Maintenance Management Economics

What is your understanding of Maintenance Management Economics ?
Economics and Maintenance:
Maintenance is generally looked into from a technical point of view. My understanding of this topic is that maintenance can be looked into based on economics. As in how maintenance can be seen as an investment and as an insurance deposit, with the aim to sustain or increase the corporate revenue and profits, thus not only looked at maintenance from the angle of costs. There are several calculation models that can be used to justify major maintenance activities or divisions from an economic point of view.

Life Cycle Costing:
LCC is also a part of economical maintenance. There are different calculation models, tools and literature on the market that can be referred to. In general LCC consists of ദി following costs:
1- CAPEX Capital Expanses as a one time investment - Engineering - Procurement - Constriction - Modifications
2- OPEX Operational Expanses as an annual expense - Operations - Maintenance (Overhead, Corrective, Preventive, Predictive) - Energy - Stocks
3- OEE Production loss as losses that annually have to be prevented
4- (SHE) Governmental fines as costs that annually have to be prevented -5- Economic Devaluation Annually

Net Present Value NPV:
NPV can be used in maintenance budgeting to analyze the profitability of a maintenance related investment or project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. NPV compares the value of a Euro today to the value of that same Euro in the future, taking inflation and returns into account. If the NPV of a prospective maintenance project is positive, it should be accepted. If the NPV of a prospective maintenance project is negative it should probably be rejected because cash flows will also be negative.