Authors : C. Mark Eti , C.Ogbuefi Uche and D.S.J. Atas
Abstract: In today’s cost conscience business world, understanding the complete cost of a technology-based business solution is as critical as selecting the right technology platforms. Life Cycle Costs (LCC) is a process to determine the sum of all the costs associated with an asset or part thereof, including acquisition, installation, operation, maintenance, refurbishing and disposal costs. This study gives a guide to LCC analysis for pumping system in Ogorode steam power station. Station management only considers the initial purchase and installation cost of a system. Hence, it is the objective of this paper to stress the need to evaluate the LCC of carrying out a major and equipments or carrying out a major overhaul. By evaluation two pumps A, B, the most financially attractive alternative was identified. Hence, it is better to consider all relevant costs to determine the LCC and optimize preventive maintenance during early stages of acquisition of an asset. NPV was used to arrived at a practical application and selection of the two pumps.
C. Mark Eti , C.Ogbuefi Uche and D.S.J. Atas , 2007. Pump Life Cycle Cost, its Application in Ogorode Steam Electric Power Station . Research Journal of Applied Sciences, 2: 424-430.