BNV7128 Cost Management Sample
Introduction
Recent years have seen a renewed interest in life cycle costing as it relates to infrastructure, and STA is trying to make it more widely available in the context of both infrastructure building and operation (Dwaikat,2018).http://BNV7128 Cost Management Sample
There may be a variety of variables contributing to the increasing need for performance monitoring and inspection of the use and worth of tax funds, as well as the need for more diverse perspectives in decision-making. Each element may be contributing to the overall trend.
Also possible is the perception that investments take precedence over operational and maintenance concerns, despite the fact that these concerns are often disregarded (Karim 2008).http://BNV7128 Cost Management Sample
As a result of this apparent prioritization, it is likely that the burden of operations and maintenance would increase, but the resources available to cope with it will remain same (Karim 2010).http://BNV7128 Cost Management Sample
Background
Generally speaking, the purpose of life cycle costing is to maximize resource efficiency by identifying trade-offs between system performance and the costs of investment, operation, and maintenance.
Despite the fact that life cycle costing seems to be useful in a variety of contexts, the application of life cycle costing in Swedish road planning and design is plagued by a number of difficulties.
A plethora of social and environmental consequences, as well as political issues, accompany the construction of new transportation infrastructure projects, all of which must be addressed in advance of their implementation.
In order to account for the environment, the general public, budget constraints, government regulations, potential dangers, and other factors that influence the investment decision, operating and maintenance costs and life cycle costs account for only a small portion of the total investment decision.
Task 1:cost report
Another factor contributing to the complexity of the planning process is the fact that it is divided into numerous phases, from conception to completion, with various stakeholders each responsible for a piece of the final output, which is a functional road. Another factor contributing to the complexity of the planning process is the fact that it is divided into numerous phases, from conception to completion. Additionally, the procedure is separated into multiple stages, from conception to completion, which adds to its complexity.
Life cycle costs are quite complicated, and it is essential to understand them in order to do life cycle costing accurately.
In terms of life cycle costs, the “2+1 highways” (sparse collision-free motorways) of Sweden provide for an interesting case study to investigate.
Roads that are crash-free were invented in the 1990s in order to attain the same degree of traffic safety as a conventional motorway at a fraction of the cost and time necessary for land acquisition and construction of traditional motorways. The development of collision-free roads began in the 1990s, due to the fact that there are 13 million single-carriageway roads accessible.
Consequently, the incidence of accidents has fallen dramatically since the construction of this new road type, while the overall socioeconomic benefit has grown greatly as a result (Nußholz,2019).http://BNV7128 Cost Management Sample
In recent years, however, it has been shown that the design of the road is associated with an increase in operating and maintenance expenditures.
It may now be feasible to utilize existing 9 m wide roads in order to build rare collision-free zones; however, although this may be less expensive in the short term, it will increase the likelihood of growing operation and maintenance expenses in the long run.
It is predicted that a total road closure and traffic diversions to other routes would be necessary during the reconstruction of this kind of road, costing road users significant difficulty and expense.
Task 2:
It is anticipated that many existing highways will be transformed into this kind of road in the next years, based on current forecasts.
Thus, the question arises: Can the savings realized today be justified by higher maintenance expenses in the future?
If anything like this were to happen, what would be the repercussions for society, transportation, and the people who utilize these services?
It is similarly intriguing whether one considers the issue from the perspective of the life cycle.
Through the use of life cycle costing in the design and construction of Swedish transportation infrastructure, this study examines the long-term implications that new roads will have on operations and maintenance in the years ahead of them.
In order to shed light on a range of methodologies, classifications, and contrasts between different types of research, this thesis will be developed in phases, the first of which will entail doing an investigation into the existing literature in order to throw light on the existing literature. This will be the first stage in the process of putting together a thesis proposal for this project.
Although a short introduction to the technique will be provided in addition to this research, the major purpose of this study is to analyze life cycle costing via the use of case studies in the design and construction of roads and bridges. The research will be conducted in two phases.
