Gain Insight From the Data Analysis and Reap the Benefits
Industry experts attribute a whopping 70 percent of an asset’s lifetime costs to energy and maintenance expenses. That data lends new urgency to the importance of life cycle cost analysis.
Calculating life cycle cost helps you minimize waste and streamline operations. When it comes to facility management, those calculations are essential to identifying the most efficient and cost-savings approach to operations and maintenance. On the flipside, overlooking life cycle cost analyses brings risks of lost productivity, emergency repairs or replacement, downtime, not to mention safety.
Life cycle cost analysis takes into account expenses such as:
- Acquisition and procurement
- Fuel and energy
- Operations
- Maintenance
- Capital-replacement
- Loans and financing
- Construction
- Repairs
- Restoration
- Rehabilitation
- Updates and modernization
This multi-layered approach might sound complicated—which is a significant reason why building managers and owners tend to avoid it. But partnering with a trusted industry expert can make all the difference. A professional with true expertise in facility management will generate a more accurate analysis that accounts for line items like the time and costs associated with transporting and installing new equipment.
You’ll not only get a data-informed analysis that will save you time, money, and energy, you’ll learn aspects of life cycle valuation that will inform future decision-making well beyond the property or project at hand.
Other benefits of life cycle cost analysis include:
- A better-informed, long-term maintenance schedule that makes the most of employees’ and technicians’ time as well as avoids peak operating periods.
- Accurate repair budgets to inform capital and strategic planning.
- Timely budgeting for water and utilities that accounts for rate of usage and consumption.
- More precise guidance around stocking replacement parts, tools, and equipment.
- Strategies for conserving energy and reducing related costs.
Perhaps most importantly, turning to life cycle cost analysis allows you to prioritize safety, stay in compliance, stay ahead of problems and repairs, which will have a positive impact on every owner, resident, customer and visitor.