IEC 60300-3-3:2017 establishes a general introduction to the concept of life cycle costing and covers all applications. Although costs incurred over the life cycle consist of many contributing elements, this document particularly highlights the costs associated with the dependability of an item. This forms part of an overall dependability management programme as described in IEC 60300-1. Guidance is provided on life cycle costing for use by managers, engineers, finance staff, and contractors; it is also intended to assist those who may be required to specify and commission such activities when undertaken by others. This third edition cancels and replaces the second edition published in 2004. This edition constitutes a technical revision. This edition includes the following significant technical changes with respect to the previous edition: – addition of a complete analysis process; – greater reference to international accounting practices; – increased discussion of financial concepts.

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PDF Pages	PDF Title
1	compares BS EN 60300-3-3:2017
2	TRACKED CHANGES Text example 1 — indicates added text (in green)
95	National foreword
99	English CONTENTS
102	FOREWORD
104	INTRODUCTION
105	1 Scope 2 Normative references 3 Terms, definitions and abbreviated terms 3.1 Terms and definitions
108	3.2 Abbreviated terms 4 Concepts of life cycle costing 4.1 Objectives of life cycle costing
109	4.2 Application of life cycle costing
110	4.3 Factors influencing LCC 4.4 Factors related to dependability
111	5 Life cycle costing process 5.1 General 5.2 Establish the organizational context 5.2.1 Formulate the context
112	Figures Figure 1 – Life cycle costing process
113	5.2.2 Identify alternatives 5.3 Plan the analysis 5.3.1 Define scope and objectives of the analysis 5.3.2 Define analysis tasks and identify contributing personnel
114	5.3.3 Identify constraints 5.3.4 Identify relevant financial parameters
115	5.4 Define the analysis approach 5.4.1 Establish rules/methodology 5.4.2 Select or develop an LCC model
116	5.4.3 Define the cost breakdown structure Figure 2 – Cost breakdown structure concept
117	5.4.4 Identify areas of uncertainty
118	5.5 Perform the analysis 5.5.1 Establish methods for estimating cost elements 5.5.2 Collect cost data
119	5.5.3 Aggregate cost per item for each stage or time period 5.5.4 Perform LCC and sensitivity analysis 5.5.5 Review analysis 5.5.6 Assess achievement of analysis objectives
120	6 Finalize the analysis 6.1 Identify follow-up actions 6.2 Document analysis
121	Annex A (informative) Life cycle costing and the life cycle A.1 General
122	A.2 Typical LCC analyses A.3 Committed versus actual costs Figure A.1 – Typical analyses across the life cycle
123	Figure A.2 – Example of committed and actual costs
124	Annex B (informative) Financial concepts B.1 General B.2 Consequential costs
125	B.3 Warranty costs B.4 Liability costs
126	B.5 Opportunity costs, discounting, inflation and taxation B.5.1 General B.5.2 Opportunity costs B.5.3 Taxation B.5.4 Exchange rate B.5.5 Generally accepted accounting principles
127	Annex C (informative) Application of financial evaluation techniques C.1 General C.2 Discounted cash flow (DCF) C.3 Internal rate of return (IRR) C.4 Depreciation and amortization C.5 Cost-benefit analysis
128	C.6 Time value of money
129	Annex D (informative) Cost breakdown structures by life cycle stage D.1 General D.2 Life cycle stage cost element D.2.1 General D.2.2 Concept D.2.3 Development
130	D.2.4 Realization D.2.5 Utilization
131	D.2.6 Enhancement D.2.7 Retirement D.3 Cost element explanation D.3.1 General
132	D.3.2 Project management D.3.3 Engineering D.3.4 Producibility engineering and planning D.3.5 Manufacturing D.3.6 Facilities D.3.7 Support and test equipment D.3.8 Initial training D.3.9 Initial spares and repair parts D.3.10 Consumables D.3.11 Contractor services
133	Annex E (informative) Evaluating intangibles E.1 General E.2 Intangibles
134	E.3 Valuing methods
135	Annex F (informative) Methods for estimating cost elements F.1 General F.2 Parametric cost method Figure F.1 – Potential sources of costs
136	Figure F.2 – Example of cost elements used in a parametric cost analysis
137	F.3 Analogous cost method F.4 Engineering cost method
139	Annex G (informative) Example of LCC comparison G.1 General G.2 Simple example of LCC comparison G.2.1 General G.2.2 Configuration option 1 G.2.3 Configuration option 2 G.2.4 Configuration option 3
140	G.2.5 Configuration option 4 G.2.6 LCC calculation Table G.1 – Summary of LCC comparison
141	Bibliography

Published By	Publication Date	Number of Pages
BSI	2020	143


PDF Format	Searchable	Printable	Preview Now

Status	Definitive
Pages	143
Publication Date	2020-02-25
ISBN	978 0 539 08925 7
Standard Number	BS EN 60300-3-3:2017 – TC
Title	Tracked Changes. Dependability management – Application guide. Life cycle costing
Descriptors	Life (durability), Terotechnology, Assessed reliability, Management, Cost accounting, Product design, Life cycle, Accounting, Reliability, Quality assurance systems
Publisher	BSI
Committee	DS/1
ICS Codes	03.100.40 - Research and development

BS EN 60300-3-3:2017 – TC:2020 Edition

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