A Statistical Activity Cost Analysis of engineering assets

Andrew Colin, Michael Falta, Steve Su, Lyle Turner, Roger J. Willett, Rodney Wolff

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review

1 Citation (Scopus)

Abstract

In this paper, Statistical Activity Cost Analysis (SACA) is used to identify the interaction of mutually dependent physical and financial aspects of a fixed asset-like system configuration. The novelty of the approach is, having established a rational description of the uncertainty inherent in both domains, the analysis of their interaction. Little research to date has investigated the duality of engineering and accounting aspects, in a statistical setting. Our approach is conceptual rather than empirical. We use an illustrative 4-component model, a) to explain the concept of SACA by means of a software demonstration tool, b) to relate financial issues of cost to engineering asset capacity to perform specified tasks, and c) to demonstrate how to produce quantified measures of return and risk, both of which are relevant in areas of life-cycle analysis, budgeting and planning decision-making.

Original languageEnglish
Title of host publicationDefinitions, Concepts and Scope of Engineering Asset Management
EditorsJoe E. Amadi-Echendu, Kerry Brown, Roger Willett, Joseph Mathew
Place of PublicationLondon UK
PublisherSpringer-Verlag London Ltd.
Pages123-135
Number of pages13
ISBN (Electronic)9781849961783
ISBN (Print)9781849961776
DOIs
Publication statusPublished - Dec 2010
Externally publishedYes

Publication series

NameEngineering Asset Management Review
Volume1
ISSN (Print)2190-7846
ISSN (Electronic)2190-7854

Keywords

  • Dualism Reliability-Cost
  • Financial and Physical Relationships
  • Risk an Return
  • Statistical Activity Cost Analysis
  • Uncertainty

Cite this

Colin, A., Falta, M., Su, S., Turner, L., Willett, R. J., & Wolff, R. (2010). A Statistical Activity Cost Analysis of engineering assets. In J. E. Amadi-Echendu, K. Brown, R. Willett, & J. Mathew (Eds.), Definitions, Concepts and Scope of Engineering Asset Management (pp. 123-135). (Engineering Asset Management Review; Vol. 1). Springer-Verlag London Ltd.. https://doi.org/10.1007/978-1-84996-178-3_7