What is meant by 'life cycle cost' in the RCM context?

In the context of Reliability-Centered Maintenance (RCM), 'life cycle cost' refers to the total cost of owning and maintaining equipment throughout its operational life. This encompasses not only the initial purchase price of the asset but also ongoing expenses including maintenance, operational costs, repairs, and any costs associated with downtime or failures that may occur during the life of the asset.

Understanding life cycle cost is crucial in RCM as it helps organizations make informed decisions about investments in equipment and maintenance strategies. By evaluating the total cost rather than just the upfront capital expenditure, businesses can better assess the long-term value and performance of their assets, ultimately leading to more cost-effective management and allocation of resources. This holistic view is essential for implementing effective maintenance strategies that enhance asset reliability and efficiency over time.