Life Cycle Costing Analysis (LCCA) is an economic assessment of an item, or facility over its life, expressed in terms of equivalent cost, using baseline identical to those used for initial cost. In facilities management, future costs will often match or exceed the initial cost of procurement. Owners are rcognizing the relationship between costs and looking for ways to reduce total life cycle cost without adding undue burdens to initial procurement. Thus, LCCA is used to compare various options by identifying and assessing economic impacts over the life of each option.
- To introduce LCCA uses in facilities management.
- To understand the element of costs and its nature.
- To understand the classification of costs associated with that particular asset.
- To estimate and compute the LCCA via Present method and Annualized method.
- To establish simple LCCA model for facilities management uses.