Analysis of Life Cycle Cost Concepts and their Implementation by the Naval Facilities Engineering Command

Life Cycle Costing (LCC) is a tool, which can evaluate all the building-related costs over a specified period of time, as mentioned in the agreed scope. Though there are number of benefits, LCC practices of consultants in the building industry are claimed to be weak. Hence, the aim of this research is to investigate barriers in practicing LCC techniques experienced by Sri Lankan quantity surveyors. Accordingly, a mixed approached was followed in data collection through a questionnaires survey and a series of expert interviews. However, in Sri Lanka, building construction consultants are not practicing the LCC concept to a greater extent. This research identified, lack of awareness on the LCC tool by employers and practitioners, lack of knowledge on LCC and lack of previous data as the major barriers for practicing LCC techniques in local context. It was suggested that enhancing the practice of LCC through conducting various awareness programme on LCC concept, build up and maintain the proper database and introducing user friendly tools, applications, calculations methods, guidelines and regulations, will lead to avoid above mentioned barriers, which will ultimately enhance the proper practice of LCC concept in the Sri Lankan quantity surveyors.

In order to establish a rational bridge management program, it is necessary to develop a cost-effective decision-support system for the maintenance of bridges. In this paper, an attempt is made to develop a bridge management system that can provide practical maintenance plans by using an improved multi-objective genetic algorithm. A group of bridges is analyzed to demonstrate the applicability and efficiency of the proposed method. INTRODUCTIONIn Japan, maintenance work on bridge structures is increasing in volume and importance. The number of structures requiring repair or replacement will drastically increase in the coming ten years. In order to establish a rational maintenance program, the concept of Life-Cycle Cost (LCC) has gained great attention, which minimizes the total cost of whole lives of structures [1]. So far, the authors have developed LCC based bridge maintenance systems for existing concrete bridge structures [2, 3]. Concrete bridges are deteriorating due to the corrosion of reinforcing bars and the neutralization of concrete. Then, it is necessary to achieve an optimal maintenance plan that can provide appropriate methods and times of repair or replacement. However, the optimal maintenance problem is very difficult to solve, because it is one of combinatorial problems with discrete design variables and discontinuous objective functions. Furthermore, the tougher problem becomes , the larger and more complex it is. Although low-cost maintenance plans are desirable for bridge owners it is necessary to consider lifetime constraints when choosing an appropriate maintenance program. For example, the minimization of maintenance cost needs the target safety level and the expected service lifetime to be both prescribed. The predetermination of requirements may affect the possible maintenance plans. Namely, it may be possible to find out a better solution that can largely extend the service life if the safety level can be slightly decreased using the same amount of maintenance cost [4, 5]. In this paper, an attempt is made to improve the bridge management system proposed in [6], by developing an improved multi-objective genetic algorithm. Many alternative 17 ANALYSIS AND COMPUTATION SPECIALTY CONFERENCE th Copyright ASCE 2006 17th Analysis and Computation Conference maintenance plans with different characteristics can be obtained by introducing the concept of multi-objective optimization. Single-objective optimization can provide various solutions by changing the constraints. However, this approach requires enormous computation time. When selecting a practical maintenance plan, it is essential to compare feasible solutions obtained under various conditions. This process is effective for the accountability through the disclosure of information. A new multi-objective genetic algorithm is developed for the bridge management problems that have a lot of constraints. Several numerical examples are presented to demonstrate the applicability and efficiency of the proposed method.

Our project cost control is mostly concentrated in the construction phase cost control , tends to ignore the costs of the operational phase control.For the maintenance and repair of the existing bridge structure , this paper proposed the concept of life-cycle cost,had a detailed analysis of the composition of the life cycle cost.Based on the discount rate , and used the application of engineering principles of economics,proposed optimization mathematical model of the life cycle cost ,and gave the life-cycle cost analysis for bridge maintenance program with examples ,verified the validity of the model and the implementation of the need for life-cycle cost analysis, and it had practical significance for bridge maintenance phase of cost control.

