Lifecycle Costs for Energy Equipment: FMECA & Lifecycle Costing Models as “Decision Making” Tools for Cost Reduction During the Whole Equipment Life

Abstract

The economic crisis created the need to change the management approach on big energy construction projects. In order to reduce costs it is necessary to understand that the price to buy and install energy equipment is only the “top of the iceberg” compared to all costs that occur during the whole life cycle. The studies analyses two PLM (product lifecycle management) models/approaches that represent good management tools and help to reduce lifecycle costs. The two tools, although they do not provide precise results, are actually very appropriate because they allow choosing the cheapest variant to minimize lifecycle costs. In other words, they do not tell how much the costs will actually be but they allow choosing the cheapest option out of a number of alternatives.