Life-cycle cost and economic analysis

목차 (Table of Contents)

• CONTENTS
• PREFACE = xiii
• Part Ⅰ Concepts and Theory
• 1 SYSTEM LIFE-CYCLE CONCEPTS
• 1.1. Planning for Economic Competitiveness = 1
• Engineering and Economic Competitiveness = 1
• The Consumer-to-Consumer Process = 2
• Designing for the Life Cycle = 3
• Systems Engineering and Analysis = 5
• 1.2. The System Life-Cycle Process = 6
• Definition of System Requirements = 8
• Design and Development = 9
• Production and/or Construction = 10
• Utilization and Support = 11
• Phaseout, Retirement, and Disposal = 11
• 1.3. Cost Commitment over the Life Cycle = 12
• 1.4. Life-Cycle Economic Analysis = 12
• Questions and Problems = 14
• 2 ECONOMIC AND COST CONCEPTS = 15
• 2.1. The Value and Utility of Goods = 15
• Value and Utility Defined = 15
• Utility of Consumer Goods = 16
• Utility of Producer Goods = 17
• 2.2. Economic Inputs and Outputs = 17
• The Production Process = 17
• Economic Outputs = 18
• Economic Inputs = 18
• 2.3. Some Classifications of Cost = 21
• First or Investment Cost = 22
• Operation and Maintenance Cost = 22
• Fixed and Variable Cost = 23
• Incremental or Marginal Cost = 24
• Direct and Indirect Cost = 24
• Total and Unit Cost = 26
• Recurring and Nonrecurring Cost = 27
• Sunk or Past Cost = 27
• 2.4. The Cost Breakdown Structure = 28
• 2.5. The Time Value of Money = 30
• 2.6. The Earning Power of Money = 31
• 2.7. The Purchasing Power of Money = 32
• Questions and Problems = 32
• 3 INTEREST FORMULAS AND EQUIVALENCE = 34
• 3.1. Interest and Economic Equivalence = 34
• Interest and Interest Rate = 35
• Simple and Compound Interest = 35
• Compounding Frequency Considerations = 37
• Economic Equivalence = 38
• Money Flow Diagrams = 39
• 3.2. Interest Formula Derivations = 41
• Annual Compounding Formulas = 41
• More-Frequent Compounding = 49
• Continuous Compounding Formulas = 50
• Summary of Interest Formulas = 53
• 3.3. Equivalence of Money Flows 53
• Present Equivalent Amount = 53
• Annual Equivalent Amount = 56
• Future Equivalent Amount = 56
• Internal Rate of Return = 57
• Payback or Payout Period = 58
• Annual Equivalent Asset Cost = 60
• 3.4. Inflation and Equivalence = 62
• Measures of Inflation and Deflation = 62
• Actual and Constant Dollar Analysis = 66
• Geometric Gradient Inflation Analysis = 71
• Questions and Problems = 73
• 4 ALTERNATIVES AND DECISION MAKING = 77
• 4.1. Elements of Decision Criteria = 77
• Differences between Alternatives = 77
• Minimum Attractive Rate of Return = 78
• The Do-Nothing Alternative = 79
• 4.2. Types of Proposals = 79
• Independent Proposals = 79
• Dependent Proposals = 80
• Essential Proposals = 81
• 4.3. Forming Mutually Exclusive Alternatives = 81
• 4.4. Comparisons Based on Total Investment = 85
• Present Equivalent on Total Investment = 85
• Annual and Future Equivalent on Total Investment = 85
• 4.5. Present Equivalent on Incremental Investment = 86
• 4.6. Rate of Return on Incremental Investment = 88
• 4.7. Alternatives with Unequal Lives = 89
• Questions and Problems = 90
• 5 DECISION EVALUATION THEORY = 95
• 5.1. Evaluation by Economic Equivalence = 95
• 5.2. The Economic Optimization Function = 97
• 5.3. The Decision Evaluation Matrix = 98
• 5.4. Decisions under Certainty = 100
• 5.5. Decisions under Risk = 102
• Aspiration-Level Criterion = 104
• Most-Probable-Future Criterion = 104
• Expected-Value Criterion = 105
• Comparison of Decisions = 105
• 5.6. Decisions under Uncertainty = 106
• Laplace Criterion = 106
• Maximin and Maximax Criteria = 107
• Hurwicz Criterion = 108
• Minimax Regret Criterion = 109
• Comparison of Decisions = 111
• 5.7. Decisions Involving Multiple Criteria = 111
• Decision Evaluation Display = 111
• Cost-Effectiveness Analysis = 112
• A Cost-Effectiveness Example = 115
• Questions and Problems = 117
• Part Ⅱ Methodology and Applications = 122
• 6 LIFE-CYCLE COSTING METHODOLOGY = 122
• 6.1. The Life-Cycle Costing Situation = 122
• 6.2. Cost Generated over the Life Cycle = 125
• Actions Affecting Life-Cycle Cost = 125
• Conceptual System Design = 126
• Preliminary System Design = 128
• Detail Design and Development = 129
• Production, Utilization, and Support = 129
• 6.3. Life-Cycle Cost Analysis = 130
• Cost-Analysis Goals = 130
• Analysis Guidelines and Constraints = 131
• Identification of Alternatives = 132
• Developing the Cost Breakdown Structure = 132
• Selecting a Cost Model = 134
• 6.4. Cost Treatment over the Life Cycle = 136
• Developing the Cost Profile = 136
• Incorporating Inflationary Factors = 137
• Considering Learning Effects = 140