Recently, maintenance of structures has become more and more important in many fields. A structure follows a life-cycle that consists of planning, design, construction, maintenance and replacement. In order to establish a rational and economic maintenance program, the concept of Life-Cycle Cost (LCC) has gained much more attention in engineering fields. In this paper, an attempt is made to develop a practical method based upon the adaptive genetic algorithm with Variable-Length chromosome (VL-GA) for an optimal maintenance planning of many concrete bridges based upon life-cycle cost. A numerical example is presented to demonstrate the applicability and efficiency of the proposed method.

: This study was undertaken in an attempt to determine the reasons for limited use of life cycle costing in material management. The author, while a member of Training and Doctrine Command in Combat Developments for six years and then in project management activities for the next two years, saw a great divergence of opinion in the use of life cycle cost. The decision makers in TRADOC were considering long range cost to the government in their Cost and Operational Effectiveness Analysis (COEA), DoD policy makers were praising life cycle cost as a decision criteria, The Defense Systems Management College taught life cycle cost as the primary consideration for long term logistic decisions, yet the project management personnel appear to be lacking in how and when to apply life cycle cost techniques. It was apparent to the author that this was a wide spread problem which would result in continued higher long term cost to the government unless an acceptable cost criteria could be established by DoD and provided to decision makers as implementing guidance. This study examined the attitudes of DoD policy makers, DoD project managers, and Industry project managers toward life cycle costing and their perception of the guidance and criteria in its implementation.

PurposeThe aim of this research is to carry out a literature review of the use of life cycle costing (LCC) in the urban agriculture (UA) sector by analysing its evolution over a 22-year period from its beginning in 1996 to July 2018.MethodsA total of 442 references were obtained from two principal databases, Scopus and Web of Science (WoS). After a long refining process, 20 (4.5%) references containing the keywords LCC and UA were selected for analysis. Then, we classified and organized the selected references in 4 groups. Qualitative methods were used for analysis, and results on general characteristics of the 20 references and by each group were elaborated. Lastly, we discussed and concluded the most significant findings. Limitations and future research were also included.Results and discussionOur major findings were as follows: (i) urban horticulture was the most studied urban agriculture practice among studies that used LCC for UA; (ii) LCC plays a secondary role in its integration with LCA; (iii) only 4 of the10 papers in group 1 used additional financial tools; (iv) very few (3) papers appropriately applied the four main LCC stages; and on the other side, essential costs like infrastructure, labour, maintenance, and end-of-life were frequently not included.ConclusionsSince we found that life cycle assessment (LCA) was the predominant methodology, we suggest that future research apply both LCA and LCC analyses at the same level. The LCC analysis was quite incomplete in terms of the costs included in each LCC stage. We recommend that the costs at the initial or construction stage be considered a necessity in future studies in order to implement these new systems on a large scale. Due to the limited use of labour cost at the operation stage, we also suggest that labour be included as an essential part of the urban production process. Finally, for more complete LCC analysis for UA, we recommend (i) that all LCC stages be considered and (ii) that additional financial tools, such as net present value (NPV), internal rate of return (IRR) and payback period (PBP), be used to complement the LCC analysis.

Purpose– The purpose of this paper is to establish the extent to which life cycle costing (LCC) is used as an early stage project evaluation tool by practitioners in the UK construction industry. The use of this evaluation tool has long been advocated by academics as a means of ensuring best value rather than lowest cost is a driver for business decisions related to potential built environment projects. Therefore there is a need to appraise its current uptake levels amongst built environment professionals and assess whether there are any barriers affecting its use in UK practice.Design/methodology/approach– Using a mixed methods approach, the authors present the findings from a survey of construction professionals located in the UK and the results from a series of follow up semi-structured interviews designed to further explore the factors found to affect the use of LCC in practice.Findings– The study shows that LCC is still not widely used by built environment professionals in the UK. The greatest inhibitor on the take up of the tool is the need of clients to budget on short-term horizons. Other factors such as a lack awareness of the tool by practitioners and clients, unreliability of data into the long term and the overriding need for commercially driven projects to achieve maximum return on investment continue to inhibit the widespread adoption of LCC as an early stage project evaluation tool. These findings have implications for the capability of the UK construction industry to deliver on its commitment to enhance the sustainability of the built environment.Originality/value– The paper offers insights into the current use of LCC and the factors affecting its use in the UK.

