• Korean Journal of Construction Engineering and Management
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• v.16 no.4
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• pp.70-79
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• 2015

With the rise of the interest in a renewable system, the importance of the Life Cycle Cost Analysis(LCCA), an economic evaluation tool, has been increasing. However, there is an inevitable gap between a real cost and an estimation from LCCA because of the uncertainty of the external environment in real world. As the input variables in an analysis, such as a real discount rate and an energy cost, ares subject to change as time goes by, strategic decision on the current operating system is made depending on the real cost. Current economic evaluation approaches have treated only the fluctuation of input variables without consideration of the flexibility in operation, which has consequently led to the impairment on the reliability of LCCA. Therefore, new approach needs to be proposed to consider both the uncertainty of input variables and operational flexibility. To address this issue, the application of the Real Option to LCCA is presented in this study. Through a case analysis of LCCA of a solar heating system, the limits and current status of LCCA are identified. As a result, quantitative presentation of strategic decisions has been added in the new approach to implement the traditional approach.

• Journal of Korea Society of Digital Industry and Information Management
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• v.6 no.1
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• pp.55-67
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• 2010

Decision problem called an optimal release policies, after testing a software system in development phase and transfer it to the user, is studied. The applied model of release time exploited infinite non-homogeneous Poisson process. This infinite non-homogeneous Poisson process is a model which reflects the possibility of introducing new faults when correcting or modifying the software. The failure life-cycle distribution used generalized gamma type distribution which has the efficient various property because of various shape and scale parameter. Thus, software release policies which minimize a total average software cost of development and maintenance under the constraint of satisfying a software reliability requirement becomes an optimal release policies. In a numerical example, after trend test applied and estimated the parameters using maximum likelihood estimation of inter-failure time data, estimated software optimal release time.

• International Journal of Concrete Structures and Materials
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• v.3 no.2
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• pp.103-110
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• 2009

Concrete carbonation is a cause of problems in concrete structures, so it needs to be estimated. And concrete cover is designed to protect structures from this damaging. Usually the cover thickness is considered based on the limit states design codes in which the important target is the reliability safety index. However, it is not clear that whether the safety index determined is optimal or not with respect to the cost. The codes are mainly proceeded quantitatively (i.e. making a safe structure) while the economic aspects are only considered qualitatively. So the reliability-based design considering life cycle cost (LCC) is called for, and here the focus is on the advanced analysis solution to optimize the reliability safety regarding LCC.

• International Journal of Internet, Broadcasting and Communication
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• v.8 no.3
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• pp.63-68
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• 2016

This thesis proposed an objective and accurate fundamental numeric data for the economics and business analysis of applicable CCS technology to plant using existing fossil fuel by analyzing the influence of process improvement for commercialization of Carbon Capture and Storage(CCS) technology, which enables storing $CO_2$ generated by fossil fuel by extracting before emitting to air and press until it becomes liquid, and development and performance improvement of new solvent on Total Life Cycle Cost(TLC) of CCS.

• Journal of the Korea institute for structural maintenance and inspection
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• v.15 no.5
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• pp.113-123
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• 2011

LCC analysis is a method that coordinates with function evaluation for value improvement, rather than a separate one for cost evaluation. Although its accuracy is rising, materials and structural types developed or applied relatively recently have yet to obtain a sufficient maintenance profile DB, inducing reliability to reduce from difficulties in estimating maintenance records. Based on the above mentioned background, this paper presents the LCC methodology of coordinating functional intensification matters with cost for analysis on alternatives with difficulties in setting maintenance profile. Recently, steel plate bridge deck pavements are faced with problems such as plastic deformation due to the increase in heavy vehicles and traffic, promoting the development of a new compound pavement. This paper execute LCC analysis by mentioning case studies of SMA, Guss and PSMA pavements to include performance scale compared between alternatives as relative evaluation coefficients into the maintenance profile.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2016.05a
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• pp.87-88
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• 2016

In order to assess the design value of engineering work from the point of view of LCC (Life Cycle Cost) in Korea, it is mandatory for all construction works that the total construction costs are over 10 billion won. The LCC includes initial construction costs, maintenance & operation costs, energy costs, end-of-life costs, and so on. Among these, the portion for maintenance & operation costs for a building is sizeable, as compared to the initial construction costs. Furthermore, the paradigm for construction industry has rapidly shifted from 2D to BIM, which includes design planning and data management. However, the study of BIM-based LCC analysis is not adequate today, even though all domestic construction projects ordered by the Public Procurement Service have to adopt BIM. Therefore, this study suggests a methodology of BIM-based LCC analysis that is particularly focused on repair and replacement (R&R) cost. For this purpose, we defined requirements of calculating R&R cost and extracted X from the relevant IFC data. Thereafter, we input them to the ontology of calculating the initial construction costs to obtain an objective output. Finally, in order to automatically calculate R&R cost, mapping with R&R criteria was performed. We expect that our methodology will contribute to more efficiently calculate R&R cost and, furthermore, that this methodology will be applicable to all range of total LCC. Thus, the proposed process of automatic BIM-based LCC analysis will contribute to making LCC analysis more fast and accurate than it is at present.

