Life cycle

iStock_000001095558SmallFinance everything - not just acquisitions

A life cycle usually consists of four phases: Planning – acquisition – maintenance – phasing out/replacement.

For the company to achieve its objectives, it is important to include and act correctly in all four phases.

Costs often follow the so-called "bathtub curve". A curve that is high at the beginning and the end of an asset's service life indicates the proportion of problems and defects in the phasing in and at the end of its service life.

Knowledge of life cycle costs and a complete list of the equipment used is a prerequisite in optimising the use of your assets.

The frequency of defects on technical equipment/technology is described in the usual way using a "bathtub curve". Production defects give a high, but rapidly decreasing defect rate of new equipment/technology. Testing by the manufacturer contributes to the defect rate being lower before purchase. After each year, where the equipment gets older, the frequency of defects and breakdowns increases.

Lighthouse Finance uses the ICE program in our management solutions.

Please contact Lighthouse Finance for more information on how we can help you.