O Cr 001r1

Topics: Preventive maintenance, Integers, Maintenance Pages: 38 (6973 words) Published: April 19, 2015
NORSOK STANDARD

COMMON REQUIREMENTS

LIFE CYCLE COST FOR SYSTEMS AND EQUIPMENT

O-CR-001
Rev. 1, April 1996

Please note that whilst every effort has been made to ensure the accuracy of the NORSOK standards neither OLF nor TBL or any of their members will assume liability for any use thereof.

Life cycle cost for systems and equipment

O-CR-001
Rev. 1, April 1996

CONTENTS
1 FOREWORD

2

2 SCOPE

2

3 NORMATIVE REFERENCES

2

4 DEFINITIONS AND ABBREVATIONS
4.1 Definitions
4.2 Abbrevations

2
2
4

5 CALCULATION METHOD
5.1 General
5.2 Applications
5.3 Uncertainty
5.4 Assumptions
5.5 Calculation method

4
4
4
4
4
4

ANNEX A ASSUMPTIONS (NORMATIVE)
ANNEX B LIFE CYCLE COST MODEL FOR SYSTEMS AND EQUIPMENT
(NORMATIVE)
ANNEX C USER GUIDE LCC MODEL FOR SYSTEMS AND EQUIPMENT
(NORMATIVE)

NORSOK standard

Page 1 of 9

Life cycle cost for systems and equipment

1

O-CR-001
Rev. 1, April 1996

FOREWORD

NORSOK (The competitive standing of the Norwegian offshore sector) is the industry initiative to add value, reduce cost and lead time and remove unnecessary activities in offshore field developments and operations.

The NORSOK standards are developed by the Norwegian petroleum industry as a part of the NORSOK initiative and are jointly issued by OLF (The Norwegian Oil Industry Association) and TBL (The Federation of Norwegian Engineering Industries). NORSOK standards are administered by NTS (Norwegian Technology Standards Institution).

The purpose of this industry standard is to replace the individual oil company specifications for use in existing and future petroleum industry developments, subject to the individual company's review and application.

The NORSOK standards make extensive references to international standards. Where relevant, the contents of this standard will be used to provide input to the international standardization process. Subject to implementation into international standards, this NORSOK standard will be withdrawn. All annexes are normative.

The described LCC model has been developed on a spreadsheet and is available as an Excel file. For further information contact the NORSOK administration at NTS. This standard replaces Life cycle cost, P-CR-002, Rev. 1, December 1994. Minor changes are made to clause 1, Foreword and clause 4.1, Definitions and it is renamed and renumbered.

2

SCOPE

The scope of this standard is to standardize Life Cycle Cost calculation methods for systems and equipment.

3

NORMATIVE REFERENCES

NORSOK O-DP-001

4

Operational principles.

DEFINITIONS AND ABBREVATIONS

4.1
Definitions
Normative references
Informative references
Shall
Should
May
Can
NORSOK standard

Shall mean normative in the application of NORSOK standards. Shall mean informative in the application of NORSOK standards. Shall is an absolute requirement which shall be followed strictly in order to conform with the standard.

Should is a recommendation. Alternative solutions having the same functionality and quality are acceptable.
May indicates a course of action that is permissible within the limits of the standard (a permission).
Can-requirements are conditional and indicates a possibility open to Page 2 of 9

Life cycle cost for systems and equipment

O-CR-001
Rev. 1, April 1996

the user of the standard.
System and Equipment
Purchase Cost

The total purchase cost within a vendors scope of supply.

Installation Cost

The total cost to install the system and equipment within the vendors scope of supply.

Commissioning Cost

The total cost to commission, and where necessary certify, the installed system and equipment.

Insurance Spares Cost

The total purchase cost for the initial spares holding for the system and equipment within the vendors scope of supply, necessary to obtain the required system regularity.

Reinvestment Cost

The total cost to remove, refurbish or purchase, install and...
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