Life Cycle Cost Optimization Within Decision Making on Alternative Designs of Public Buildings

The aim of this paper was to discuss the use of Life Cycle Cost (LCC) in the assessment of electricity generation systems. To that end, it was conducted a systematic literature review. EndNote, Mendeley and Excel spreadsheets were used to manage references, while the VOSviewer and Microsoft Power Business Intelligence software tools were used to create visual maps. Europe seemed to stand out regarding the number of studies, while there was a lack of LCC studies in America, Asia and Oceania. Concerns seem to have switched from being only about the source for producing electricity to how to diversify the energy system including renewable energy in the energy mix. Overall, there seems to be a shortage of recent studies regarding the LCC of electricity generation systems, which requires further contributions to enable better decision-making.

We suggest a 2D-plot representation combined with life cycle greenhouse gas (GHG) emissions and life cycle cost for various energy conversion technologies. In general, life cycle assessment (LCA) not only analyzes at the use phase of a specific technology, but also covers widely related processes of before and after its use. We use life cycle GHG emissions and life cycle cost (LCC) to compare the energy conversion process for eight resources such as coal, natural gas, nuclear power, hydro power, geothermal power, wind power, solar thermal power, and solar photovoltaic (PV) power based on the reported LCA and LCC data. Among the eight sources, solar PV and nuclear power exhibit the highest and the lowest LCCs, respectively. On the other hand, coal and wind power locate the highest and the lowest life cycle GHG emissions. In addition, we used the 2D plot to show the life cycle performance of GHG emissions and LCCs simultaneously and realized a correlation that life cycle GHG emission is largely inversely proportional to the corresponding LCCs. It means that an expensive energy source with high LCC tends to have low life cycle GHG emissions, or is environmental friendly. For future study, we will measure the technological maturity of the energy sources to determine the direction of the specific technology development based on the 2D plot of LCCs versus life cycle GHG emissions.

Synergistic generation of energy and water in remote communities: Economic and environmental assessment of current situation and future scenarios

This paper is the second part of a two-paper series dealing with the sustainability evaluation of a new communicative packaging concept. The communicative packaging concept includes a device that allows changing the expiry date of the product as function of temperature during transport and storage: a flexible best-before-date (FBBD). Such device was analysed in a consumer unit consisting of a nanoclay-based polylactic acid tray filled with pork chops. An economic assessment was made through the use of life cycle costing (LCC) methodology proposed by Bovea and Vidal (Resources, Conservation and Recycling Volume 41, Issue 2, May 2004, Pages 133–145) where both internal and external costs were considered. Furthermore, the social aspects were analysed using a contingent valuation (CV) of the willingness to pay (WTP). The sustainability assessment of FBBD was made through the combination of life cycle assessment (LCA) and LCC results, together with the CV of the WTP according to the method proposed by Bovea and Vidal. It was assumed that the use of the FBBD minimizes the food losses from 3.5% to 0.5%. LCC results show that internal costs related to pork chops and logistic supply chain life cycle represent more than 90% of life cycle cost. The use of FBBD communicative device could increase pork chop selling price between 0.01 and 0.1 € since the purchasing cost of this communicative device is included in this price. WTP results show that FBBD purchasing cost for consumer acceptance is estimated as 0.05 €/FBBD. Therefore, only pork chop selling price for scenarios 1 (0.05 €/device) and 3 (0.01 €/device) could be accepted by consumers. The most sustainable situation is reached when the cost of the FBBD is as less as possible (0.01 €). The use of FBBD communicative device has economic advantages for perishable products since it contributes to the increase in the economic savings due to the reduction of food losses. However, these economic savings represent a small percentage over pork chop selling price, and therefore, an FBBD price less than 0.02 €/device is required. If a lower price for the communicative device is reached, satisfying the WTP of consumers (0.05 €/FBBD), the communicative package will be much more sustainable. It is expected that the competitiveness of FBBD communicative device will be improved in the future. This might be accomplished by reducing FBBD production and distribution costs and increasing their social acceptance, providing more sustainable solutions.

