Abstract
The purpose of the previous chapters was to provide tools that can be used to predict the future performance of engineering systems. This is important since the economic and functional feasibility of large engineering projects depends mostly on their operation and management through time. In this chapter, we discuss the concept of life-cycle analysis, a modern project evaluation paradigm for assessing the impacts (e.g., environmental, economic) of a product (e.g., engineering project) or service from “cradle to grave.” Up to Chap. 8 we focused on existing mathematical models to describe system degradation and the alternatives to derive lifetime distributions. In this and the following chapters, we will use these models within the context of life-cycle analysis. In the first part of the chapter, we discuss in some detail the problem of life-cycle analysis and describe all aspects involved in the evaluation. In the second part, we focus on the problem of defining optimum design parameters for systems with long lifetimes. Some of the concepts developed in this chapter will be used also in Chap. 10 to define maintenance strategies.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
By a “mechanical” we mean a problem that can be fully described by physical laws.
- 2.
Note that based on the following Laplace transform property \(F_1^*(\mathbf{p},\gamma )=f_1^*(\mathbf{p},\gamma )/\gamma \), the form of the benefit for an infinite lifetime can be derived as follows [18]:
$$\begin{aligned} B(\mathbf {p},\gamma )=\int _0^{\infty }b(\tau )\delta (\tau )(1-F_1(\mathbf {p},\tau ))d\tau =b\int _0^{\infty }\exp (-\gamma t)-F_1(\mathbf {p},\tau )\exp (-\gamma t)d\tau \nonumber =\frac{b}{\gamma }(1-f_1^*(\mathbf {p},\gamma )). \end{aligned}$$
References
Tellus Institute, CSG/Tellus Packaging Study: inventory of material and energy use and air and water emissions from the production of packaging materials. Technical Report (89-024/2) (prepared for the Council of State Governments and the United States Environmental Protecion Agency). Jellus Institute, Boston, MA, 1992
US Environmental Protection Agency (EPA), Life-cycle assessment: principles and practice. US Environmental Protection Agency, EPA/600/R-06/060, Cincinnati, 2006
J.C. Bare, P. Hofstetter, D.W. Pennington, H.A. Udo de Haes, Midpoints versus endpoints: the sacrifices and benefits. Int. J. Life-cycle Assess. 5(6), 319–326 (2000)
J.E. Padgett, C. Tapia, Sustainability of natural hazard risk mitigation: a life-cycle analysis of environmental indicators for bridge infrastructure. J. Infrastruct. Syst., ASCE (2013)
C. Tapia, J.E. Padgett, Multi-objective optimisation of bridge retrofit and post-event repair selection to enhance sustainability. Structure and Infrastructure Engineering: Maintenance, Management, Life-Cycle Design and Performance, page doi:10.1080/15732479.2014.995676 (2015)
K.F. Sieglinde, R.P. Stephen, NIST Handbook 135: Life Cycle Costing Manual for the Federal Energy Management Program (U.S. Government Printing Office, Washington, 1995)
A.J. Dell’Isola, S.J. Kirk, Life Cycle Cost Data (McGraw Hill, New York, 1983)
American Society for Testing and (ASTM), Materials. Standard Practice for Measuring Life-cycle Costs of Buildings and Building Systems (ASTM, Philadelphia, 1994)
New South Wales Treasury, Total Asset Management: Life Cycle Costing Guideline. TAM-2004; New South Wales Treasury, New South Wales, 2004
SAE International, Reliability, Maintainability, and Supportability Guidebook, 3rd edn. RMS Committee (SAE International, 1995)
SAE International, Reliability and Maintainability Guideline for Manufacturing Machinery and Equipment, 3rd edn. SAE (SAE International, 1999)
A.S. Goodman, M. Hastak, Infrastructure Planning Handbook: Planning Engineering and Economics (ASCE Press, New York, 2006)
S.J. Kirk, A.J. Dell’Isola, Life-Cycle Costing for Design Professionals (McGraw Hill, New York, 1995)
D. Paez-Pérez, M. Sánchez-Silva, A dynamic principal-agent framework for modeling the performance of infrastructure. Eur. J. Oper. Res (2016). In Press
D. Paez-Pérez, M. Sánchez-Silva, Modeling the complexity of performance of infrastructure (2016). Under review
M. Sánchez-Silva, D. Rosowsky, Risk, reliability and sustainability in the developing world. ICE Struct.: Spec. Issue Struct. Sustain. 161(4), 189–198 (2008)
UN. Brundland Commission, Our common future. UN World Commission on Environment and Development (1987)
R. Rackwitz, Optimization and risk acceptability based on the life quality index. Struct. Saf. 24, 297–331 (2002)
R. Rackwitz, Optimization—the basis of code making and reliability verification. Struct. Saf. 22(1), 27–60 (2000)
