ISO 15663-1 pdf download – Petroleum and natural gas industries —Life cycle costing 一 Part 1: Methodology.
2.1.9
cost breakdown structure
structure related to the methods that an organization employs to record and report costs
2.1.10
cost driver
major cost element which it changed will have a major impact on the life-cycle cost of an option
2.1.11
cost element
identifiable part of the life-cycle cost of an option which can be attributed to an activity
2.1.12
cost Issue
cost element which if changed will not have a major ripact on the life-cycle cost of an option
2.1.13
fixed cost
cost that does not vary as the level of activity varies
2.1.14
life cycle
all development stages of an item of equipment or function, from when the study commences up to and including disposat
2.1.15
life-cycle cost
discounted cumulative total of all costs incurred by a specified function or item of equipment over its life cycle
2.1.16
life-cycle cost model
mathematical relationship between cost elements and life-cycle cost differences
2.1.17
life-cycle costing
process of evaluating the difference between the life-cycle costs of two or more alternative options
2.1.18
net present value
sn of the tofal discounted costs and revenues
2.1.19
operating expenditure
money used for operation and maintenance, including associated costs such as logistics and spares
2.1.20
payback period
period after which the initial captal invested has been paid back by the accumulated net revenue earned
2.1.21
sensitivity analysis
process of testing the outcome of a life-cycle costing in order to establish whether the final conclusion is sensitive to changes in assump(ions
2.1.22
structured breakdown of costs
list of cost elements associated with an option which has been structured taking into account the way in which the costs are acquired and recorded
3 Management of life-cycle costing
3.1 Objectives
a) To achieve agreement at a management level on asset objectives arid how life-cycle oosting is linked to these objectives;
b) to communicate the asset objectives and the role of life-cycle costing throughout the organization:
C) to define the objectives of life-cycle costing prior to any study taking place.
3.2 Roles and responsibilIties
3.2.1 All those having responsibility tot life-cycle costing within an organization shall be identified and informed 01 the responsibilities assigned to them.
3.2.2 An individual or organization shall be assigned the role of life-cycle costing coordinator to undertake the following tasks:
develop and plan the life-cycle costing strategy:
— develop life-cycle costing project procedures;
— facilitate and coordinate study activities;
— organize training of all key personnel.
The individual or organization may change depending on the asset phase.
NOTE The life-cycle costing coordinator may be a person or group already part at me pro,ect group
3.2.3 Organizations or individuals having responsibility for performing life-cycle costing shall
— understand I he life-cycle costing methodology and tailor it to the needs of the protect; provide the focus for identification and evaluation of alternative options;
— communicate the results to others — itis only by doing this that decisions can be influenced;
— fulfil the requirements determined during the planning stage.
In order for the full benefits of lit ecycle costing to be achieved, the effect on the overall value of an asset over its lifetime must be considered when making al major deCisions. tile-cycle costing is therefore the responobifity of all individuals who take these decisions.
3.3.2Life-cycle costing studies shall be carried out where benefits in terms of increased asset value can berealized by selecting the best option between competing alternatives. The options to be studied should be selectedon a systematic basis by considering the major contributions to capital and operating expenditures and revenueimpact.
3.3.3A plan shall be prepared outlining all life-cycle costing activities anticipated to be necessary throughoutasset life.
3.3.4 The plan shall identify the critical dates，resource requirements and the persons,departments andorganizations responsible for life-cycle costing at each phase of the project.
3.3.5 The plan shall identify the training needs of the coordinator and all persons having responsibility forundertaking life-cycle costing.
3.3.6 The plan shall identify data-collection activities and sources.
3.3.7 The plan shall identify any specific requirements for tools to be used for modelling.
3.3.8The plan shall identify the requirements for assessment (see clause 5), including the following:— the number of assessment stages;
– the level of independence of the assessment.
ISO 15663-1 pdf download – Petroleum and natural gas industries —Life cycle costing 一 Part 1: Methodology
