APM Life Cycle Costing Awesome Guide With 100% Correct Verified Answers.

Life Cycle Costing (LCC) - correct answers The total cost of ownership of a product, structure, or system over its useful life 4 Stages of LCC - correct answers Acquisition Operations Service Disposal Which stage accounts for 40-60% of the total cost and decisions made in this stage affect 100% of the LCC? - correct answers Acquisition Cost Estimating Relationship (CER) - correct answers A function representation of the cost components in terms of the decision variables. They are utilized to analyze the expected effect of changing any of the decision variables on one or more of the cost components. Two principles of uncertainty that LCC model builders should consider - correct answers Uncertainty regarding the activities Uncertainty regarding the expected cost of these activities Sources of cost uncertainty - correct answers Inflation rates, expected efficiency and utilization of resources, the failure rate of the system components. Tolerance of costs uncertainty is -30% to +50% Classification of Cost Components - correct answers1. Conceptual Design Phase 2. Advanced Development and Detailed Design Phase 3. Production Phase 4. Operating and Maintaining the System 5. Divest and Disposal Conceptual Design Phase - correct answers Feasibility studies, configuration analysis and selection, systems engineering, initial logistics analysis, initial design. Cost increase with the degree of innovation involved Advanced Development and Detailed Design Phase - correct answers Product and process design, preparation of final performance requirements, preparation of the WBS, schedule and budget, preparation of resource management plan. Production Phase - correct answers Construction of new facilities or remodeling of the existing facilities, cost of equipment, labor, materials and documentations. In many projects it is the highest cost phase Cost of operating and maintaining the system - correct answers Cost of operations and maintenance personnel, energy costs, spare parts, transportation costs, inventory management costs, design changes, upgrade costs Divestment and Disposal Phase - correct answers Parts and sub-assemblies must be inventoried, sold for scrap or discarded Methods of Classifying Costs - correct answers Life Cycle Manufacturing and Accounting Approach Time the cost is realized (all cost items incurred in the same period are grouped together) Pareto (ABC) Analysis - correct answers Used to identity the most important cost components Three groups: A: Small percentage of the top cost components (10-15%) which account for roughly 60% or more of the total cost B: All cost components that are not members of A or C C: Large percentage of the bottom cost components (50%) which account for 10% or less of the total cost Cost of new design size - correct answers C=Cr * (Qc