Life cycle costing is defined by Banu, (2019), as well as Kori and Ala-Risk (1986), as a flexible technique that can be used in a variety of industries, such as manufacturing and distribution, and is thus widely applicable (2008).http://BNV7128 Cost Management Risk Assessment on BIM Implementation Sample
In order to accommodate changing study participants, it is required to adjust the input data on a regular basis, which involves the collection of a huge quantity of information (Lindholm 2007).http://BNV7128 Cost Management Risk Assessment on BIM Implementation Sample
| Selected Financial Data (US$ in millions) | |||||
| Current assets | 1,61,580 | 1,32,733 | 96,334 | 75,101 | 60,197 |
| Current liabilities | 1,42,266 | 1,26,385 | 87,812 | 68,391 | 57,883 |
| Liquidity Ratio | |||||
| Current ratio | 1.14 | 1.05 | 1.10 | 1.10 | 1.04 |
| Benchmarks | |||||
| Current Ratio, Competitors | |||||
| Booking Holdings Inc. | 2.10 | 3.56 | 1.83 | 2.36 | 2.58 |
| GameStop Corp. | 1.16 | 1.32 | 1.43 | 1.33 | 1.22 |
| Home Depot Inc. | 1.23 | 1.08 | 1.11 | 1.17 | 1.25 |
| Lowe’s Cos. Inc. | 1.19 | 1.01 | 0.98 | 1.06 | 1.00 |
| Target Corp. | 1.03 | 0.89 | 0.83 | 0.95 | 0.94 |
As a result of the limited number of studies that can be done as a result of life cycle cost assessments for individual projects, it is probable that the need to focus on a small number of projects in order to save time and money will be required.
For statistical findings that are more general in nature, it is sometimes required to use a larger sample size and conduct statistical analysis on the data collected from that sample (Yin 1989).http://BNV7128 Cost Management Sample
It is sometimes difficult to make statistically meaningful generalizations from case study research results because of the limited quantity of data that is provided in the study.
If we’re talking about qualitative analysis, case studies allow for more in-depth evaluations of a topic, such as identifying the factors that impact a specific outcome and digging into their descriptions, in addition to establishing the relationships between these factors (Li, 2019).http://BNV7128 Cost Management Sample
Combining case studies with other approaches may help you get a better understanding of a system. Case studies aid in the identification and characterization of significant characteristics and issues, and they can help you gain a better understanding of a system.
In accordance with standard research protocols, hypotheses are developed and tested, after which they are either accepted or rejected based on the results.
On the other hand, case study research is often followed by the formulation of a hypothesis as a result of the inquiry itself.
Utilizing a case study method while doing exploratory research may be quite valuable to your endeavors (Ramesh, 2020).http://BNV7128 Cost Management Sample
Task 3; cost estimation
The researchers were able to identify the relevance of life cycle costs at different phases of a project’s life cycle, as well as the applicability of life cycle costing across these stages, as a result of their use of this technique.
Yin (1989) proposed four elements that should be considered when analyzing the quality of case study research in order to determine whether or not the research was successful.
In the discipline of statistics, construct validity is the term used to describe the selection of acceptable research procedures for the purpose of the present inquiry.
“Internal validity” is a notion that is used to ensure that all connections and inferences inside a single instance are correct.
External validity, on the other hand, assures that the results of a research may be used outside of the context in which they were performed or analyzed, as opposed to internal validity.
A need for analyzing the reliability of case study conclusions and findings is the ability to repeat research outcomes in order to evaluate their trustworthiness.
According to Eisenhardt (1989), a systematic eight-step technique for developing theories from case study research has been devised, and it encompasses the needs that have been defined so far. Preparation is essential before beginning your research. This includes identifying your research area, selecting case studies, and selecting the analytical equipment that will be used to perform your study. If you do not follow these instructions, your study will be deemed unsuccessful.
The investigation will include a big number of individual case studies in addition to a limited number of individual case studies that will be explored, with data collecting and analysis taking place.
Using the results of case studies, it is possible to derive conclusions, which may then be compared to existing literature in order to arrive at an overarching theory.
Following the four quality standards outlined above, a framework for this thesis has been constructed, and it will be finished by a final review before it can be submitted for publication.
It is proposed that a road project now under construction in the Swedish county of sedgeland be transformed from a single lane road into an infrequently utilized, collision-free highway as the primary case study in this research.
There were several variables taken into account while picking this research topic, and it was ultimately decided to be a viable subject for examining how various factors effect the life cycle costs of road infrastructure projects.
On typical collision-free roads, such as those in urban areas, there has recently been an increase in the number of operational and maintenance duties. As a consequence, the number of employment has increased as well, particularly in the construction industry (NVF 2011)
There is major concern about the scarcity of collision-free highways, which is expected to result in a rise of even greater proportions in the expenses of operation and maintenance of vehicles. For this reason, multiple roads are being changed in the near future into collision-free road designs in order to solve this problem.
