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Whole life asset management-Costs - Coggle Diagram
Whole life asset management-Costs
Inclusion of all costs
Operating costs
Maintenance costs
Installation and commissioning costs
Performance/downtime monitoring
Aquisition costs
End of life disposal
Pre-acquisition costs
Analysis of historic performance
Identification of needs/specification
Whole life asset management- 8 elements
Commisioning
(installation, training, insurance, testing)
Deterioration/ maintenance
(how long will it last, at what rate will it deteriorate, can it be reduced?) i.e use of machinery less and only when necessary as opposed to daily
Construction
Condition performance monitoring
Reactive
Preventive
Do nothing
Predictive
Proactive
Procurement
Decomissioning
Identify need/objective/risk
Renewal/replacement
Departmental involvement in whole life management ( for larger purchases)
Operations
i.e can it be easily operated?costs associated with training
Sales
i.e does it make sales quicker, easier and better quality?
Research and design i
.e benefits in can generate for the organisation in term of productivity and efficiency
Human resources
i.e. training required, how often,skill set required
Finance
i.e tax implications, lease or buy, insurance costs
Procurement
i.e total cost of acquisition,stakeholder's view on the asset, environmental impact
Marketing
i.e can it be promoted to customers.
Maintenance
i.e how easily can it be maintained, how will disposal occur and at what cost
Hidden costs
Global sourcing
Time differences
Post contract reviews
i.e using skype to link the global supply chain. However internet connection might not be as good, so meetings take longer, costing more
Language barriers
Transition/mobilisation
i.e if the contract has been placed overseas for the first time ,lots of checks to be done by an agent which comes at a
cost
Cultural differences i.e masculine/feminine. Hofstede's Cultural Dimensions Model
Internal overheads i
.e travel expenses, researching suppliers, agent fees
Ethical behaviour i.e in some countries bribery is a standard part of doing business
Reputation
Exchange rates
Logistics
