8/10/2019 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 and

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 siteEquipment 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 equipmentLabour 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 tracksCost 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

8/10/2019 Lifecycle Cost Tool

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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.

Contact iSolutions regarding our professional asset management solutions

Disclaimer:

www.isipl.com Copyright © 2007 iSolutions International P

iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Co st Calculator Spreadsheet. In no event shall iSolutions be liable to any party for any indirect, incidental, consequen

8/10/2019 Lifecycle Cost Tool

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Equipment Description: 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:

www.isipl.com Copyright © 2007 iSolutions International Pty Ltd

Generic Dump Truck

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 Co st 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.