Upload
kenneth-small
View
218
Download
0
Tags:
Embed Size (px)
Citation preview
Content
• Definition of WLC
• The 3 Elements of Sustainability
• Where Does WLC Fit In?
• Why Should Clients Care?
• Why Should You Care?
• What We Need To Do?
• Where WLCF Can Help?
Definition of WLC
Whole Life Cost is the analysis of all relevant and identifiable
financial cashflows regarding the acquisition and use of an asset.
Where Does WLC Fit In
• Next Step in Continuous Improvement
• First Step in Sustainability
• May Already be Doing It (Sort Of)
• Easily Understood
• Financial and Operational Gains
Whole Life Cost Ratios Capital Cost Cost in Use Business Costs
1 : 5 : 200Source.: "The long term costs of owning and using buildings" –
published by The Royal Academy of Engineering (November 1998).
Capital Cost Cost in Use Cost to Business 1 : 5 : 200
-100k : +£500k : +£20m
WLC – The Big Picture
BuildBuild
2 Years2 Years
DesignDesign
1 Year1 Year
£17%
£3%
OperateOperate
25 Years25 Years
Run / Maintain£ 40%
Repair£ 30%
PeriodicReplacement / Refurbish
£ 10%
TotalTotal
TotalTotal
DisposeDispose
1 Year1 Year
100%
Cost ofOwnership
£?%£
?%
Source Gardiner & Theobald
WLC Rules of ThumbTypical Airport Terminal
Revenue80%
Capital20%
Typical Shopping Centre
Revenue55%
Capital45%
Typical Office Block
Capital40%
Revenue60%
Revenue Cost Breakdown
• EnergyEnergy
• CleaningCleaning
• MaintenanceMaintenance
• Admin ServicesAdmin Services
• SecuritySecurity
• Admin and Management Admin and Management InsuranceInsurance
7%10%
20%
27%
31%
5%
Why Should Clients Care?
• Compulsion– Climate Change Levy– Carbon Trading– PFI Conditions– Funding
• Concern for Environment
• Curiosity
• Competitive Advantage
• Profit
Why Should You Care?
• Leading Role in Industry
• Understand New Concepts
• Concern for Environment
• Competitive Advantage
• Profit
What We Need To Do
• Adopt Performance Specification
• Consider the Costs in Use for Asset Selection
• Take Small Steps - Progress Slowly
• Understand What You Have Achieved
• Benchmark
Where WLCF Can Help
• The web based WLC Comparator Tool
• Common Data Structures• Common Calculation
Methodologies• Access to Database • Optioneering• Benchmarking• Credibility• Accreditation • Help - You Are Not Alone