Lifecycle · The lifecycle cost model · Element
The running cost
What the asset consumes per period once in service.
The part
What it is
Maintenance, consumables, energy, licensing, support and the staff time required to keep it working.
Running cost usually rises with age, which is what makes replacement timing an economic question rather than an engineering one.
The smallest level
The attributes it carries
Each attribute is one of the framework’s shared types. What a date is, and how it is written, is defined once for the whole model — the note here says what it means in this particular place.
Annual escalation
How fast it rises, which sets the economic replacement point.
Percentage shared type
The other elements in the lifecycle cost model
The acquisition cost
Everything spent to get the asset working.
LearnThe end cost
What it costs to stop using the asset, net of anything recovered.
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