Workshop 1 L4M7: Whole Life Asset Management

Module purpose

On completion of this module, learners will be able to explain methods of inventory storage
and control and analyse the concept of whole life cost from concept through to disposal.

Module aim(s)

Whole life costing takes into account the total cost of a product or service over its lifetime,
from concept through to disposal including purchase, hire or lease, maintenance, operation,
utilities, training and disposal. Hence, it is important for those involved in the procurement
and supply function to take all these elements into consideration when making decisions and
comparing the costs of buying, renting or leasing equipment. In most cases the purchase
costs are a small proportion of the cost of operating it. Although costly, there are numerous
reasons why organisations elect to hold inventory. The management and control of such
inventory is therefore vital to organisational success. This module is designed for those who will
have responsibility for the whole life management of assets and enables learners to analyse
methods for inventory movement and control and to analyse the concept of whole life cost.