Economics of Early Equipment Management - Life Cycle Costing

Abstract

As competition is increasing day by day, industries are giving more and more emphasis upon managing equipment efficiencies to keep pace with the fast moving competition. Equipment should be designed to help the Company to maximize profitability Today, where profitability is so often ‘marginal’, effective management and life cycle costs are magnified in importance. Life cycle costing is the systematic decision making to evaluate overall cost effectiveness at the design stage of the system. This paper addresses the basics of Early Equipment Management and gives details of life cycle costs. Various stages of Early Equipment Management where trade-offs in life cycle costs are possible are also discussed.