In a notable presentation at the DIG.IT.ALL Forum Series, hosted with the International Construction Week (ICW) 2023, Sr Zuhry Mazlan, Executive Director of MCM Value Sdn Bhd, shared insightful perspectives on optimising digital sustainability investments for cost-efficient built asset management.
Zuhry opened the discussion by explaining the concept of Life Cycle Cost (LCC) as an economic assessment methodology. This comprehensive approach considers all significant ownership costs over an asset’s economic life, expressed in terms of equivalent dollars. Quoting Kirk & Dell’Isola, Zuhry emphasised the significance of viewing LCC as an effective decision-making process, as advocated by Flanagan & Norman.
Highlighting the importance of holistic decision-making, Zuhry stressed that investment decisions should not be based solely on initial costs. Instead, he asserted that decisions must consider the total LCC of an asset, where future costs are as crucial as those incurred during capital acquisition.
The speaker transitioned into the digital realm, outlining the various components of LCC that undergo digitalisation. Digitalisation allows for a nuanced understanding of an asset’s life cycle, from initial development and construction costs to future running costs encompassing replacement, operation, maintenance, and end-of-life expenses.
Zuhry elucidated the systematic approach to LCC data collection and analysis. Emphasising the need for standardised data collection, he outlined the criteria for data quality, filtration, and trendline analysis. The unit cost standardisation and comparison were crucial steps in the LCC analysis process.
Further, he provided insights into the future trajectory of LCC optimisation. The steps forward included cost forecasting, cash flow analysis, financial feasibility assessments, and Cost-Benefit Analysis (CBA) integration.
In summary, the presentation at the DIG.IT.ALL Forum Series was a solid exploration of digital sustainability investments for cost-efficient built asset management. The thought leadership emphasised the intricacies of LCC and outlined practical steps for its effective digitalisation, setting the stage for a more informed and strategic approach to construction project decision-making.
