Why You Need Practical Reliability Details To Define Life Cycle Costs For Your Products and Competitors Products

摘要

High-grade products, are difficult to sell because of price resistance―particularly when the high-grade products have much longer life and require less maintenance than lower grade products. Life cycle costs comparisons help decide the lowest long-term cost of ownership driven by a single estimator called net present value. The initial low sales price item usually forms a datum for procurement decisions, and the higher sales price item must be compared over the entire life of the project. The net present values require decisions about when and how much maintenance/replacement costs will be incurred which is driven by the time and modes for component failures found by using reliability technology developed during the past 60 years.