1

Cost
analysis
goal

Constraints
and
alternatives

Cost
breakdown
structures

Critical
cost
parameter,
models
and
methods

Cost
items
(initial,
etc.)

Life cycle
cost
profile

Calculation
of all LCC
alternatives

Sensitivity
analysis

FEEDBACK
Selection of
best
alternatives

LCC

Initial
acquisition
costs
Electricity, water,
air, & etc.

Operating
costs

Operating manpower
1

Operating
profile

Utilisation
factors

Maintenance
cost

CM labours

PM labours

Critical cost
parameters

Calculate cost
at current
prices

Parts

Overhaul
costs

CM : Corrective maintenance
PM : Preventive maintenance

Initial spare
costs

Labours
Parts

Escalate
current costs

Discount costs to
base period

Sum up all costs

LCC