Y.K. Wen, Y.J. Kang, Minimum building lifecycle cost design criteria. i: methodology. J. Struct. Eng., ASC 127(3), 330–337 (2001)
D. Val, M. Stewart, Decision analysis for deteriorating structures. Reliab. Eng. Syst. Saf. 87, 377–385 (2005)
J. Von Neummann, O. Morgenstern, Theory of Games and Economic Behavior, 3rd edn. (Princeton University Press, Princeton, 1953)
J.S. Nathwani, M.D. Pandey, N.C. Lind, Engineering Decisions for Life Quality: How Safe is Safe Enough? (Springer, London, 2009)
J. Zhuang, Z. Liang, T. Lin, F. De Guzman, Theory and practice in the choice of social discount rate for cost-benefit analysis: a survey. Asian Development Bank—Series on Economic Working Papers, ERD 94:1–50 (2007)
F. Ramsey, A mathematical theory of saving. Econ. J. 38, 543–549 (1928)
L. Young, Determining the discount rate for government projects. Working paper, New Zealand Treasury (2002)
A. Harberger, Project Evaluation: Collected Papers (The University of Chicago Press, Chicago, 1972)
S. Frederick, Valuing future life and future lives: a framework for understanding discounting. J. Econ. Psychol. 27, 667–680 (2006)
R. Rackwitz, A. Lentz, M.H. Faber, Socio-economically sustainable civil engineering infrastructures by optimization. Struct. Saf. 27, 187–229 (2005)
R. Rackwitz, The philosophy behind the Life Quality Index and empirical verification. Joint Committee of Structural Safety (JCSS)-Basic Documents on Risk Assessment in Engineering: Document N4, DTU—Denmark (2008)
E. Paté-Cornell, Discounting in risk analysis: capital versus human safety, in Risk, Structural Engineering and Human Error, ed. by M. Grigoriu (University of Waterloo Press, Waterloo, 1984)
P.O. Johansson, Is there a meaningful definition of the value of statistical life? Health Econ. 20, 131–139 (2001)
S. Bayer, D. Cansier, Intergenerational discounting: a new approach. J. Int. Plan. Lit. 14(3), 301–325 (1999)
R.B. Corotis, Public versus private discounting for life-cycle cost, in Proceedings of the International Conference on Structural Safety and Reliability ICOSSAR’05, ed. by G. Augusti, G.I. Schueller, M. Ciampoli. Millress Rotterdam the Netherlands, August (2005)
S. Bayer, Intergenerational discounting: a new approach. Tubinger Diskussionsbeitrag 145, 1–26 (1998)
D. Nishijima, K. Straub, M.H. Faber, Inter-generational distribution of the life-cycle cost of an engineering facility. J. Reliab. Struct. Mater. 3(1), 33–46 (2007)
S.E. Chang, M. Shinozuka, Life-cycle cost analysis with natural hazard risk. ASCE-J. Infrastruct. Syst. 2(3), 118126 (1996)
D.M. Neves, L.C. Frangopol, P.J.S. Cruz, Cost of reliability improvement and deterioration delay of maintained structures. Comput. Struct. 82(13–14), 1077–1089 (2004)
L. Ochoa, M. Hendrickson, H.S. Matthews, Economic input-output life-cycle assessment of us residential buildings. J. Infrastruct. Syst. 8, 132–138 (2002)
Y. Itoh, T. Kitagawa, Using co\(_2\) emission quantities in bridge lifecycle analysis. Eng. Struct. 25, 565–577 (2003)
ISO, Structural Reliability: Statistical Learning Perspectives. International Organisation of Standardisation, Geneva (2000)
IISI, World Steel Life-cycle Inventory—methodology report. International Iron and Steel Institute, Committee on Environmental Affairs, Brussels (2002)
M. Nisbet, M. Marceau, M. VanGeem, Environmental Life Cycle Inventory of Portland Cement Concrete (Portland Cement Association, Stokie, 2002)
H. Gervasio, L.S. da Silva, Comparative life-cycle analysis of steel-concrete composite bridges. Struct. Infrastruct. Eng. 4, 251–269 (2008)
E.J. Mishan, Evaluation of life and limb: a theoretical approach. J. Polit. Econ. 79(4), 687–705 (1971)
R. Zeckhauser, Procedures for valuing lives. Public Policy 23(4), 419–464 (1975)
W.B. Arthur, The economics of risk to life. Am. Econ. Rev. 71(1), 54–64 (1980)
M.D. Pandey, J.S. Nathwani, Life quality index for the estimation of societalwillingness-to-pay for safety. Struct. Saf. 26, 181–199 (2004)
A.J. Krupnick, A. Alberini, M. Cropper, N. Simon, B. O’Brien, R. et al. Goeree, Age, health and willingness to pay for mortality risk reduction. Discussion paper, resources for future, DP00-37, Washington (2000)
J.K. Hammitt, Valuing changes in mortality risk: lives saved versus life years saved. Rev. Env. Econ. Policy 1, 228–240 (2007)
J.E. Aldy, W.K. Viscusi, Age differences in the value of statistical life: revealed preference evidence. Rev. Environ. Econ. Policy 1, 241–260 (2001)
J.K. Hammitt, Valuing mortality risk: theory and practice. Environ. Sci. Technol. 34, 1396–1400 (2007)
K. Fischer, M. Virguez-Rodriguez, M. Sánchez-Silva, M.H. Faber, On the assessment of marginal life saving costs for risk acceptance criteria. Struct. Saf. 44, 37–46 (2013)
