LIFE CYCLE COST BASED ON AS

0 1 2 3 4
2017 2018 2019 2020 2021

Capital 60,000 0 0 0 0
Cost of Travelling in ₹ (per year) 21,900 21,900 21,900 21,960 21,900
Servicing Charges in ₹ (per year) 2,000 2,000 2,000 2,000 2,000
Insurance Cost in ₹ (per year) 1,000 1,000 1,000 1,000 1,000
Cost of Maintenance and Spares in ₹ (per year) 1,000 1,200 1,400 1,600 1,800
Breakdown Cost in ₹ (Once every 5 years) 0 0 0 0 10,000
Insurance Claim in ₹ (Once every 5 years) 0 0 0 0 -8,000

NOTE : THE AMOUNTS FOR INSURANCE CLAIM ARE TAKE

% COMPONENTS OF LIFE CYCLE COST FOR 20 YEARS % Com

Capital 60000
9.
Travelling cost 438300 3.20%
Servicing Charges 40000
6.41%
Insurance Cost 20000
Cost of Maintenance and Spares 58000
Breakdown Cost + Insurance Claim 8,000
 ENGINEERING AND MANAGERIAL ECONOMICS

ASSIGNMENT NO. 1 :- LIFE CYCLE COST (LCC)

LIFE CYCLE COST BASED ON ASSUMPTIONS IN DATA 1 - WITHOUT PETROL-SAVING KIT

YEAR
5 6 7 8 9 10 11 12 13 14
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

0 0 0 0 0 0 0 0 0 0
21,900 21,900 21,960 21,900 21,900 21,900 21,960 21,900 21,900 21,900
2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800
0 0 0 0 10,000 0 0 0 0 10,000
0 0 0 0 -8,000 0 0 0 0 -8,000

INSURANCE CLAIM ARE TAKEN AS NEGATIVE BECAUSE THE CUSTOMER WILL BE AWARDED THE SAME

% Components for Life Cycle Cost for 20 years

1.28%
9.29% 9.61%

3.20%
Capi ta l
6.41% Travel l i ng cost
Servi ci ng Cha rges
Ins ura nce Cost
Cost of Mai ntenance a nd
Spa res
Brea kdown Cost + Insura nce
Cl ai m

70.21%
 15 16 17 18 19 TOTAL
2032 2033 2034 2035 2036

0 0 0 0 0 60,000
21,960 21,900 21,900 21,900 21,960 4,38,300
2,000 2,000 2,000 2,000 2,000 40,000
1,000 1,000 1,000 1,000 1,000 20,000
4,000 4,200 4,400 4,600 4,800 58,000
0 0 0 0 10,000 40,000
0 0 0 0 -8,000 -32,000

LIFE CYCLE COST FOR 20 YEARS = 6,24,300