Research On Equipment Life Cycle Cost And Application

Equipment Life Cycle Cost(LCC) is very important for the control of the products'cost and to improve the competitive ability of the company. This paper did further research on manufacturing, purchasing, maintaining and renewing, which influence the Equipment Life Cycle Cost most. The cost breakdown structure, the forecast algorithm and Life Cycle Costing are the emphases. By investigating two kinds of large equipment produced by Jiangsu Jianqiao Decoration and Painting Co.,Ltd and Jinagsu Haiyuan Technical Group, the theory of LCC was put into practice with considering the equipment's characteristics.The main work is as follows:Firstly, the principles and approaches of cost breakdown were studied, and the relationship of cost elements and LCC modeling were referred. The model of purchasing and maintaining, reliability and design cost were built. Two kinds of cost breakdown structure and the ways of calculation were studied, which were applied on the High Speed Texturing Machine and the Paiting and Decorarion Equipment.Secondly, some kinds of forecast algorithm of LCC are studied, and the Trends Extrapolation and Grey System are the emphases, which were applied and programmed.Thirdly, Life Cycle Costing was further researched, including static and dynamic ways, and many kinds of criterion of Life Cycle Cost were concluded, which were applied on equipment purchasing and renewing.Finally, by systematic requirement analysis and further research on Life Cycle Cost theory, the software for LCC decision-making was designed and developed. In this way, the efficiency and accuracy of Life Cycle Costing are greatly improved, and the management is much easier.