilling the workforce on cost-thinking
4. Final Project and Presentations
- Teams present a full LCC analysis for a sample asset
- Peer feedback and instructor evaluation