Title:
LIFE CYCLE COST ANALYSIS OF NBRRI DESIGNED AND FABRICATED INTERLOCKING BLOCK MAKING MACHINE

Authors:
Apeh, F. I., Ogwu, E. A. And Ogedoh, I. T, Nigeria

Abstract:

Most entrepreneurs calculate the cost of an asset based on initial cost only without consideration to cost relating to operation and maintenance throughout the lifetime of the asset. This traditional method of considering only the initial cost of an asset for decision making sometimes leads to incorrect conclusions. The ever-rising costs of operating and maintaining has given preference to the overall savings in the lifetime of an equipment that can be achieved by cost effective solutions in the design stage of the equipment. This paper therefore presents a life cycle cost, (LCC) analysis of a semi-automated interlocking block making Machine (SAIBM) designed and fabricated by the Nigerian Building and Road Research Institute, (NBRRI). The study was carried out by sourcing technical data from the Engineering Materials Research Department (EMRD), NBRRI mechanical workshop and data from the manufacturers of standard parts. These data included retail, operating, maintenance and disposal cost of the machine. LCC model was used alongside the Net Present Value (NPV) in estimating the true cost owning the machine assuming a 5 - year useful life. The LCC for the machine was estimated at an NPV of ₦ 12,888,566.73. with a proposed discount value of 4.5 % per annum. The findings from this study will give investors improved awareness of total cost of the equipment which will aid in planning, and effective decision making.