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ISolutions Lifecycle Cost Tool
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Understanding the life cycle cost of owning and maintaining assets is important to ensure good asset management. The life cycle cost for equipment should include all costs related to owning
running equipment. It should take into account the cost of loans, operator, depreciation, servicing, major repairs, minor repairs, fuel consumption, insurance and wear items.
To assit you to estimate the life cycle cost of your equipment, iSolutions has provided this free Equipment Life Cycle Cost Calculator.
The Equipment Life Cycle Cost Calculator breaks equipment costs into four broad categories. Ownership, Maintenance, Consumables and Operator.
You should enter your own costs (or those provided by your equipment supplier) in the cells provided to calculate the life cycle owning and operating cost.
This spreadsheet can them be used to evaluate equipment purchase options, or assist you to calculate the budget cost for using your equipment.
Parameters
Purchase Price: Purchase price of the equipment including any options, commissioning costs and transport to site
Equipment Life in Hours: The life of the equipment in operating hours after which the equipment will be sold or scrapped
Residual Value (%): The sale or scrap value as a percentage of purchase price at the end of the equipment's life
Interest Rate (%): The annual interest rateor cost of capital
Annual Usage: The annual usage of the asset in hours
Insurance %: The annual insurance cost as a percentage of purchase price
Annual Major Cost: The annul cost of major reqairs to the equipment
Annual Servicing Cost: The annual cost of servicing the equipment
Labour to Hours Ratio: The number of labour hours required to maintain the equipment as a ratio to operating hours
Labour Rate per Hour: The hourly cost of maintenance labour
Unassigned Cost Ratio: The cost of unassigned or miscellaneous costs as a percentage of maintenance costs
Fuel Cost (Litre): The cost of fuel per litre
Fuel Consumption (L/hr): The hourly fuel consumption
Cost of Tyres / Tracks: The cost of tyres or tracks
Life of Tyres / Tracks: The life of tyres or tracks
Cost of Bucket / Blade / Body: The cost to overhaul the bucket, blade or body
Life of Bucket / Blade / Body: The number of hours between overhauls of the bucket, blade or body
Calculator Information
Calculator Information
About iSolutions
iSolutions is an innovative asset management and maintenance software and services provider. We specialise in life cycle costing and maintenance contract management.
We have solutions for small, medium and large business.
Disclaimer:
Copyright © 2007 iSolutions International Pty Ltd
Contact iSolutions regarding our professional asset management solutions
www.isipl.com
iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Cost Calculator Spreadsheet. In no event shall iSolutions be liable to any party for any indirect, incidental, consequential, or special damages, including without limitation, lost revenues or profits.
Understanding the life cycle cost of owning and maintaining assets is important to ensure good asset management. The life cycle cost for equipment should include all costs related to owning
Equipment Description: Generic Dump Truck Ownership Cost per Hour Total Cost per Hour
Depreciation 36.43 Ownership 53.53
Input Table Interest 13.80 Maintenance 85.69
Purchase Price 1,200,000 Insurance 3.30 Consumables 39.19
Equipment Life in Hours 28,000 Total Ownership 53.53 Operator 55.00
Residual Value (%) 15% Total Hourly Cost 233.41
Interest Rate (%) 8% Maintenance Cost per Hour
Annual Usage 4,000 Major Components 36.25 Life Cycle Cost Breakdown
Insurance % 1.10% Service and Repair 20.00
Annual Major Cost 145,000 Labour 21.00
Annual Servicing Cost 80,000 Unassigned Cost 8.44
Labour to Hours Ratio 0.35 Total Maintenance 85.69
Labour Rate per Hour 60.00
Unassigned Cost Ratio 15% Consumables
Fuel Cost (Litre) 1.00 Fuel 28.00 Maintenance Cost Breakdown
Fuel Consumption (L/hr) 28 Tyres / Tracks 8.44
Cost of Tyres / Tracks 38,000 Bucket / Blade / Body 2.75
Life of Tyres / Tracks 4,500 Total Consumables 39.19
Cost of Bucket / Blade / Body 55,000
Life of Bucket / Blade / Body 20,000 Operator
Operator Cost per Hour 55.00 Operator 55.00
Disclaimer:
Major Components
Service and Repair
Labour
Unassigned Cost
Ownership
Maintenance
Consumables
Operator
Equipment Life Cycle Cost Calculator
iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Cost Calculator Spreadsheet. In no event shall iSolutions be liable to any party for any indirect, incidental, consequential, or special damages, including without limitation, lost revenues or profits.
Major Components
Service and Repair
Labour
Unassigned Cost
iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Cost Calculator Spreadsheet. In no event shall iSolutions be liable to any party for any indirect, incidental, consequential, or special damages, including without limitation, lost revenues or profits.