• Determining Cost Equivalence = 141
• 6.5. Design to Cost = 141
• Questions and Problems = 143
• 7 ESTIMATING COST AND ECONOMIC ELEMENTS = 144
• 7.1. Cost Estimating Methods = 144
• Estimating by Engineering Procedures = 145
• Estimating by Analogy = 146
• Parametric Estimating Methods = 147
• Application of Estimating Methods = 147
• 7.2. Developing Cost Data = 148
• Cost Data Requirements = 149
• Sources of Cost Data = 149
• 7.3. Adjustment of Cost Data = 152
• Cost Data Categories = 152
• Price-Level Changes = 153
• Improvements Due to Learning = 156
• 7.4. Cost Estimating Relationships = 159
• Parametric Estimating Functions = 159
• Some Examples of CER's = 162
• 7.5. Estimating Manufacturing Cost = 165
• 7.6. Accounting Data in Estimating = 169
• Effect of Activity-Level Changes = 169
• Inadequacy of Average Costs = 170
• 7.7. Judgment in Estimating = 171
• Questions and Problems = 171
• 8 EVALUATING ERRORS IN ESTIMATING = 174
• 8.1. A Decision Based on Estimates = 174
• Cost Saving Estimate = 175
• Capital Recovery with Return Estimate = 175
• Operation and Maintenance Cost Estimate = 175
• 8.2. Allowing for Errors in Estimates = 176
• Allowing for Error by High Interest Rates = 176
• Allowing for Error by Rapid Payout = 177
• 8.3. Considering a Range of Estimates = 178
• 8.4. Sensitivity Analysis = 180
• Sensitivity Involving a Single Alternative = 180
• Sensitivity Involving Multiple Alternatives = 184
• 8.5. Monte Carlo Analysis = 186
• Questions and Problems = 190
• 9 LIFE-CYCLE ECONOMIC EVALUATIONS = 194
• 9.1. Cost Evaluation of Two Alternatives = 194
• Evaluating Equipment Purchase Alternatives = 195
• Evaluating Equipment Design Alternatives = 198
• 9.2. Cost Evaluation of Multiple Alternatives = 201
• The Analysis Approach = 202
• Analysis of Results = 204
• 9.3. Profitability Evaluation of Alternatives = 206
• The Analysis Approach = 207
• Analysis of Results = 208
• 9.4. Evaluating System Design Alternatives = 212
• 9.5. Break-Even Evaluation of Alternatives = 218
• Break-Even Analysis under Certainty = 218
• Break-Even Analysis under Risk = 225
• 9.6. Evaluating Alternatives with Multiple Futures = 226
• Questions and Problems = 228
• 10 LIFE-CYCLE OPTIMIZATION OF ALTERNATIVES = 235
• 10.1. Optimizing Investment or First Cost = 235
• Bridge Design Evaluation Model = 236
• Single Design Alternative = 238
• Multiple Design Alternatives = 239
• 10.2. Optimizing Life-Cycle Cost = 240
• Bridge Evaluation Including Maintenance = 240
• Conductor Design Evaluation Model = 242
• Single Design Alternative = 245
• Multiple Design Alternatives = 245
• Design Decision Reversal = 246
• 10.3. Optimum Equipment Life = 248
• Equipment Life Evaluation by Mathematical Approach = 248
• Equipment Life Evaluation by Tabular Approach = 250
• Questions and Problems = 253
• 11 LIFE-CYCLE COST IN PROGRAM EVALUATION = 257
• 11.1. Program Requirements and Planning = 257
• Setting Cost Requirements = 258
• Program Planning = 258
• 11.2. Organization for Life-Cycle Costing = 262
• 11.3. Program Review and Control = 263
• 11.4. Consumer/Producer/Supplier Interfaces = 264
• 11.5. Contractual Implications = 266
• 11.6. Managerial Implications = 269
• Questions and Problems = 271
• Part Ⅲ Case Studies = 272
• 12 COMMUNICATION SYSTEM PROCUREMENT = 272
• 12.1. Case Study Introduction = 272
• Communication System Objectives = 274
• Performance and Effectiveness Requirements = 276
• 12.2. The Analysis Approach = 276
• 12.3. Life-Cycle Cost Analysis = 279
• Development of the Cost Breakdown Structure = 279
• Generation of Input Cost Data = 280
• 12.4. Evaluation of Alternatives = 302
• 12.5. Sensitivity Analysis = 307
• 12.6. Case Study Summary = 308
• 13 REPAIRABLE EQUIPMENT SYSTEM DESIGN = 310
• 13.1. Case Study Introduction = 310
• The Operational System = 311
• Scope and Assumptions = 312
• System Design Evaluation = 313
• 13.2. Evaluation Function Formulation = 313
• Annual Equivalent Population Cost = 314
• Annual Operating Cost = 315
• Annual Repair Facility Cost = 315
• Annual Shortage Penalty Cost = 315
• 13.3. System Design Problem Ⅰ = 318
• Annual Equivalent Population Cost = 319
• Annual Operating Cost = 319
• Annual Repair Facility Cost = 319
• Annual Shortage Cost Penalty = 319
• 13.4. System Design Problem Ⅱ = 322
• Considering Design Requirements = 323
• Generating Candidate Systems = 324
• 13.5. Case Study Summary = 325
• Part Ⅳ Appendices = 326
• A LIFE-CYCLE COST ANALYSIS PROCESS = 326
• B COST BREAKDOWN STRUCTURE = 332
• C SELECTED DEFINITIONS AND FORMULAS = 353
• D INTEREST FACTOR TABLES = 359
• E SELECTED REFERENCES = 374
• INDEX = 377