Asset Life Cycle Management. Case Studies on Asset Life Cycle Cost Modelling

Transcription

1 Asset Life Cycle Management Case Studies on Asset Life Cycle Cost Modelling

2 Contents The Basics The Process Different Models Examples / Case Studies

3 Asset Life Cycle Cost Basics Life Span (Assessment Period) Life Cycle (Asset Estimated Life) Total Cost Replacement Refurbishment Financial Year Time

4 Life Cycle Cost Modelling Process Step 1: Define the Scope of the Analysis Step 2: Develop or adjust the LCC Model Step 3: Define Team. Collect Information Step 4: Populate the Model Step 5: Review and Optimise the Model Step 6: Decision and Implement the Solution Step 7: Maintain the Model Stakeholder involvement Project plan review Scope of analysis Data requirements analysis Model selection Depreciation policies and rates Governing accounting practices Categorisation of cost contributors Validation of the model by Accounting Team identification Responsibility allocation Data collection and configuration Data verification Audit trail for data entries Consensus discussion Base results demonstration Reality checks Sensitivity analysis Variations Presentation to Stakeholders Consensus Budget alignment and Project Team appointment Implementation project definition and activation Populate actual data Adjust and review

5 Different Models Optimum Replacement Age Repair / Replacement Alternative Decision Making Maintenance Strategy Selection Other Uses

6 Optimum Replacement Age Models Life Cycle Cost Replace every Year LCC 1 Replace Every 2 Years LCC 2 Optimal Asset Life? Replace Every 3 Years LCC 3 Replace Every 4 Years LCC 4 Etc. LCC X

7 Cost Summations across Life Span (Example) Replacement Interval Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 LCC Every Year $77.95M Every 2 Years $47.95M Every 3 Years $37.5M Every 2 Years $34.45M Every 4 Years $33.65M Every 5 Years $32.55M Every 6 Years $32.5M Every 7 Years $35.2M Every 8 Years $38.9M Every 9 Years $41.7M Every 10 Years $45.05M Costs [$M] Y0 Y1 Y2 Y3 Y4 Y5 Time Y6 Y7 Y8 Y9 Y10

8 Excel based Model Representation

9 Asset Life Determination

10 Asset Life Determination

11 Repair or Replace? Old Truck? New Truck?

12 Repair / Replacement Models Life Cycle Cost Replace After 1 Year LCC 1 Replace After 2 Years LCC 2 Maintain or Replace? Replace After 3 Years LCC 3 Replace After 4 Years LCC 4 Etc. LCC X

13 Cost Summations across Life Span (Example) Replacement Year 0 Y0 Y1 10 Y2 Y3 20Y4 Y5 30 Y6 Y7 Y840 Y9 [$M] Y10 LCC Replace Y $27.30M Replacement Capital Replace Y $27.05M Replace Y Maintenance Costs $26.80M Replace Y Process 1.25Costs1.25 $29.45M Replace Y Lost Productivity $30.65M Replace Y $32.45M Disposal Replace Y $32.50M Replace Y $35.20M Replace Y $38.90M Replace Y $41.70M Replace Y $45.05M Costs [$M] Y0 Y1 Y2 Y3 Y4 Y5 Time Y6 Y7 Y8 Y9 Y10

14 Excel based Model Representation

15 Replace Y25 (2031) Repair/Replace Model Current Machine Depreciation Disposal Shutdown Lost Productivity Lost Productivity Lump Sum Capital Lump Sum OPEX Routine Process Routine Maintenance Replacement Capital Replace Y3 (2009) Replace Y4 (2010) Replace Y5 (2011) Replace Y6 (2012) Replace Y7 (2013) Replace Y8 (2014) Replace Y9 (2015) Replace Y10 (2016) Replace Y11 (2017) Replace Y12 (2018) Replace Y13 (2019) Replace Y14 (2020) Replace Y15 (2021) Replace Y16 (2022) Replace Y17 (2023) Replace Y18 (2024) Replace Y19 (2025) Replace Y20 (2026) Replace Y21 (2027) Replace Y22 (2028) Replace Y23 (2029) Replace Y24 (2030) Replacement Year Replace Y2 (2008) Replace Y0 (2006) Replace Y1 (2007) Net Present Values [Millions]

16 Coal Terminal Assets

17 Stacker Repair / Replace Model

18 Reclaimer Repair / Replace Model

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22 Repair/Replacement Model Example 1

23 Pasteuriser Performance Improvement Alrode L9 Pasteuriser IQMS Results IQMS Results [%] Apr- 00 May- 00 Jun- 00 Jul- 00 Aug- 00 Sep- 00 Oct- 00 Nov- 00 Dec- 00 Jan- 01 Feb- 01 Mar- 01 Apr- 01 May- 01 Jun- 01 Month

24 Alternative Decision Making

25 Maintenance Strategy Selection Cyclic fatigue cracking Reinforcing webs

26 Maintenance Strategy Selection Risk Based Maintenance Task LCC Comparison Alternative Risk Based Maintenance Solutions (Mitigated Risk) TLCC NPV [AUD] Current Risk RBM: Condition Based Maintenance RBM: Usage Based Maintenance RBM: Run to failure Maintenance RBM: Design Improvement Maintenance Non-RBM Maintenance Maintenance Types of Work

27 Life Span Impact

28 Life Cycle Cost Modelling Other Uses

29 Life Cycle Cost Management Life Cycle Costs $ Time 22 Replacement Year Scenarios Assets Fleet Plan Rolling Years X?) Fleet Total LCC $ $ $ $ $ $ $ $ $ $ Replacement Scenario Costs

30 Life Cycle Cost

31 Machine Benchmarking Cumulative Costs Target (Model) Machine 1 Machine 2 Usage

32 Dubai Festival City / Dubai Palm Jumeirah

33 Modelling Software Tools Excel APT Lifespan (Woodhouse Partnership) AssetLife (Hansen Corporation) Meridium Reliability Solution Life Cycle Cost Module

34 References Standards: Australian Federal Income Tax Legislation AS 15288: 2003 Systems Engineering System Life Cycle Processes AS/NZS 4356: Life cycle costing An application guide Australian Accounting Standard AAS 4 Depreciation Australian Accounting Standard AAS 116 Property, Plant and Equipment International Financial Reporting Standards (lfrs) IAS 16 and IAS 36 Standards Australian Government Depreciation Guidelines Australian Master Tax Guide TR 2009/4: Taxation Ruling Income tax: effective life of depreciating assets GAAP (Generally Acceptable Accounting Practices) Life cycle costing Better Practice Guide Australian National Audit Office Books: Maintenance, Replacement and Reliability, A.K.S. Jardine Life Cycle Cost and Economic Analysis, Prentice Hall, Englewood Cliffs, NJ Life Cycle Cost, Reliability, Maintainability, and Supportability Guidebook, Warrendale, PA Life Cycle Costing: Techniques, Models and Applications, B. S. Dhillon Life Cycle Cost and Economic Analysis, Benjamin S. Blanchard, Fabrycky, Wolter J Websites: APT Lifespan: LCC Ware 3: Barringer & Associates, Inc: