• LCCA
  • Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. (wbdg.org)
  • LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings. (wbdg.org)
  • For example, LCCA will help determine whether the incorporation of a high-performance HVAC or glazing system , which may increase initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not. (wbdg.org)
  • The purpose of an LCCA is to estimate the overall costs of project alternatives and to select the design that ensures the facility will provide the lowest overall cost of ownership consistent with its quality and function . (wbdg.org)
  • The LCCA should be performed early in the design process while there is still a chance to refine the design to ensure a reduction in life-cycle costs (LCC). (wbdg.org)
  • LCCA can be repeated throughout the design process if more detailed cost information becomes available. (wbdg.org)
  • Life-cycle cost analysis (LCCA) is a tool to determine the most cost-effective option among different competing alternatives to purchase, own, operate, maintain and, finally, dispose of an object or process, when each is equally appropriate to be implemented on technical grounds. (wikipedia.org)
  • For example, for a highway pavement, in addition to the initial construction cost, LCCA takes into account all the user costs, (e.g., reduced capacity at work zones), and agency costs related to future activities, including future periodic maintenance and rehabilitation. (wikipedia.org)
  • Usually the LCCA term implies that environmental costs are not included, whereas the similar Whole-Life Costing, or just Life Cycle Analysis (LCA), generally has a broader scope, including environmental costs. (wikipedia.org)
  • To help building and facility managers make sound decisions, the US Federal Energy Management Program (FEMP) provides guidance and resources on applying LCCA that permits the cost-effectiveness of energy and water efficiency investments to be evaluated (see NIST Handbook 135). (wikipedia.org)
  • Triple Bottom Line Cost Benefit Analysis (TBL-CBA) is an evidenced-based economic method that combines cost benefit analysis (CBA) and life cycle cost analysis (LCCA) across the triple bottom line (TBL) to weigh costs and benefits to project stakeholders. (wikipedia.org)
  • Life cycle cost analysis (LCCA) quantifies all the financial costs of a project alternative. (wikipedia.org)
  • The financial costs in LCCA include upfront capital expenditures, ongoing operations and maintenance costs, replacement costs, and the residual value of assets at the end of the life-cycle. (wikipedia.org)
  • Ratio
  • Some other commonly used measures are Net Savings (or Net Benefits), Savings-to-Investment Ratio (or Savings Benefit-to-Cost Ratio), Internal Rate of Return, and Payback Period. (wbdg.org)
  • Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure (years of life, premature births averted, sight-years gained) and the numerator is the cost associated with the health gain. (wikipedia.org)
  • Assuming an accurate CBA, changing the status quo by implementing the alternative with the lowest cost-benefit ratio can improve Pareto efficiency. (wikipedia.org)
  • The registry reports the value of the ratio reported in the original article, as well as the value calculated directly from the cost and health benefit information in the article. (wikipedia.org)
  • Other metrics (such as the return on investment, internal rate of return, benefit cost ratio, simple payback period, or discounted payback period) can also be used to summarize the CBA results. (wikipedia.org)
  • distinct
  • The calculation of life-cycle costs depends on the choice of a distinct time period (planning time horizon) over which operations and maintenance costs are accrued, discounted (NPV), and compared with cost of capital. (wikipedia.org)
  • CBA is related to (but distinct from) cost-effectiveness analysis. (wikipedia.org)
  • It was posited as an element of benefit distinct from the traditional concept of consumer surplus, and it depended on three factors: (1) uncertainty about future need for the asset, (2) irreversibility or high cost of replacement if the asset is lost, and (3) non-storability of the asset. (wikipedia.org)
  • methodology
  • Today in economically developed countries practically each enterprise or the company use methodology of the kind of functional-cost analysis as a practice of the quality management, most full satisfying to principles of standards of series ISO 9000. (wikipedia.org)
  • willingness to
  • In cost-benefit analysis and social welfare economics, the term option value refers to the value that is placed on private willingness to pay for maintaining or preserving a public asset or service even if there is little or no likelihood of the individual actually ever using it. (wikipedia.org)
  • Cost Benefit Analysis has long incorporated the value of externalities such as the willingness to pay for cleaner water or enhanced transit accessibility, but practitioners have differed on the values used despite efforts by national governments to standardize CBA for policy analysis (for example: Australia, Canada, European Union, and the US). (wikipedia.org)
  • expenses
  • Function Cost Analysis (FСА) (sometimes named function value analysis (FVA)) is the a method of technical and economic research of the systems for purpose to optimize a parity between system's (as product or service) consumer functions or properties (also known as value) and expenses to achieve those functions or properties. (wikipedia.org)
  • The consumer aspires to reduce his expenses (cost or price of functions). (wikipedia.org)
  • The goal of FCA is achievement of the highest consumer satisfaction of production at simultaneous decrease in all kinds of industrial expenses (production costs). (wikipedia.org)
  • According to Ecosystemvaluation.org "The basic premise of the travel cost method is that the time and travel cost expenses that people incur to visit a site represent the "price" of access to the site. (wikipedia.org)
  • Expenses for insurance and freight can also be accounted as material costs. (wikipedia.org)
  • Subcontract costs involve all the expenses connected to subcontracting, that is, the outsourcing of contract obligations to a third party. (wikipedia.org)
  • This process requires an in-depth analysis of the business's expenses. (wikipedia.org)
  • After this step, the cost drivers are being analyzed while the analyzing party (be it the business itself or an external agency) tries to examine possibilities to cut current expenses. (wikipedia.org)
  • ratios
  • A 2006 systematic review found that industry-funded studies often concluded with cost effective ratios below $20,000 per QALY and low quality studies and those conducted outside the US and EU were less likely to be below this threshold. (wikipedia.org)
  • value
  • Building economists, certified value specialists, cost engineers, architects, quantity surveyors, operations researchers, and others might use any or several of these techniques to evaluate a project. (wbdg.org)
  • Classical FCA has three English synonyms - Value Engineering, Value Management, Value Analysis. (wikipedia.org)
  • All the costs are usually discounted and total to a present-day value known as net present value (NPV). (wikipedia.org)
  • There may be incentive for an organization not to develop or publish an analysis that does not demonstrate the value of their product. (wikipedia.org)
  • Businesses can also combine this strategy with a value chain analysis, which allows price forecasts and hence, quicker responses to changes in the market. (wikipedia.org)
  • Social Cost Pricing when Public Transport is an Option Value," Innovation 13 (1): 81-94. (wikipedia.org)
  • calculate
  • Since the constants are sum of costs of some individual items divided by seam constant or by product of seam and machine constants then with standardized cost figures and other data it will be possible to calculate the constants and to get the optimum panel and face lengths. (springer.com)
  • Method
  • 1948 Juryj Sobolev (Соболев, Юрий Михайлович) (Russia) - the first success in application of a method analysis at the "Perm telephone factory" (Perm, Russia). (wikipedia.org)
  • It is not necessary to confuse method FСА as it takes place at some authors, to method Activity-based costing (ABC) Technical system - the set of material elements (components) intended for satisfaction of any need of the person (society) or technical system of higher hierarchical level, possessing even one property leaving for the sum of properties of elements (components) making it. (wikipedia.org)
  • Life cycle cost can be conducted in two approaches: deterministic and probabilistic method. (wikipedia.org)
  • In business economics cost breakdown analysis is a method of cost analysis, which itemizes the cost of a certain product or service into its various components, the so-called cost drivers. (wikipedia.org)
  • The following examples include fictional numbers, lack complexity concerning the cost drivers and are merely used to display the method of cost breakdown analyses. (wikipedia.org)
  • practice
  • This prospective study analyzed the time and costs involved in fabricating implant prostheses in private practice and the factors affecting prosthesis design. (quintpub.com)
  • In more advanced treatments and practice, costs and revenue are nonlinear and the analysis is more complicated, but the intuition afforded by linear CVP remains basic and useful. (wikipedia.org)
  • objectives
  • Accounting separates direct material from indirect material by defining direct material as having only one specific cost objective while indirect material can have multiple cost objectives. (wikipedia.org)
  • Assessment
  • It has been used or cited in analyses performed by the Environmental Protection Agency, the Food and Drug Administration, the Institute of Medicine, and the Medicare Payment Assessment Commission. (wikipedia.org)
  • estimates
  • Such estimates are usually not available until the design is quite advanced and the opportunity for cost-reducing design changes has been missed. (wbdg.org)
  • Visit rate from given zone = f(cost from given zone) VR=a+b.C This curve can then be used to obtain estimates of visit rates given differing levels of total costs. (wikipedia.org)
  • market
  • It is not possible to reduce both projected risk and cost past a certain efficient frontier, since reducing risk tolerance requires limiting market exposure and thus trading faster. (wikipedia.org)
  • In this situation, market impact cost is much greater than for trades that accept greater risk and are executed more slowly. (wikipedia.org)
  • Robert Almgren and Tianhui Li subsequently expanded this to a paper on "Option Hedging with Smooth Market Impact", extending the original analysis to derivative markets. (wikipedia.org)
  • scope
  • The scope of the study included the analysis of costs for existing and planned battery, SMES, and flywheel energy storage systems. (unt.edu)
  • therapeutic
  • Therapeutic equivalence (including adverse reactions, complications and duration of therapy) must be referenced by the author conducting the study and should have been done prior to the cost-minimization work. (wikipedia.org)
  • profits
  • These are simplifying, largely linearizing assumptions, which are often implicitly assumed in elementary discussions of costs and profits. (wikipedia.org)
  • alternative
  • costs are significant when they are large enough to make a credible difference in the LCC of a project alternative. (wbdg.org)
  • The business might find 42% of total costs to be too much for motor fuel and might either want to look for an alternative supplier or change to more fuel efficient trucks. (wikipedia.org)
  • life
  • Life-Cycle Cost Analysis in Pavement Design - In search of Better Investment Decisions" US Department of Transportation - Federal Highway Administration (September, 1998) 123pp. (wikipedia.org)
  • A special case of CEA is cost-utility analysis, where the effects are measured in terms of years of full health lived, using a measure such as quality-adjusted life years or disability-adjusted life years. (wikipedia.org)
  • parameters
  • Pre-trade analysis is the process of taking known parameters of a planned trade and determining an execution strategy that will minimize the cost of transacting for a given level of acceptable risk. (wikipedia.org)
  • example
  • This would be the case, for example, when comparing the cost of renovating an existing facility with new construction on purchased land. (wbdg.org)
  • For example, if the combination of explicit and implicit costs, which represent the realized cost of transacting, is greater than the opportunity cost of not transacting, it suggests that trades may have been executed too quickly. (wikipedia.org)
  • For example, application of a transaction cost model helps split Implementation Shortfall into the parts resulting from the size of the order, volatility, or paying to cover the spread. (wikipedia.org)
  • For simplicity's sake, these random percentages have been assigned to the six cost drivers of transportation this example entails. (wikipedia.org)
  • include
  • And it doesn't matter if the task is 'to catalog a book,' or 'to answer a reference question,' or 'maintain a serial title,' the answer is always, 'It depends on how your library is structured and what you include in the cost factors. (ala.org)
  • Initial costs may include capital investment costs for land acquisition, construction, or renovation and for the equipment needed to operate a facility. (wbdg.org)
  • Material costs include everything that is connected to materials that are purchased by the business, be it raw materials, parts and components, or manufacturing supplies. (wikipedia.org)
  • account
  • It takes into account all costs of acquiring, owning, and disposing of a building or building system. (wbdg.org)
  • total cost
  • Labor costs are direct costs, that is, they can be identified among the total cost and assigned to a certain cost objective. (wikipedia.org)
  • Transportation and corrugated boxes are very illustrative examples as they allow a simple break down of the total cost into the single cost drivers. (wikipedia.org)
  • Guide
  • Guide to Cost Analysis of Acquisitions and Cataloging in Libraries. (ala.org)
  • The purpose of the Guide is to aid the user in arriving at a per unit cost for any acquisitions or cataloging function. (ala.org)
  • Using pertinent budget and production statistics, plus the Guide to Cost Analysis of Acquisitions and Cataloging in Libraries table included in the article, the technical processing manager may arrive at a figure. (ala.org)
  • Step-by-step instructions for using the Guide are included, as well as an extensive list of sample variables to be measured in technical services cost studies. (ala.org)
  • Cost-utility analysis (CUA) is a form of financial analysis used to guide procurement decisions. (wikipedia.org)