Urban Water Supply Management: Challenges and Solutions

This assignment delves into the multifaceted challenges facing urban water supply systems. Students are tasked with analyzing various aspects, such as the impact of aging infrastructure on corrosion, the influence of climate change on water availability, and the application of life cycle assessment (LCA) for sustainable management. The readings provided offer insights into integrated urban water management strategies, risk factors in construction projects, and innovative approaches to enhance water security.

Running head: LIFECYCLE AND RISK MANAGEMENT
Lifecycle and Risk Management
Name of the Student:
Name of the University:

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LIFECYCLE AND RISK MANAGEMENT
Table of Contents
1.0 Identification of the asset- Water infrastructure Industry to increase derive life of water
pipeline............................................................................................................................................2
1.1 Background............................................................................................................................2
1.2 Selected asset.........................................................................................................................3
1.3 Process diagram where asset fits with the hardware system.................................................5
2.0 Identifying an approach of life cycle cost analysis....................................................................7
2.1 Lifecycle standards and approach selection..........................................................................7
2.2 Life cycle cost prediction and cost breakdown structure.....................................................10
3.0 Identification of the benefits doing life cycle costing in lifecycle management of selected
asset................................................................................................................................................18
References......................................................................................................................................23

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LIFECYCLE AND RISK MANAGEMENT
1.0 Identification of the asset- Water infrastructure Industry to increase
derive life of water pipeline
Heimersson et al. (2014) stated that asset management is managing the infrastructure of
capital asset for reducing the total owner cost and operating the assets while deliver the required
service levels. Harder et al. (2014) argued that asset management achieves a sustainable
infrastructure of the selected asset. United Arab Emirates (UAE) faces various water
management challenges such as groundwater scarcity, higher cost of water production and
limited wastewater treatment. Due to growing need of water treatment, there is significant
requirement of water supply system. Therefore, there is need to invest into new water
infrastructure to meet with current demand of Dubai.
1.1 Background
The asset for this assessment is development of water supply system (water pipeline
network) which is conducted into water infrastructure industry. Dubai Electricity and Water
Authority (DEWA) introduced the expansion of water pipeline project in different locations into
emirate. The expansion project of water pipeline in Dubai is 46km project which would intend to
increase flow of water between two roads (Sheikh Mohammed bin Zayed Road and Emirates
Road). The main objective behind the investment into water infrastructure is to improve water
quality of Dubai for human consumption and provide the growing population of Dubai with
access to water mains. This asset improves the water supply towards the growing population of
Dubai (GulfNews 2017). By the year 2030, this asset is planning to increase the capacity of
water by 60 percent. The project is based on extension of water connectivity between United
Arab Emirates.

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LIFECYCLE AND RISK MANAGEMENT
Asset management of water infrastructure ensures that planned maintenance is conducted
and capital assets (water pipeline) are repaired and upgraded on schedule time and budget.
Advanced water infrastructure asset management achieves sufficient level of services into the
future with regard to high quality of water, prevention of both pollution and urban flooding
(Stark 2015). Water supply system asset management is keystone for sustainability which
supports planning and day-to-day need to optimize financially over longer term. One of the
significant insights into asset management is to deal with the life cycle price of chosen asset from
setting up, scheming and building of the operational cycle. The project manager takes the capital
investment decisions concerning the expansion of water supply system (Burke 2013). This study
maintains nature of water infrastructure based on cost as well as usage of water into growing
population of Dubai. Strategic decision making is established to develop the asset management
policies and long term investments into the water infrastructure industry.
1.2 Selected asset
In Dubai, DEWA started to work into the water supply system for commissioning,
delivering and installation of water pipeline network across Emirates. This network manages the
increasing demand of water into emirate and provide of higher quality infrastructure for
sustainable development into Dubai. This water supply system meets with current as well as
future demand of water into Dubai (GulfNews 2017). The water management into UAE is
improved throughout different types of measures. The government makes various preparations
for expansion of proposed system. The current state is such that water flowing throughout ageing
pipelines is contaminated of bacteria, which makes the water undrinkable (Campbell, Jardine and
McGlynn 2016). Therefore, in order to solve identified problem, water supply system with
expansion of water pipeline is selected as asset of this particular assessment. It is advantageous

