An introduction to life cycle cost

Get an introduction to the hidden costs in a pumping system.

Life Cycle Cost, or LCC, is a concept used to determine the total cost of a pump or a pumping system over time. In this course, we'll show you the most important factors in a Life Cycle Cost calculation.

But first, why is it important to learn about Life Cycle Cost? Well, when we invest in a new pumping system or replace an old one, we tend to focus on the most obvious cost – the initial cost. But over a 20-year period, the initial cost only makes up a small part of the total cost – it's the tip of the iceberg.

Under the surface lies a group of equally important costs that we need to pay attention to. These are the installation and commissioning costs, energy costs, operating costs, maintenance costs, downtime costs, environmental costs, and decommissioning and disposal costs. When we put all these costs together, we get the total cost of a pumping system over a period of time.

When it comes to commercial buildings, like office buildings, hospitals and shopping centres, the three most important factors of a Life Cycle Cost calculation are the initial costs. These are the purchase price, the maintenance costs, and the energy costs of the system.

That means that a pump has more than one price tag. So besides looking at the price tag with the initial cost, you have to think about the maintenance costs over time as well. And last but not least, you should look at the most expensive element of them all – the energy costs. When you invest in a new pump, you have to make sure that you've checked all three price tags.

Course overview

Modules: 3
Completion time
Completion time: 10 minutes
Difficulty level
Difficulty level: Intermediate