Editing Stainless steel (section)

== Life cycle cost==

[[Whole-life cost|Life cycle cost]] (LCC) calculations are used to select the design and the materials that will lead to the lowest cost over the whole life of a project, such as a building or a bridge.<ref>{{Cite web|url=http://worldstainless.org/about-stainless/life-cycle-costing/|title=Life cycle Costing|website=World Stainless ( www.worldstainless.org )|access-date=1 October 2021|archive-date=17 September 2021|archive-url=https://web.archive.org/web/20210917064903/https://www.worldstainless.org/about-stainless/life-cycle-costing/|url-status=live}}</ref><ref>{{Cite web|url=https://www.wbdg.org/resources/life-cycle-cost-analysis-lcca|title=Life Cycle Cost Analysis|last=Fuller|first=Sieglinde|date=2016|website=WBDG |access-date=1 October 2021|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414011309/https://www.wbdg.org/resources/life-cycle-cost-analysis-lcca|url-status=live}}</ref>

The formula, in a simple form, is the following:<ref>{{Cite web|url=https://highways.dot.gov/public-roads/novemberdecember-2005/applying-lcca-bridges|title=Applying LCCA to Bridges|last1=Al-Wazeer|first1=Adel|last2=Harris|first2=Bobby|date=2005|editor-last=Federal Highway Administration (USA)|series=Publication FHWA-HRT-06-001 Vol. 69 No. 3, Nov-Dec 2005|last3=Nutakor|first3=Christopher|access-date=1 October 2021|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414011043/https://www.fhwa.dot.gov/publications/publicroads/05nov/09.cfm|url-status=live}}</ref><ref>{{Cite web|url=https://shop.bsigroup.com/en/ProductDetail/?pid=000000000030101720|title=ISO 15686-5 Standard: Buildings and constructed assets. Service life planning. Life cycle costing|date=2008|access-date=1 October 2021|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414010816/https://shop.bsigroup.com/en/ProductDetail/?pid=000000000030101720|url-status=dead}}</ref>{{verification needed|date=June 2023}}

: <math> \text{LCC}=\text{AC}+\text{IC}+\sum_{n=1}^N\frac{\text{OC}}{(1+i)^n}+\sum_{n=1}^N\frac{\text{LP}}{(1+i)^n}+\sum_{n=1}^N\frac{\text{RC}}{(1+i)^n} </math>

where LCC is the overall life cycle cost, AC is the acquisition cost, IC the installation cost, OC the operating and maintenance costs, LP the cost of lost production due to downtime, and RC the replacement materials cost.

In addition, ''N'' is the planned life of the project, ''i'' the interest rate, and ''n'' the year in which a particular OC or LP or RC is taking place. The interest rate (''i'') is used to convert expenses from different years to their present value (a method widely used by banks and insurance companies) so they can be added and compared fairly. The usage of the sum formula (<math display="inline">\sum</math>) captures the fact that expenses over the lifetime of a project must be cumulated (added together) after they are corrected for interest rate.{{citation needed|date = March 2020}}

'''Application of LCC in materials selection'''

Stainless steel used in projects often results in lower LCC values compared to other materials. The higher acquisition cost (AC) of stainless steel components are often offset by improvements in operating and maintenance costs, reduced loss of production (LP) costs, and the higher resale value of stainless steel components.{{citation needed|date = March 2020}}

LCC calculations are usually limited to the project itself. However, there may be other costs that a project stakeholder may wish to consider:{{citation needed|date = March 2020}}
* Utilities, such as power plants, water supply & wastewater treatment, and hospitals, cannot be shut down. Any maintenance will require extra costs associated with continuing service.
* Indirect societal costs (with possible political fallout) may be incurred in some situations such as closing or reducing traffic on bridges, creating queues, delays, loss of working hours to the people, and increased pollution by idling vehicles.