Life Cycle Costings


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  • In my opinion human factor is the most important factor in terms of durability, productivity and continuity. So in your conceptual framework you should analyze time to learn and time to use (experience) merged together the number of shift workers. Managing the above variables you can try to build a formula where starting from a typical MTBF calculated in a laboratory, you can estimate the real MTB. Another factor are the needs. In a certainly way if in a market nothing changes, nothing must be changed so the life cycle tending to endless I think these are the heavier aspects to keep in mind when you calculate a TCO. Good luck for your research and I wish you a brilliant carrer. All the best. Davide
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  • currently am doing research on industrial product life cycle costing, i want your feedback regarding the model, conceptual framework and which method to be followed to collect data
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Life Cycle Costings

  1. 1. Life Cycle CostingFor IP CCTV Systems<br />Andy Macnamara <br />Business Manager<br />Vicon Industries Ltd<br />
  2. 2. Life Cycle Costing<br />Life Cycle Costing (LCC) also called Whole Life Costing is a technique to establish the total cost of ownership. <br />It is a structured approach that addresses all the elements of this cost and can be used to produce a spend profile of the product or service over its anticipated life-span.<br />
  3. 3. Life Cycle - IP CCTV <br />Expected Life Cycle of IP CCTV equipment<br />Expected Life Cycle of Network and associated equipment<br />Migration/Hybrid, expected time frames to change – effect on Life Cycle<br />Capacity of Network – Redundancy option<br />Period of life cycle - expectations<br />
  4. 4. There are 4 major benefits of LCC analysis:<br />Evaluation of competing options in purchasing; <br />Improved awareness of total costs; <br />More accurate forecasting of cost profiles; and <br />Evaluation of performance against cost.<br />
  5. 5. Option Evaluation.<br />LCC techniques allow evaluation of competing proposals on the basis of through life costs. LCC analysis is relevant to most service contracts and equipment purchasing decisions. <br />
  6. 6. Option Evaluation<br />
  7. 7. Improved Awareness<br />Application of LCC techniques provides management with an improved awareness of the factors that drive cost and the resources required by the purchase. <br />It is important that the cost drivers are identified so that most management effort is applied to the most cost effective areas of the purchase<br />
  8. 8. Improved Awareness<br />
  9. 9. Improved Forecasting.<br />The application of LCC techniques allows the full cost associated with a procurement to be estimated more accurately. <br />Additionally, LCC analysis allows more accurate forecasting of future expenditure to be applied to long-term costings assessments. <br />
  10. 10. Improved Awareness<br />
  11. 11. Performance Against Cost. <br />In purchasing decisions cost is not the only factor to be considered when assessing the options.<br />There are other factors such as the overall fit against the requirement and the quality of the goods and the levels of service to be provided. <br />
  12. 12. Performance against Cost<br />
  13. 13. one-off costs <br />procurement <br />implementation and acceptance <br />initial training <br />
  14. 14. Recurring costs<br />Retraining <br />Operating costs <br />Service charges <br />Downtime/non-availability<br />Maintenance and repair<br />Upgrades<br />Replacement<br />
  15. 15. IP CCTV Life Cycle Considerations<br />Design in redundancy and durability in the Network<br />Durability of product<br />Quality of Product<br />CCTV System Design <br />Future Expansion requirements<br />Support expectations<br />Service and maintenance of the system<br />Ongoing supply of parts<br />
  16. 16. Typical Digital Recording IP based CCTV Solution<br />Surveyor VFT<br /> Surveyor VFT IP Dome<br />VideoManagementStation<br />ViconNet Cameras<br />Wide Area Network (WAN) / Internet<br />Local Area Network(LAN)<br />Video Server <br />Kollector Pro: Digital Recorder /Server <br />Kollector Elite: Digital Recorder /Server<br />RAIDStorage<br />
  17. 17. Thank You<br />