ReliabilityBased LifeCycle Economic Analysis Dr Bill Wessels PE

Reliability-Based Life-Cycle Economic Analysis Dr Bill Wessels, PE CRE Principal Research Scientist UAH Research Institute Reliability & Failure Analysis Lab

Part Alternatives Ø Five Vendors offer part that meets or exceeds reliability requirements Ø Acquisition Costs § § § A - $6, 064 B - $3, 803 C - $5, 398 D - $6, 919 E - $4, 376 Dr Bill Wessels PE CRE 2

Part Failure – Maintenance Cycle Dr Bill Wessels PE CRE 3

Labor Allocation & Costs/hr – Part Alpha Dr Bill Wessels PE CRE 4

Labor Allocation & Costs/hr – Parts Beta & Charlie Dr Bill Wessels PE CRE 5

Labor Allocation & Costs/hr – Parts Delta & Echo Dr Bill Wessels PE CRE 6

Overhead Costs Dr Bill Wessels PE CRE 7

Deterministic Part Alternatives Dr Bill Wessels PE CRE 8

Part A Baseline Simulation Dr Bill Wessels PE CRE 9

Part B Baseline Simulation Dr Bill Wessels PE CRE 10

Part C Baseline Simulation Dr Bill Wessels PE CRE 11

Part D Baseline Simulation Dr Bill Wessels PE CRE 12

Part E Baseline Simulation Dr Bill Wessels PE CRE 13

Tests of Hypotheses for Means Dr Bill Wessels PE CRE 14

Costs Table – Part Alpha Dr Bill Wessels PE CRE 15

Costs Table – Part Beta Costs Table – Part Charlie Dr Bill Wessels PE CRE 16

Costs Table – Part Delta Costs Table – Part Echo Dr Bill Wessels PE CRE 17

Engineering Economic Analysis Ø rd = APR Øn = q Ø m = CP/yr Ø i = rd/m Ø A = uniform cost per hr Ø PV[A] = PV(i, n, A) Ø F = S [Costs at n] Ø PV[F]= PV(i, n, _, F) Ø NPV = PV[A] + PV[F] Ø AEquiv = PMT(i, n, NPV) Dr Bill Wessels PE CRE 18

Part A Life-Cycle Economic Analysis Dr Bill Wessels PE CRE 19

Part Alternatives Life-Cycle Economic Analyses Dr Bill Wessels PE CRE 20

Dr Bill Wessels PE CRE 21

Part Alternatives Economic Ranking Dr Bill Wessels PE CRE 22