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Dynamic Life Cycle Costing
KTH, School of Industrial Engineering and Management (ITM), Production Engineering.
2010 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Maintenance is an extremely important issue in the industry. Testimony to this fact is that European companies spend about 140 billion euro per year on maintenance activities. In Sweden alone, the annual cost of maintenance and related activities reaches 250 billion crowns and these costs are the costs incurred when maintenance jobs are performed and does not include the consequences of poor maintenance with which the costs would be significantly higher.

The new paradigm in the manufacturing sector identifies utilization of production resources as a main competitive weapon. To meet the high demands of the industry like high efficiency, enhanced customization and high speed of delivery, a much higher operational availability and capability of production systems have to be achieved. In this context, maintenance becomes an important strategic issue.

The objectives of this study are to develop a dynamic LCC model supporting decision making in the early stages of investment and production development process allowing estimating and optimizing life cycle costs of production equipment including maintenance considerations. It will give the concerned stakeholders a better chance of estimating the whole life cycle costs and select proper design alternative for new investments. It can be used as a tool for the justification of investment in Condition Based Maintenance technologies which is underestimated in present calculation models.

Place, publisher, year, edition, pages
2010. , 43 p.
Series
Degree Project in Production Engineering Management, Second Level, 438
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:kth:diva-102785OAI: oai:DiVA.org:kth-102785DiVA: diva2:556576
Educational program
Master of Science - Production Engineering and Management
Uppsok
Technology
Supervisors
Examiners
Available from: 2012-09-25 Created: 2012-09-25 Last updated: 2012-09-25Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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  • asciidoc
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