How to Quickly Estimate a 30 Year Operations Cost
How to Quickly Estimate a 30 Year Operations Cost
(OP)
All,
I have been tasked to estimate OM&M operations cost for a facility that I oversee. I have an annual budget in mind but need to get a snapshot together of what it would cost our client to operate this facility for the next 30 years.
I need a simple formula to use, and do not want to purchase any software yet.
Thanks in advance..
W
I have been tasked to estimate OM&M operations cost for a facility that I oversee. I have an annual budget in mind but need to get a snapshot together of what it would cost our client to operate this facility for the next 30 years.
I need a simple formula to use, and do not want to purchase any software yet.
Thanks in advance..
W





RE: How to Quickly Estimate a 30 Year Operations Cost
I would have used an excel spreadsheet and split the facility running cost i main groups. Samplewise for instance: financial yearly costs (interest, rent, insurance etc), bought yearly outside services (gas, electricity, oil, services), yearly manpower - human resources.
Add to that equipment and building 'parts' in main groups: vehicles, machinery, heating, ventilation, roof, floors, ouitside are and roads etc with yearly running cost.
Add to that not a 'tax related' depreciation each year as a cost, but evaluate in stead what actually will have to be replaced or be selected renewed in the next 30-year periode.
This will vary, according to the wish to end up with a 'tip-top' standard facility after the 30 years, or taking out the value of existing facilities by leaving the facility more run-down.
You are of course right, no standard formula I know of , differ between the range of choices for running up or riding down the standard of something. 'Running cost' is a somewhat variable choice if you go for a 30-year periode.
RE: How to Quickly Estimate a 30 Year Operations Cost