ISO 15663-1:2000 pdf download

ISO 15663-1:2000 pdf download.Petroleum and natural gas industries —Life cycle costing 一 Part 1: Methodology.
Step 1 shall never be omitted, either initially or in subsequent iterations. However, in later iterations its scope can be reduced to a check by the user that the initial task outcomes are still applicable.
The following paragraphs give a description of each of the tasks in Step 1 and practical guidance for the user on how they can be implemented in terms of the discussions that should be held, the questions that should be asked and the outputs that should be produced. Although each task is discussed separately, in reality the discussions that will take place will cover many of the tasks simultaneously.
NOTE This task is the starting point for any life-cycle costing work and will lead naturally into the other tasks in this step. It is not the responsibility of the coordinator to set the objectives for the overall work programme, but the coordinator should translate them into specific life-cycle cost objectives.
4.1.2 Identify objectives
4.1.2.1 The objectives shall be agreed and documented in accordance with project procedures prior to the commencement of the study. The functions, systems equipment or project execution strategies being examined shall be recorded.
NOTE In subsequent iterations of the procedure, this task may be limited to reconfirmation. However, it may be found that the life-cycle costing work changes the overall objective. Taking, as an example, maintenance cost optimization, the first iteration may show that downtime (lost production) is the cost driver, not maintenance costs.
4.1.2.2 The overall objectives shall be discussed with all those identified as having responsibility for life-cycle costing, particularly the manager responsible for the overall work, to ensure they have a full understanding of what needs to be achieved. Potential participants include the following disciplines:
— design and engineering; procurement and contracts;
— health, safety and environment;
— reliability engineering; estimating;
— construction;
— installation and commissioning; operations and maintenance; economics and budgeting; finance and cost accounting.
Discipline participants may come from vendor, contractor or operator organizations depending on project requirements.
NOTE Early scoping studies may not require the involvement of vendors/contractors, however any life-cycle costing evaluation, from concept selection on, may benefit from their involvement.
4.1.3 Identify constraints
The constraints which apply to the options being considered shall be identified. These arise from the following three principal sources:
— project constraints on what can be achieved within the life-cycle cost work. These arise from resource and time-scale limitations on the work;
technical constraints which limit the options available;
— budgetary constraints, such as limitations on CAPEX, or alternatively the outcome may be subject to specified economic criteria, e.g. an option must achieve an IRR of 10 % before it merits further consideration.
All constraints that will impact on the life-cycle cost assessment shall be formally recorded.
4.1.4 Establish decision criteria
4.1.4.1 Decision criteria shall be agreed in accordance with asset requirements and recorded. The decision criteria shall define the mechanism by which the options will be ranked and compared.
4.1.4.2 A range of criteria may be defined, including measures such as:
NPV;
— life-cycle cost;
—P1;
IRR;
— payback period.
NOTE Further information on appropriate criteria is included in ISO 15663-2 [1].
4.1.4.3 For the ranking of options, measures such as NPV or life-cycle cost need not be calculated in full but limited to estimation of differences. Independent of the measure, the differences between options should be considered under the following headings:
— CAPEX;
operating expenditure; revenue impact; disposal.
4.1.4.4 In applying these criteria, consideration shall be given to the need and ability to compare options on a like-for-like basis. This problem is most likely to occur when two options with different life expectancies are being compared. In these circumstances, alternative techniques, such as the use of equivalent annual costs, need to be agreed with the asset owner.
The user should also remember that the decision criteria are used not only to rank the options, but also to provide the basis for determining the cost drivers within an option — this has implications on the modelling required.
4.1.5 Identify potential options
4.1.5.1 A disciplined and structured approach to the identification of options shall be adopted.
NOTE Identifying and establishing options are normally split into two tasks, to prevent an evaluation of the options as they arise. The aim is to encourage speculation — evaluation will obstruct this process.
4.1.5.2 A multidisciplinary team shall identify options and sub-options for the function under review.
NOTE 1 Many techniques are available to identify options. Reference is made to ISO 15663-2 [1], in which several techniques to identify and establish options are detailed.