A3 Book section, chapters in research books

Levelized Function Cost: Economic Consideration for Design Concept Evaluation

Open Access publication

Publication Details
Authors: Kozlova Mariia, Chechurin Leonid, Efimov-Soini Nikolai
Editors of book: Chechurin, Leonid; Collan, Mikael
Edition name or number: 1
Publishing place: Cham, Switzerland
Publication year: 2018
Language: English
Title of parent publication: Advances in Systematic Creativity – Creating and Managing Innovations
ISBN: 978-3-319-78074-0
eISBN: 978-3-319-78075-7
JUFO-Level of this publication: 3
Open Access: Open Access publication
Location of the parallel saved publication: http://urn.fi/URN:ISBN:978-3-319-78075-7


Design concept selection lacks economic evaluation in the early stages of the design process. This chapter introduces the levelized function cost for express design evaluation, adapted from the power generation sector. A single indicator represents all concept-related life-cycle costs per a unit of function produced, reflecting also the lifetime and productivity. The indicator allows comparing fundamentally different designs, and handles different sets of function objects. After a brief overview and comparison of potential indicators for economic assessment of design concepts this paper introduces the levelized function cost providing its derivation and definition, analyzes its sensitivity to the input variables, depicts the range of problems that can be addressed with the levelized function cost estimate, and finally illustrates its application in a flow meter design case.

Last updated on 2019-11-10 at 11:12