Life Cycle Cost Model for Considering Fleet Utilization in Early Conceptual Design Phases

Abstract

Cost prediction is commonly used when making decisions during the product development process. Oil and gas service companies must consider all life cycle costs for their business models. In addition to capital and operational expenditures, consideration of product utilization is essential. The cost of product failures, maintenance and repairs greatly impact the overall cost model. This paper describes an approach for simulating service availability and corresponding necessary fleet sizes based on existing life cycle cost models. A detailed case study presents the model viability and highlights key leverage points for cost reductions.