Life Cycle Cost Analysis Example - Revision history

Lisa Hacker at 21:00, 18 September 2023

2023-09-18T21:00:58Z

← Older revision		Revision as of 21:00, 18 September 2023
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	<noinclude>{{Banner BlockSim Examples}}		<noinclude>{{Banner BlockSim Examples}}
	''This example appears in the [~~[Additional_Analyses#Life_Cycle_Cost_Analysis\|~~System ~~Analysis Reference book]~~]''.		''This example appears in the [https://help.reliasoft.com/reference/system_analysis System analysis reference]''.

Richard House at 21:54, 22 December 2015

2015-12-22T21:54:35Z

Richard House at 15:49, 21 September 2012

2012-09-21T15:49:58Z

← Older revision		Revision as of 15:49, 21 September 2012
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	From the summary, the total cost is $92,197.64. Note that an additional cost was defined in the problem statement that is not included in the summary. This cost, the operating cost per item per hour of operation, can be obtained by looking at the uptime of each block and then multiplying this by the cost per hour, as shown in the following table. Therefore, the total cost is <math>92,197+313,813=\$406,010.</math>		From the summary, the total cost is $92,197.64. Note that an additional cost was defined in the problem statement that is not included in the summary. This cost, the operating cost per item per hour of operation, can be obtained by looking at the uptime of each block and then multiplying this by the cost per hour, as shown in the following table. Therefore, the total cost is <math>92,197+313,813=\$406,010.\,\!</math>

	[[Image:9.21.2.gif\|center\|450px\|]]		[[Image:9.21.2.gif\|center\|450px\|]]

	If we also assume a revenue of $100 per unit produced, then the total revenue is our throughput multiplied by the per unit revenue, or <math>31,685\cdot \$100=\$3,168,500.</math>		If we also assume a revenue of $100 per unit produced, then the total revenue is our throughput multiplied by the per unit revenue, or <math>31,685\cdot \$100=\$3,168,500.\,\!</math>

Kate Racaza: Created page with '{{Banner BlockSim Examples}} ''This example appears in the System Analysis Reference book''. '''BlockSim Life Cost A…'

2012-08-21T22:44:42Z

Created page with '<noinclude>{{Banner BlockSim Examples}} ''This example appears in the System Analysis Reference book''. '''BlockSim Life Cost A…'

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<noinclude>{{Banner BlockSim Examples}}
''This example appears in the [[Additional_Analyses#Life_Cycle_Cost_Analysis|System Analysis Reference book]]''.

'''BlockSim Life Cost Analysis Example'''
</noinclude>
Consider the manufacturing line (or system) shown next.

[[Image:manufacturing line diagram.png|center|350px| Manufacturing line diagram.]]

The block properties, pool properties and crew properties are given in the following tables. All blocks identified with the same letter have the same properties (i.e., Blocks A = A1 and A2; Blocks B = B1, B2, B3 and B4; and Blocks C = C1, C2, C3 and C4).

[[Image:9_15.png|center|600px| Properties for blocks in manufacturing line.]]

[[Image:9_16.png|center|600px| Pool properties for maintenance on blocks in the manufacturing line.]]

[[Image:9_17.png|center|400px| Crew properties for maintenance on blocks in the manufacturing line.]]

This system was analyzed in BlockSim for a period of operation of 8,760 hours, or one year. 10,000 simulations were performed. The system overview is shown next.

[[Image:9.20.gif|center|300px| System overview from BlockSim.]]

Most of the variable costs of interest were obtained directly from BlockSim. The next figure shows the overall system costs.

[[Image:9.21.gif|center|300px| System costs summary from BlockSim.]]