| Summary | ||||||||||||||
| Project | ||||||||||||||
| Budget | 783004.25 | $ | ||||||||||||
| Actual Spend | 53650.00 | $ | ||||||||||||
| Total Forecast Spend | 788054.25 | $ | ||||||||||||
| S. No. | Item | Quantity Tracking | Budgeted Rate | Cost Tracking | Remarks | |||||||||
| Budget. Qty | Indent | PO Qty | Received | Unit | Budgeted Cost | Actual | Pending | Forecast | Currency | |||||
| 1 | Item1 | 10 | 12 | 10 | 5 | Nos | 2,000.00 | 20000.00 | 18,000.00 | 3600 | 21600.00 | USD | ||
| 2 | Item2 | 1200 | 500 | 200 | 200 | Sq Ft | 150.00 | 180000.00 | 30,400.00 | 152000 | 182400.00 | USD | ||
| 3 | Item3 | 500 | Nos | 50.00 | 25000.00 | 25000 | 25000.00 | USD | ||||||
| 4 | Item4 | 3 | M | 5,500.00 | 16500.00 | 16500 | 16500.00 | USD | ||||||
| 5 | Item5 | 4.5 | M | 3,000.00 | 13500.00 | 13500 | 13500.00 | USD | ||||||
| 6 | Item6 | 18 | 10 | Nos | 6,300.00 | 113400.00 | 113400 | 113400.00 | USD | |||||
| 7 | Item7 | 105 | 50 | 25 | 10 | Kg | 200.00 | 21000.00 | 5,250.00 | 16800 | 22050.00 | USD | ||
| 8 | Item8 | 125.5 | Kg | 33.50 | 4204.25 | 4204.25 | 4204.25 | USD | ||||||
| 9 | Item9 | 60 | Lit | 100.00 | 6000.00 | 6000 | 6000.00 | USD | ||||||
| 10 | Item10 | 100 | Labor Days | 800.00 | 80000.00 | 80000 | 80000.00 | USD | ||||||
| 11 | Item11 | 400 | Labor Days | 750.00 | 300000.00 | 300000 | 300000.00 | USD | ||||||
| 12 | Item12 | 25 | Lit | 90.00 | 2250.00 | 2250 | 2250.00 | USD | ||||||
| 13 | Item13 | 1 | Tons | 450.00 | 450.00 | 450 | 450.00 | USD | ||||||
| 14 | Item14 | 8 | Nos | 65.00 | 520.00 | 520 | 520.00 | USD | ||||||
| 15 | Item15 | 10 | Nos | 18.00 | 180.00 | 180 | 180.00 | USD | ||||||
| Total | 783004.25 | 53,650.00 | 734404.25 | 788054.25 | USD | |||||||||
Every step of development, from its inception to its conclusion, necessitated a range of trade-offs in terms of total cost of ownership, which had to be considered at each point. Here are a few illustrations: (TCO).
Preoccupations centered on everything from opportunities to optimize road design so that the predicted increase in operation and maintenance expenses could be minimized, to opportunities to improve road safety while restricting resource expenditure, and everything in between. Politics played a significant role in the creation of the road type in order to improve road safety while restricting resource expenditure, and opportunities to improve road safety while restricting resource expenditure were discussed.
Even though the case might be analyzed from a number of perspectives, it also allowed for the finding of connections between the many components engaged in it.
A long useful life requires that the LCC and WLC of an asset cover all expenditures associated with the asset’s life cycle. Otherwise, the asset will be considered obsolete.
It may be necessary to do a huge number of complex calculations over an extended period of time in order to establish the overall cost of a big infrastructure project.
When faced with a choice between two or more choices, it is feasible to reduce complexity by simply taking into account the variations in cost between them when using the LCCA technique to each of them (Lee 2002).http://BNV7128 Cost Management Sample
It is necessary to take into account all changes in this component during the research since there is only one component in the system that has to be investigated.
The lowest-cost option may be considered the most cost-effective option in a cost-benefit analysis, provided that all other costs and benefits are the same across the alternatives. This is because it is less expensive than the alternatives.
Summary
The LCCA and LCC/WLC have various scopes of application from one another in order to identify them from one another.
Combined business analysis and capital budgeting (CBA and CB) are often used in combination with one another for project assessments that take into account both profits and costs.
In this perspective, it is feasible to conceive of CBA as a tool for assessing the effectiveness of therapy interventions.
Because of its adaptability, CBA is often employed in public-sector initiatives.
When it comes to public assessments, the emphasis is often placed on the broader consequences for society as opposed to the immediate financial gains for the firm under consideration.
References
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Sadhu khan, J., Gadkari, S., Martinez-Hernandez, E., Ng, K.S., Shembe, M., Torres-Garcia, E. and Lynch, J., 2019. Novel macroalgae (seaweed) biorefinery systems for integrated chemical, protein, salt, nutrient and mineral extractions and environmental protection by green synthesis and life cycle sustainability assessments. Green Chemistry, 21(10), pp.2635-2655.
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