Course Description
This course gives you an introduction to lifecycle costing including the key terms and concepts you need to know.
It shows you how to develop costing for the three main stages in the lifecycle of an asset, including replace vs repair, product/solution options or cost savings initiatives. Techniques for estimating and for inflating current costs over the life of an asset are explained, enabling you to develop the necessary cash flows.
With a the cash flows established, the course shows how to calculate the present value of all future cashflows and then calculate NPV and IRR. You will learn the formulas to do it manually and how to do it easily using excel spreadsheets and built-in formulas. A sample spreadsheet is provided for download.
Finally, it shows you how to assess the results and how to do variance analysis.
Course Goal
Enable you to do lifecycle costing to provide key financial information for decision making and for your business cases so you can gain approval for your initiatives and projects.
This course will provide you with an understand of what lifecycle costing is, how to do it easily and how to use the results so that you can gain credibility within your organization for financial acumen and strategic decision making.
Learning Outcomes
- Learn what life cycle costing is.
- Discover the key things you use life cycle costing for.
- Understand how to gather and establish the life cycle costs.
- Find out how to use an Excel spreadsheet to do life cycle costing calculations
- Gain insight into the analysis necessary for decision making.
Course format
The course is split into lessons and topics so you can proceed at your own pace and even in different order. For instance if you want to review the practical excel simulation first before going back and learning the theory.
The course includes the following techniques to present information and help you learn.:
- Text
- Short Videos
- Software Simulation (using Excel)
- Interactions
- Quizzes to test your knowledge
- Final test to confirm your knowledge
- Certificate of Achievement
