LIFE CYCLE COSTING FOR BATTERY SYSTEMS

Life Cycle Costing (LCC) is a method used to determine the total cost of ownership of an individual item or the component of a system and it is a structured approach which looks at all the components of this cost and can produce a spend profile of the product over its expected life-span.

The results of an LCC analysis can be used by management to assist in the decision-making process and it is most valuable as a comparative tool between different options.

The fundamental core of Life Cycle Costing is that the visible costs of any purchase represent only a small proportion of the total cost of ownership and in performing a Life Cycle Cost to calculate the total cost of battery ownership, instead of simply considering only the initial purchase price of the battery, it is necessary to include all the costs accrued during the system lifetime.

The four main factors affecting life cycle cost are:

Initial Cost: including battery cost, costs for stands/cubicles, connectors, addition costs for installation room, administration costs, and delivery/storage costs.

Lifetime: which may be calendar lifetime or the lifetime relating to the cycle life required by the system and provided by the technology. Something with a good calendar life may not be suitable for a cycling application.

Temperature: high temperatures have a large impact on lifetime and water consumption. Low temperatures have an impact on performance which can increase the required battery capacity and hence affect the initial cost..

Maintenance Cost: including regular maintenance, water replenishment, testing, downtime costs and all costs for relevant engineers including training and transport.

 View our presentation on the fundamentals of Life Cycle Costing.
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A successful life cycle costing is not simple and requires significant accurate input and calculation.

We have some useful information which you may download or request and if you require assistance in generating a life cycle costing analysis involving our batteries, please do not hesitate to contact us.

For more information on LIFE CYCLE COSTING FOR BATTERY SYSTEMS talk to Industrial Batteries (UK) Limited