AS/NZS 4536:1999
Life cycle costing - An application guide
Sets out a process for life cycle costing of a product as a component of an economic evaluation. The Standard is intended for use by both customers (users) and suppliers of products. Following the proposed methodology will give a dollar value representing the life cycle cost of the product. Appendices propose hypothetical worked examples which reflect the use of the outlined analysis, a sample spreadsheet indicating typical costs that may occur over the life cycle phases, typical cost-generating activities and an elaboration of real cost, nominal cost and discounted cost.
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AS/NZS 4536:1999 LIFE CYCLE COSTING-AN APPLICATION GUIDE
PREFACE
CONTENTS
FOREWORD
SECTION 1 SCOPE AND GENERAL
1.1 SCOPE
1.2 REFERENCED DOCUMENTS
1.3 DEFINITIONS
1.3.1 Acquisition cost
1.3.2 Base date
1.3.3 Cost driver
1.3.4 Cost element
1.3.5 Dependability
1.3.6 Discounted cost
1.3.7 Disposal cost
1.3.8 Life cycle cost (LCC)
1.3.9 Life cycle
1.3.10 Life cycle costing
1.3.11 Maintainability
1.3.12 Maintenance support
1.3.13 Nominal cost
1.3.14 Nominal discount rate
1.3.15 Ownership cost
1.3.16 Product
1.3.17 Real cost
1.3.18 Real discount rate
1.3.19 Reliability
1.3.20 Stakeholder
1.3.21 Support
1.3.22 Value management
SECTION 2 LCC CONCEPT
2.1 OBJECTIVES OF LIFE CYCLE COSTING
2.2 PRODUCT LIFE-CYCLE PHASES AND LCC
2.3 PRODUCT DECISIONS AND THE EFFECTS ON LCC
SECTION 3 LCC MODEL
3.1 GENERAL
3.2 LCC BREAKDOWN INTO COST ELEMENTS
3.3 METHODS FOR ESTIMATING COST ELEMENTS
SECTION 4 LIFE CYCLE COSTING PROCESS
4.1 GENERAL
4.2 LCC ANALYSIS PLAN
4.3 LCC MODEL DEVELOPMENT
4.4 LCC MODEL ANALYSIS
4.5 LCC ANALYSIS DOCUMENTATION
4.6 REVIEW OF LCC RESULTS
4.7 ANALYSIS UPDATE
APPENDIX A - EVALUATION PROCESSES
A1 GENERAL
A2 UNCERTAINTY AND RISKS
A3 TAXATION
APPENDIX B - EXPRESSIONS OF COST
B1 GENERAL
B1.1 Real cost
B1.2 Nominal cost
B1.3 Discounted cost
APPENDIX C - TYPICAL COST-GENERATING ACTIVITIES
C1 GENERAL
C2 TYPICAL COSTS IN PRODUCT'S LIFE CYCLE PHASES
C2.1 Concept and definition
C2.2 Design and development
C2.3 Manufacturing and installation
C2.4 Operation and maintenance
C2.5 Disposal
C3 COST ELEMENTS EXPLANATION
APPENDIX D - LCC ESTIMATION TECHNIQUES AND EXAMPLES
D1 PARAMETRIC COST ESTIMATING
D1.1 General
D1.2 Parametric cost-estimating example
D2 ANALOGOUS COST ESTIMATING
D2.1 General
D2.2 Analogous cost-estimating example
D3 ENGINEERING COST ESTIMATING
D3.1 General
D3.2 Engineering cost-estimating example
APPENDIX E - WORKED EXAMPLES
E1 WORKED EXAMPLE 1
E2 WORKED EXAMPLE 2—OUTLINE
E2.1 General
E2.2 Purpose and scope
E2.3 LCC model description
E2.4 Model analysis
E2.5 Conclusion and discussion
E3 WORKED EXAMPLE 3
E3.1 General
E3.2 Assumptions for the construction option
E3.3 Assumptions for lease option
E3.4 Analysis documentation process
E4 WORKED EXAMPLE
APPENDIX F - TYPICAL INFORMATION REQUIRED FOR AN LCC ANALYSIS
APPENDIX G - DEPENDABILITY AND LCC RELATIONSHIPS
G1 GENERAL
G2 RELIABILITY VERSUS LCC
G3 PRODUCT MAINTAINABILITY
G4 USAGE
G5 PRODUCT ENVIRONMENT
