Whether you are talking about thermal power plants, hydropower plants, nuclear power plants or wind farms, the energy industry is characterised by large investments and long operational phases. This also presents a common problem within the industry. One of the costs, the initial investment, is often clear. The second, the operational costs over the whole life cycle, are considerably more difficult to determine in the early stages.
Creating a comprehensive view of the whole life cycle and the opportunity to direct the power plant towards the lowest possible total costs, while fulfilling the reliability specifications, requires a systematic method. This method is called Life Cycle Management, LCM. In brief, LCM involves maximising the utility of the power plant by using a systematic life cycle perspective throughout the plant’s life cycle. LCM also entails ensuring the plant’s profitability by making the right decisions from the start. An important step in the process is to design and ensure the right plant maintainability and dependability at an early stage. The sooner an improvement measure is implemented, the greater its positive impact.
Systecon has the expertise, the methodology, and the tools to develop the right information to support the overall business at every stage of the life cycle of a technical system. This results in more cost effective operations and increased profitability.
Our LCM model is based on three phases:
The design phase presents different conceptual solutions with varying reliability specifications, etc. Early LCM analysis reveals the cost impact of — for instance — higher versus lower reliability, and develops the necessary information for selecting a concept for both the technical system and the associated maintenance solution.
Procurement and construction
Using LCM, procurement is carried out with a focus on Life Cycle Cost (LCC) and Life Cycle Profit (LCP). This creates contract transparency and clear specifications. Choosing the right system and the right products is important, as is defining the right supplier commitments. This allows us to create the right conditions for building an efficient maintenance organisation with the right resources.
The model that was developed in the early phases of the project should be adjusted if the original assumptions change. It is not unusual that data developed in the early phases varies from the data obtained through experience in the operational phase. At this stage, the LCM model is an excellent tool for identifying cost drivers and evaluating the profitability of potential modifications.