Feasibility study and economic analysis of pumped hydro storage and battery storage for a renewable energy powered island

PurposeThe ability to measure and assess “quality” is essential in building and maintaining a safe and effective transportation system. Attaining acceptable quality outcomes in transportation projects has been a reoccurring problem at both the federal and state levels, at least partially, as a result of poorly developed, inefficient or nonexistent quality assurance/quality control (QA/QC) processes. The purpose of this paper is to develop and implement a new QA/QC process that focuses on a novel double-bounded performance-related specification (PRS) and corresponding pay factor policy that includes both lower and upper quality acceptance and payment reward boundaries for bridge concrete.Design/methodology/approachThe authors use historical data to design different payment scenarios illustrating likely industry responses to the new PRS, and select the single scenario that best balances risk between the agency and industry. The authors then convert that payment scenario to a pay factor schedule using a search heuristic and determine statistical compliance with the PRS using percent-within-limits (PWL).FindingsThe methodology offers an innovative approach for developing an initial set of pay factors when lifecycle cost data are lacking and the PRS are new or modified. An important finding is that, with a double-bounded PRS, it is not possible to represent pay factors using the simplified table PWL currently employed in practice because each PWL value occupies two separate positions in the payment structure – one above the design target and one below it. Therefore, a more detailed set of pay factors must be employed which explicitly specify the mean sample value and the design target. The approach is demonstrated in practice for the Agency of Transportation in state of Vermont.Research limitations/implicationsThe authors demonstrate a novel approach for developing a double-bounded PRS and introduce a payment incentive/disincentive policy with the goal of improving total product quality. The new pay factor policy includes both a payment penalty below the contracted price for failing to meet a specified performance criterion as well as a payment premium above the contracted price that increases as the sample product specification approaches an “ideal” design value. The PRS includes both an upper and lower acceptance boundary for the finished product as opposed to only a lower tail acceptance boundary, which is the traditional approach.Practical implicationsThe authors illustrate a research collaboration between academia and a state agency that highlights the role academic research can play in advancing quality management practices. The study involves the use of actual product performance data and is operational as opposed to conceptual in nature. Finally, the authors offer important practical insights and guidance by demonstrating how a new PRS and pay factor policy can be developed without the use of site-specific historical lifecycle cost (LCC) data that include detailed manufacturing, producing and placement cost data, as data related to product performance over time. This is an important contribution, as the development and implementation of pay factor policies typically involve the use of historical LCC data. However, in many cases, these data are not available or may be incomplete.Social implicationsWith the new PRS and pay factor schedule, the Agency expects shrinkage and cracking on bridge decks to decrease along with overall maintenance and rehabilitation costs. A major focus the new PRS is to actively involve industry partners in quality improvement efforts.Originality/valueThe authors focus on a major modification to an existing QA/QC process that involves the development of a new PRS and an associated pay factor policy undertaken by the Vermont Agency of Transportation. The authors use empirical data to develop a novel double bounded PRS and payment schedule for concrete and offer unique operational/practical insight and guidance by demonstrating how a new PRS and pay factor policy can be developed without the use of site-specific historical LCC. Typically, PRS for in-place concrete have only a lower tail acceptance boundary.

The Architecture/Engineering/Construction (AEC) industry is one of the multidisciplinary domains in which collaboration among related parties is of utmost importance1. Despite the intense flow of information between design and LCC (Life Cycle Cost) professionals, there is a lack of research to better understand and manipulate these processes. Architecture design and LCC management is a process of planning a tangible building and cost on a tangible land through intangible work. Due to this characteristic of design work, conventional design management was conducted around the drawings as the final outcome, but actual individual processes of design and LCC (Life Cycle Cost) planning for facility were excluded. As a result, design work and LCC planning completely depended on the individual abilities and experiences of each architect and LCC planner. Even organization of information required for design and LCC process are considered to belong to the domain of individual ability. Therefore, this study proposes an integrated system development methodology of design and LCC process for an information oriented design and LCC management system, which allows architects and LCC planners to easily access information to be provided in each design stage and its relevant LCC planning process, and for design and cost management companies to improve the performance through the systematic storage and usage of data after the completion of an educational project. This research analyzes actual design and LCC processes in currently active companies and proposes a standard design and LCC process, and then examines input and output information for each task in the process in order to propose an information oriented standard design and LCC process. Based on this, Data Flow Diagram (DFD) and Entity Relationship Diagram (ERD) is designed for an information oriented design and LCC management system.