R. Rackwitz, The effect of discounting, different mortality reduction schemes and predictive cohort life tables on risk acceptability criteria. Reliab. Eng. Syst. Saf. 91, 469–484 (2006)
M.D. Pandey, J.S. Nathwani, N.C. Lind, The derivation and calibration of the life quality index (LQI) from economical principles. Struct. Saf. 28, 341–360 (2006)
J. Nathwani, N. Lind, M. Pandey, Affordable safety by choice: the life quality method. Institute for Risk Research. University of Waterloo, Waterloo (1997)
T.O. Tengs, M.E. Adams, J.S. Pliskin, D.G. Safran, J.E. Siegel, M.C. Weinstein, Five-hundred life-saving interventions and their cost-effectiveness. Risk Anal. 15(3), 369–390 (1995)
O. Ditlevsen, Life quality index revisited. Struct. Saf. 26, 443–451 (2004)
O. Ditlevsen, P. Friis-Hansen, Life quality allocation indexan equilibrium economy consistent version of the current life quality index. Struct. Saf. 27, 262–275 (2005)
Organisation for Economic Co-operation & Development (OECD). Statistics database, OECD. http://www.oecd.org (2011)
M.H. Faber, E. Virguez-Rodriguez, Supporting decisions on global health and life safety investments, in 11th International Conference on Applications of Statistics and Probability in Civil Engineering, ICASP11, Balkema, August (2011)
Organisation for Economic Co-operation & Development (OECD). Employment outlook, OECD. http://www.oecd.org (2011)
N. Keyfitz, Applied Mathematical Demography (Springer, New York, 1985)
O. Spackova, D. Straub, Cost-benefit analysis for optimization of risk protection under budget constraints. Risk Anal. 35(5), 941–959 (2015)
E. Rosemblueth, E. Mendoza, Optimization in isostatic structures. J. Eng. Mech., ASCE, (EM6):1625–42 (1971)
E. Rosemblueth, Optimum design for infrequent disturbances. Structural Division, ASCE, 102- ST9:1807–1825 (1976)
A.M. Hasofer, Design for infrequent overloads. Earthq. Eng. Struct. Dyn. 2(4), 387–388 (1974)
J.D. Campbell, A.K.S. Jardine, J. McGlynn, Asset Management Excellence: Optimizing Equipment Life-cycle Decisions (CRC Press, Florida, 2011)
M. Sánchez-Silva, R. Rackwitz, Implications of the high quality index in the design of optimum structures to withstand earthquakes. J. Struct., ASCE 130(6), 969–977 (2004)
Y.K. Wen, Y.J. Kang, Minimum building lifecycle cost design criteria. II: applications. J. Struct. Eng., ASCE, 127(3), 338–346 (2001)
I. Iervolino, M. Giorgio, E. Chioccarelli, Gamma degradation models for earthquake-resistant structures. Struct. Saf. 45, 48–58 (2013)
A. Petcherdchoo, J.S. Kong, D.M. Frangopol, L.C. Neves, NLCADS (New Life-Cycle Analysis of Deteriorating Structures) User’s manual; a program to analyze the effects of multiple actions on reliability and condition profiles of groups of deteriorating structures. Engineering and Structural Mechanics Research Series No. CU/SR-04/3, Department of Civil, Environmental, and Architectural Engineering, University of Colorado, Boulder Co (2004)
D.M. Frangopol, M.J. Kallen, M. van Noortwijk, Probabilistic models for life-cycle performance of deteriorating structures: review and future directions. Program. Struct. Eng. Mater. 6(4), 197–212 (2004)
D.M. Frangopol, D. Saydam, S. Kim, Maintenance, management, life-cycle design and performance of structures and infrastructures: a brief review. Struct. Infrastruct. Eng. 8(1), 1–25 (2012)
RCP, COMREL-V8.0. RCP, http://www.strurel.de/comrel.htm (2012)
R.E. Barlow, F. Proschan, Mathematical Theory of Reliability (Wiley, New York, 1965)
E.E. Lewis, Introduction to Reliability Engineering (Wiley, New York, 1994)
K.W. Lee, Handbook on Reliability Engineering (Springer, London, 2003)
D.R. Cox, Renewal Theory (Metheun, London, 1962)
Y.K. Wen, Structural Load Modeling and Combination for Performance and Safety Evaluation (Elsevier Science, New York, 1990)
R.E. Melchers, Structural Reliability-Analysis and Prediction (Ellis Horwood, Chichester, 1999)
A. Haldar, S. Mahadevan, Probability, Reliability and Statistical Methods in Engineering Design (Wiley, New York, 2000)
U.K. Legislation, Health and safety at work Act 1974 (1974)
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Sánchez-Silva, M., Klutke, GA. (2016). Life-Cycle Cost Modeling and Optimization. In: Reliability and Life-Cycle Analysis of Deteriorating Systems. Springer Series in Reliability Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-20946-3_9
Download citation
DOI: https://doi.org/10.1007/978-3-319-20946-3_9
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-20945-6
Online ISBN: 978-3-319-20946-3
eBook Packages: EngineeringEngineering (R0)