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Asset management programs for water and wastewater treatment plants typically focus on a wide range of business and engineering optimization techniques to meet their level of service (LOS) goals while minimizing risk and optimizing cost savings. A great deal of optimization can be achieved through integrating capital, operations and maintenance (O&M), and repair and replacement (R&R) decisions. One technique to integrate the various decisions and optimize costs is through a critical life cycle cost analysis (LCCA). Once life cycle analyses have been completed, a decision framework can be established to develop “what if” analyses to determine the optimal scenario for implementation.

A critical LCCA integrates LOS and risk goals and evaluates not only the costs incurred by the asset over its lifetime, but condition, criticality, vulnerability, risk, remaining useful life, and anticipated repair costs as well. The results of the analysis can be used to prioritize assets and projects, as well as the on-going development of the capital improvement program, the annual budgeting process, and other financial analyses. Additionally, the critical life cycle cost methodology allows agencies to understand all the costs and components associated with each asset. The schedule and timing of O&M, R&R, and capital improvements are critical to minimizing these costs and accomplishing the overall life cycle planning strategy.

Document Type: Research Article


Publication date: 2004-01-01

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