Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case
A physical asset’s health is the consequence of a series of factors, ranging from the characteristics of the location where it operates to the care it is submitted to. These characteristics can influence the durability or the horizon of the useful life of any equipment, as well as determine its oper...
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-10-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/8/10/1787 |
| _version_ | 1827704264390082560 |
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| author | Orlando Durán Fabián Orellana Pablo Perez Tamara Hidalgo |
| author_facet | Orlando Durán Fabián Orellana Pablo Perez Tamara Hidalgo |
| author_sort | Orlando Durán |
| collection | DOAJ |
| description | A physical asset’s health is the consequence of a series of factors, ranging from the characteristics of the location where it operates to the care it is submitted to. These characteristics can influence the durability or the horizon of the useful life of any equipment, as well as determine its operational performance and its failure rates in the future. Therefore, the assessment of the influence of asset health on Life Cycle Costs is a compelling need. This paper proposes the incorporation of a factor that reflects the projected behavior of an asset’s health index into its corresponding Life Cycle Costing (LCC) model. This allows cost estimates to be made more realistic and LCC models to be operated more accurately. As a way of validating this proposal, a case study is shown. The methodology proposed in this case study was applied in a real case, considering an LNG facility located in central Chile. In addition, sensitivity studies and comparisons with the results obtained by a traditional Life Cycle Costing model are included. The results show the usefulness of incorporating asset health aspects into the Life Cycle Costing of physical assets. |
| first_indexed | 2024-03-10T15:36:14Z |
| format | Article |
| id | doaj.art-3967411eca86433bbb10a358946fb58c |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T15:36:14Z |
| publishDate | 2020-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-3967411eca86433bbb10a358946fb58c2023-11-20T17:11:46ZengMDPI AGMathematics2227-73902020-10-01810178710.3390/math8101787Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study CaseOrlando Durán0Fabián Orellana1Pablo Perez2Tamara Hidalgo3Mechanical Engineering School, Pontificia Universidad Católica de Valparaíso, Valparaiso 243000, ChileGNL Quintero, Las Condes, Santiago 2490000, ChileMechanical Engineering School, Pontificia Universidad Católica de Valparaíso, Valparaiso 243000, ChileMechanical Engineering School, Pontificia Universidad Católica de Valparaíso, Valparaiso 243000, ChileA physical asset’s health is the consequence of a series of factors, ranging from the characteristics of the location where it operates to the care it is submitted to. These characteristics can influence the durability or the horizon of the useful life of any equipment, as well as determine its operational performance and its failure rates in the future. Therefore, the assessment of the influence of asset health on Life Cycle Costs is a compelling need. This paper proposes the incorporation of a factor that reflects the projected behavior of an asset’s health index into its corresponding Life Cycle Costing (LCC) model. This allows cost estimates to be made more realistic and LCC models to be operated more accurately. As a way of validating this proposal, a case study is shown. The methodology proposed in this case study was applied in a real case, considering an LNG facility located in central Chile. In addition, sensitivity studies and comparisons with the results obtained by a traditional Life Cycle Costing model are included. The results show the usefulness of incorporating asset health aspects into the Life Cycle Costing of physical assets.https://www.mdpi.com/2227-7390/8/10/1787assets healthLife Cycle Costingreliability |
| spellingShingle | Orlando Durán Fabián Orellana Pablo Perez Tamara Hidalgo Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case Mathematics assets health Life Cycle Costing reliability |
| title | Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case |
| title_full | Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case |
| title_fullStr | Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case |
| title_full_unstemmed | Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case |
| title_short | Incorporating an Asset Health Index into a Life Cycle Costing: A Proposition and Study Case |
| title_sort | incorporating an asset health index into a life cycle costing a proposition and study case |
| topic | assets health Life Cycle Costing reliability |
| url | https://www.mdpi.com/2227-7390/8/10/1787 |
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