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References
Value management
Environmental management - Life cycle assessment - Principles and framework
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AS/NZS 4536:1999 LIFE CYCLE COSTING-AN APPLICATION GUIDE
PREFACE
CONTENTS
FOREWORD
SECTION 1 SCOPE AND GENERAL
1.1 SCOPE
1.2 REFERENCED DOCUMENTS
1.3 DEFINITIONS
1.3.1 Acquisition cost
1.3.2 Base date
1.3.3 Cost driver
1.3.4 Cost element
1.3.5 Dependability
1.3.6 Discounted cost
1.3.7 Disposal cost
1.3.8 Life cycle cost (LCC)
1.3.9 Life cycle
1.3.10 Life cycle costing
1.3.11 Maintainability
1.3.12 Maintenance support
1.3.13 Nominal cost
1.3.14 Nominal discount rate
1.3.15 Ownership cost
1.3.16 Product
1.3.17 Real cost
1.3.18 Real discount rate
1.3.19 Reliability
1.3.20 Stakeholder
1.3.21 Support
1.3.22 Value management
SECTION 2 LCC CONCEPT
2.1 OBJECTIVES OF LIFE CYCLE COSTING
2.2 PRODUCT LIFE-CYCLE PHASES AND LCC
2.3 PRODUCT DECISIONS AND THE EFFECTS ON LCC
SECTION 3 LCC MODEL
3.1 GENERAL
3.2 LCC BREAKDOWN INTO COST ELEMENTS
3.3 METHODS FOR ESTIMATING COST ELEMENTS
SECTION 4 LIFE CYCLE COSTING PROCESS
4.1 GENERAL
4.2 LCC ANALYSIS PLAN
4.3 LCC MODEL DEVELOPMENT
4.4 LCC MODEL ANALYSIS
4.5 LCC ANALYSIS DOCUMENTATION
4.6 REVIEW OF LCC RESULTS
4.7 ANALYSIS UPDATE
APPENDIX A - EVALUATION PROCESSES
A1 GENERAL
A2 UNCERTAINTY AND RISKS
A3 TAXATION
APPENDIX B - EXPRESSIONS OF COST
B1 GENERAL
B1.1 Real cost
B1.2 Nominal cost
B1.3 Discounted cost
APPENDIX C - TYPICAL COST-GENERATING ACTIVITIES
C1 GENERAL
C2 TYPICAL COSTS IN PRODUCT'S LIFE CYCLE PHASES
C2.1 Concept and definition
C2.2 Design and development
C2.3 Manufacturing and installation
C2.4 Operation and maintenance
C2.5 Disposal
C3 COST ELEMENTS EXPLANATION
APPENDIX D - LCC ESTIMATION TECHNIQUES AND EXAMPLES
D1 PARAMETRIC COST ESTIMATING
D1.1 General
D1.2 Parametric cost-estimating example
D2 ANALOGOUS COST ESTIMATING
D2.1 General
D2.2 Analogous cost-estimating example
D3 ENGINEERING COST ESTIMATING
D3.1 General
D3.2 Engineering cost-estimating example
APPENDIX E - WORKED EXAMPLES
E1 WORKED EXAMPLE 1
E2 WORKED EXAMPLE 2—OUTLINE
E2.1 General
E2.2 Purpose and scope
E2.3 LCC model description
E2.4 Model analysis
E2.5 Conclusion and discussion
E3 WORKED EXAMPLE 3
E3.1 General
E3.2 Assumptions for the construction option
E3.3 Assumptions for lease option
E3.4 Analysis documentation process
E4 WORKED EXAMPLE
APPENDIX F - TYPICAL INFORMATION REQUIRED FOR AN LCC ANALYSIS
APPENDIX G - DEPENDABILITY AND LCC RELATIONSHIPS
G1 GENERAL
G2 RELIABILITY VERSUS LCC
G3 PRODUCT MAINTAINABILITY
G4 USAGE
G5 PRODUCT ENVIRONMENT
AS/NZS 4536:1999
Online Library subscription pricing
The cost of your subscription will depend on which standards you want to access, and how many people in your organisation need to be able to access the Online Library subscription at the same time (concurrent users). During your subscription period, we are also able to make any necessary changes and ensure you are aware of any pricing changes that result. For a quote, contact our Online Library team by emailing onlinelibrary@standards.govt.nz.