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

Johannknecht, Florian; Gatzen, Matthias; Lachmayer, Roland

doi:10.1016/j.procir.2016.03.112

Cited by 8 publications

(9 citation statements)

References 7 publications

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“…One of these is the model developed by Johannknecht (Johannknecht et al, 2019;Johannknecht et al, 2016a). Johannknecht divides the lifecycle costs into two distinct areas: capital expenditure (capex) which are mainly the initial production costs and operational expenditures (opex) which are the costs occurring during operation like material costs, labour costs and third-party costs (Johannknecht et al, 2016b). As shown in Figure 3, these costs are then further divided into wear parts, consumable parts, maintenance, repairs, external repairs and external inspections.…”

Section: Life Cycle Costingmentioning

confidence: 99%

“…As shown in Figure 3, these costs are then further divided into wear parts, consumable parts, maintenance, repairs, external repairs and external inspections. (Johannknecht et al, 2016b) The LCC of the product is then calculated as: The sum of capital expenditure plus operational expenditure, times the total time of use. For the calculation of the six components Johannknecht has defined (2018) six equations.…”

Section: Life Cycle Costingmentioning

confidence: 99%

“…But in the case of a fleet the low cost product can have a lower availability which means a larger fleet is necessary resulting in an overall higher cost despite the lower individual cost. (Schneider et al, 2020) In existing models for calculating the life cycle costs of a PSS, the maintenance costs are calculated by utilising a mean time between maintenance value derived from a periodic maintenance strategy (Johannknecht et al, 2016b). But with the increased digitalization of products with concepts like the digital twin, being implemented by companies more frequently, the maintenance strategies employed by many companies change.…”

Section: Introductionmentioning

confidence: 99%

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Implementation of Maintenance Strategies in the Life Cycle Costing of Product-Service Systems

et al. 2021

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Estimating the costs of products during development to design a cost efficent product is a well established process. But in the case of Product-Service Systems estimating the costs of the individual product is not sufficent. Instead it is necessary to calculate the cost incured over the entire life cycle of the product. Because with Product-Service Systems the majority of costs is not incurred during manufacturing of the product but instead during the operation. One of the major cost components accruing during the operation of the product are the maintennace costs. Therefore, current life cycle costing models show the impoact of component design on the maintennace cost of the Product-Service System. But they do not show how different maintennace strategies that can have an impact on the overall life cycle costs of the Product-Service System. Thus, this paper shows a method for the implementation of different maintennace strategies into life cycle costing and applies it in an industrial use case.

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Section: Life Cycle Costingmentioning

confidence: 99%

Section: Life Cycle Costingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Implementation of Maintenance Strategies in the Life Cycle Costing of Product-Service Systems

et al. 2021

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“…Lifecycle costing (LCC) was initially developed for decision support in the US Department of Defence when making procurement decisions (White and Ostwald, 1976) and remains in use until today. According to Asiedu and Gu (1998) LCC can be used for a variety of different products, which is supported by a wide field of applications, while Fabrycky and Blanchard (1991) describe a hypothetical industrial use case of portfolio manager, and Johannknecht et al (2016b) describe the actual use in the industrial sector with Baker Hughes with a focus on product development. In addition, many examples for LCC exist in the construction industry (Bull, 1993;Goh and Sun, 2016;Salem et al, 2003).…”

Section: Lifecycle Costingmentioning

confidence: 99%

The Importance of Considering Fleet Size in the Lifecycle Cost Analysis of Product Service Systems

Schneider

Gatzen

Lachmayer

2020

Proc. Des. Soc.: Des. Conf.

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The use of product-service systems business models is increasing in today's economy. Because the products that provide the service to the customers incur cost during their lifetime, the method of lifecycle costing finds wide-spread use. However, this paper shows the current methods have some inaccuracies when determining lifecycle costs. The methods do not consider the required number of products necessary to provide the offered service to the customers. This paper describes a new framework for lifecycle costing that includes these cost components.

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“…In the case of LCC analysis, the study by Johannknecht et al (2016 a ) combined fleet size, availability, and LCC for gas and oil services. This paper is interesting because it provides a model based on cost efficiency, where fleet size depends on availability.…”

Section: Literature Reviewmentioning

confidence: 99%

Fleet optimization considering overcapacity and load sharing restrictions using genetic algorithms and ant colony optimization

Kristjanpoller

Michell

Kristjanpoller

et al. 2020

AIEDAM

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This paper presents a fleet model explained through a complex configuration of load sharing that considers overcapacity and is based on a life cycle cost (LCC) approach for cost-related decision-making. By analyzing the variables needed to optimize the fleet size, which must be evaluated in combination with the event space method (ESM), the solution to this problem would normally require high computing performance and long computing times. Considering this, the combined use of an integer genetic algorithm (GA) and the ant colony optimization (ACO) method was proposed in order to determine the optimal solution. In order to analyze and highlight the added value of this proposal, several empirical simulations were performed. The results showed the potential strengths of the proposal related to its flexibility and capacity in solving large problems with a near optimal solution for large fleet size and potential real-world applications. Even larger problems can be solved this way than by using the complete enumeration approach and a non-family fleet approach. Thus, this allows for a more real solution to fleet design that also considers overcapacity, availability, and an LCC approach. The simulations showed that the model can be solved in much less time compared with the base model and allows for the resolution of a fleet of at least 64 trucks using GA and 130 using ACO, respectively. Thus, the proposed framework can solve real-world problems, such as the fleet design of mining companies, by offering a more realistic approach.

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

Cited by 8 publications

References 7 publications

Implementation of Maintenance Strategies in the Life Cycle Costing of Product-Service Systems

Implementation of Maintenance Strategies in the Life Cycle Costing of Product-Service Systems

The Importance of Considering Fleet Size in the Lifecycle Cost Analysis of Product Service Systems

Fleet optimization considering overcapacity and load sharing restrictions using genetic algorithms and ant colony optimization

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