Asset managers have many concerns about the cost of maintaining assets in relation to their longevity. How long will the assets last? Is it profitable to replace sooner rather than later, and which risks increase or decrease? If we are going to replace certain assets, what choices do we make and how will these choices affect the generations to come? Insight based on Long Term Asset Planning and Life Cycle Costing can help.
Two methods with different functions
Long Term Asset Planning (LTAP) and Life Cycle Costing (LCC) have different functions despite often being mentioned in the same breath. LTAP provides insight into maintenance and replacement times. An LCC analysis helps with weighing up what is most cost-effective: asset maintenance or replacement. Pragma can help you with both LTAP and LCC.