From the summary, the total cost is $92,197.64. Note that an additional cost was defined in the problem statement that is not included in the summary. This cost, the operating cost per item per hour of operation, can be obtained by looking at the uptime of each block and then multiplying this by the cost per hour, as shown in the following table. Therefore, the total cost is <math>92,197+313,813=\$406,010.</math>

[[Image:9.21.2.gif|center|450px|]]

If we also assume a revenue of $100 per unit produced, then the total revenue is our throughput multiplied by the per unit revenue, or <math>31,685\cdot \$100=\$3,168,500.</math>

← Older revision		Revision as of 21:54, 22 December 2015
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	Consider the manufacturing line (or system) shown next.		Consider the manufacturing line (or system) shown next.

	[[Image:manufacturing line diagram.png\|center\|350px\| Manufacturing line diagram.]]		[[Image:manufacturing line diagram.png\|center\|350px\| Manufacturing line diagram.\|link=]]


	The block properties, pool properties and crew properties are given in the following tables. All blocks identified with the same letter have the same properties (i.e., Blocks A = A1 and A2; Blocks B = B1, B2, B3 and B4; and Blocks C = C1, C2, C3 and C4).		The block properties, pool properties and crew properties are given in the following tables. All blocks identified with the same letter have the same properties (i.e., Blocks A = A1 and A2; Blocks B = B1, B2, B3 and B4; and Blocks C = C1, C2, C3 and C4).

	[[Image:9_15.png\|center\|600px\| Properties for blocks in manufacturing line.]]		[[Image:9_15.png\|center\|600px\| Properties for blocks in manufacturing line.\|link=]]


	[[Image:9_16.png\|center\|600px\| Pool properties for maintenance on blocks in the manufacturing line.]]		[[Image:9_16.png\|center\|600px\| Pool properties for maintenance on blocks in the manufacturing line.\|link=]]


	[[Image:9_17.png\|center\|400px\| Crew properties for maintenance on blocks in the manufacturing line.]]		[[Image:9_17.png\|center\|400px\| Crew properties for maintenance on blocks in the manufacturing line.\|link=]]


	This system was analyzed in BlockSim for a period of operation of 8,760 hours, or one year. 10,000 simulations were performed. The system overview is shown next.		This system was analyzed in BlockSim for a period of operation of 8,760 hours, or one year. 10,000 simulations were performed. The system overview is shown next.

	[[Image:9.20.gif\|center\|300px\| System overview from BlockSim.]]		[[Image:9.20.gif\|center\|300px\| System overview from BlockSim.\|link=]]


	Most of the variable costs of interest were obtained directly from BlockSim. The next figure shows the overall system costs.		Most of the variable costs of interest were obtained directly from BlockSim. The next figure shows the overall system costs.

	[[Image:9.21.gif\|center\|300px\| System costs summary from BlockSim.]]		[[Image:9.21.gif\|center\|300px\| System costs summary from BlockSim.\|link=]]


	From the summary, the total cost is $92,197.64. Note that an additional cost was defined in the problem statement that is not included in the summary. This cost, the operating cost per item per hour of operation, can be obtained by looking at the uptime of each block and then multiplying this by the cost per hour, as shown in the following table. Therefore, the total cost is <math>92,197+313,813=\$406,010.\,\!</math>		From the summary, the total cost is $92,197.64. Note that an additional cost was defined in the problem statement that is not included in the summary. This cost, the operating cost per item per hour of operation, can be obtained by looking at the uptime of each block and then multiplying this by the cost per hour, as shown in the following table. Therefore, the total cost is <math>92,197+313,813=\$406,010.\,\!</math>

	[[Image:9.21.2.gif\|center\|450px\|]]		[[Image:9.21.2.gif\|center\|450px\|link=]]

	If we also assume a revenue of $100 per unit produced, then the total revenue is our throughput multiplied by the per unit revenue, or <math>31,685\cdot \$100=\$3,168,500.\,\!</math>		If we also assume a revenue of $100 per unit produced, then the total revenue is our throughput multiplied by the per unit revenue, or <math>31,685\cdot \$100=\$3,168,500.\,\!</math>