How to Develop a Maintenance Decision Model Based On Life Cycle Costing & Kpi's

Reliability Solutions
How to Develop a Maintenance Decision Model Based On Life Cycle Costing & Kpi's • Operation Managers • Maintenance Managers • Supervisors • Continuous Improvement – Business Process Manager • Reliability and maintenance engineers

On a daily basis people need to take decision within the scope of the maintenance department in order to realize the required uptime. Unfortunately decisions are frequently taken without the necessary quantitative supporting data. In order to address the requirements of senior and financial management the use of Life Cycle Costing (LCC) & Key Performance Indicators (KPI’s) is necessary. This course gives you a template to develop a decision model based on the total life cycle of the assets under investigation. A correct understanding of the different financial ratio’s such ROI, NPV, IRR etc will help you presenting improvement initiatives towards senior management.

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Content

You will learn:

  • Understand the method of Life Cycle Costing (LCC) or Total Cost of ownership (TCo)
  • Understand the difference between LCC and standard cost calculations
  • Understand the difference between leading lagging indicators
  • Understand indicators such as 'Net Present Value’ (NPV), Internal Rate of Return' (IRR), Return on Investment (ROI), Payback period
  • How to build comparison tables to evaluate “make or buy” decisions
  • How to build decision models
  • Introduction to Monte Carlo simulation
  • Most common used indicators within the field of maintenance and asset management
  • Illustration of existing standards such as EFNMS and SMRP

COURSE DURATION:

2 days

AVAILABLE LANGUAGES:

  • English
  • Dutch