• Journal of Korean Society of Environmental Engineers
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• v.39 no.4
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• pp.169-179
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• 2017

This study was conducted to supply information that can be utilized as data for desalination plant construction in the future by estimating unit cost of water production in the potential site of Incheon, Daesan, Yeosu, Busan, Ulsan and Sokcho in Korea. The production costs in Sokcho and Ulsan were similar to those of Busan and Yeosu. Those four sites showed better economic range due to low construction cost for intake facility compared to Incheon and Daesan. Although the salinity measured in the above 6 sites did not show perceptible effect on the production cost, the difference of seasonal seawater temperature needs to be considered due to the change of flux in reverse osmosis (RO) membrane. It turned out that the most critical parameters are the amortization in a year by the analysis of life cycle and the capacity of plant. Incheon and Daesan showed the difference of production cost up to 29% at the condition of amortization in 25 year, and up to 22% depending on plant capacity. However, the production cost in this study did not take into account of other indirect costs, therefore, this should be considered as the minimum cost.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.329-332
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• 2003

The Ministry of Construction and Transportation has estimated the reconsideration of economy in construction and the dullness of LCC forcast method which supports decision-marking in safety and maintenance of buildings. So, they have introduced LCC analysis method in steps of a feasibility study and design. Because of the introduction of LCC analysis process and method, it would be possible to make a logical decision from management maintenance, estimation, user point of view. In this study, it would bepossible to show a plan and alternative of design factors and structure in one building by using LCC analysis method and to compare and analyze the reduction of life circle cost bi the elapsed time.

• The Journal of Sustainable Design and Educational Environment Research
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• v.15 no.1
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• pp.1-10
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• 2016

School facilities are one of the important educational requirements, and it is necessary to maintain safe and sustainable for the ongoing educational environment. For this reason, educational government department have an effort to produce school facilities that have become safe, comfort, convenient and high-quality. There are many methods to improve existing buildings and build new schools by energy efficient technology. Even though educational environment of school facilities are improved by the efforts, the energy consumption has a huge increase. Energy is a major budget item for schools. The accurate estimation of energy cost is critical for effective budgeting and financing for the school facility maintenance. Accurate energy cost estimation also allow for a anticipatable LCC (Life Cycle Cost) of new school facilities. In this study, in order to produce a basic information about the present energy usage status in domestic school facilities, energy usage quantity is regionally analysed according to physical characteristics of elementary, middle, and high school facilities. Those results will give a chance to see deeply the pros and cons of energy usage each regional school facilities.

• International Journal of Highway Engineering
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• v.19 no.5
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• pp.1-11
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• 2017

PURPOSES : This study is aimed at development of a stochastic pavement deterioration forecasting model using National Highway Pavement Condition Index (NHPCI) to support infrastructure asset management. Using this model, the deterioration process regarding life expectancy, deterioration speed change, and reliability were estimated. METHODS : Eight years of Long-Term Pavement Performance (LTPP) data fused with traffic loads (Equivalent Single Axle Loads; ESAL) and structural capacity (Structural Number of Pavement; SNP) were used for the deterioration modeling. As an ideal stochastic model for asset management, Bayesian Markov multi-state exponential hazard model was introduced. RESULTS:The interval of NHPCI was empirically distributed from 8 to 2, and the estimation functions of individual condition indices (crack, rutting, and IRI) in conjunction with the NHPCI index were suggested. The derived deterioration curve shows that life expectancies for the preventive maintenance level was 8.34 years. The general life expectancy was 12.77 years and located in the statistical interval of 11.10-15.58 years at a 95.5% reliability level. CONCLUSIONS : This study originates and contributes to suggesting a simple way to develop a pavement deterioration model using the total condition index that considers road user satisfaction. A definition for level of service system and the corresponding life expectancies are useful for building long-term maintenance plan, especially in Life Cycle Cost Analysis (LCCA) work.