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LIFECYCLE AND RISK MANAGEMENT
to carry out of life cycle cost breakdown for the water infrastructure and following are the
objectives to meet with goals such as:
 To develop of pipeline network for stopping contamination of water
 To determine environmental friendly design of the water supply system
 To reduce water contamination risks with respect to environment and economy
 To achieve of low life cycle cost based on project requirements
 To improve sustainable use of water
 To improve investment and operational competence into water infrastructure
organization
Mainly, the assessment study is based on design of water supply system includes of water
pipeline network to the population of Dubai. The benefit of this asset is to transport of water
using gravity and water quality is being preserved. Water supply system represents most of the
assets into water utility (Harder et al. 2014). The design of proposed system is based on one of
the most significant factor such as cost. Least cost approach leads to minimum capacity of water
supply network. Cost model is used to search for least cost solutions based on pipe size even as
satisfying the constraints like required output pressure, maximum flow of pipe furthermore
velocity of the flow of pipe. The expenditure of the water supply system execution is purpose of
diameter of pipe; consequently it is an issue to find the least cost solution by optimization of pipe
size for providing least acceptable capacity (Renuka, Umarani and Kamal 2014). Water supply
system is vital for the purpose to take out life cycle price analysis into the water infrastructure
work.

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LIFECYCLE AND RISK MANAGEMENT
The study is based on “Establishment of inventory for life cycle cost analysis of the water
supply system”. Development of water inventory system is handled with defining the data asset
into the water infrastructure (Sadhukhan, Ng and Hernandez 2014). The future work is based on
purpose and functions of water supply system such as pipeline network, communication, delivery
along with water supply services. The main purpose of water supply system is to deliver of water
to the consumers with proper quality and quantity (Rodger et al. 2016). After the water pipeline
network, pipeline inspection is done with assessment of gravity mains into operational
constraints of wastewater utilities. Issues related to selection of pipe diameter to configure low
cost water supply system is required to be resolved using cost analysis.
1.3 Process diagram where asset fits with the hardware system
The step into water supply system assessment process is to describe the entire supply of
water process. It covers entire system from source to water supply point, covers of different
types of source water, processes for water treatment.
Types of systems used
into water supply
system
Activities of the respective systems
Surface water Description of water body, flow of water, retention time, bulk of
water transport (Doll et al. 2015).
Ground water system Flow rate, water direction, recharge area, depth of casing, well head
protection (Sahin et al. 2016).
Treatment system Treatment processes, efficiencies, disinfection removal of pathogens
Distribution system Reservoir design, design of distribution system, backflow protection

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LIFECYCLE AND RISK MANAGEMENT
Use of groundwater Use of surface water
Abstraction of
surface water
Storage system
Pre-treatment
system
Infiltration
Treatment system
Storage system
Distribution system
Ground water
system
Consumer
Transport system
Storage system
Figure 1: Process diagram of water supply system

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LIFECYCLE AND RISK MANAGEMENT
(Source: Scholten et al. 2015, pp-259)
2.0 Identifying an approach of life cycle cost analysis
In order to conclude on environmental friendly plan of the water supply system, life cycle
cost (LCC) analysis is being passed out for creating inventory of the materials as well as energy.
This particular study is carried out for different variables regards to water consumption and
linked to ecological impact of the planned system (Clay and Fong 2013). This assessment is
approached concept of the inventory development for purpose of the LCC analysis. Based on
some of the procedures, LCC is done for enabling management to know and direct of the water
supply system. LCC analysis is functional on number of water supply system to give consistent
information to the manager for making decisions related to asset management issues.
2.1 Lifecycle standards and approach selection
Pikaar et al. (2014) determined that implementation of asset management system needs
investment of time and cost into the industry. The life cycle standards is established by ISO
55000 certification. This particular standard formulates that asset management gives value to the
customers and project manager. With establishment of water supply system, value of asset is
realized to the stakeholders. ISO 55001 standards is provided with asset management decision
regarding development of water pipeline network when the decisions are best for managing
selected asset into the project work (Sahin, Stewart and Porter 2015). The project management
team determines proper design and operation of the water supply system. In order to analyze the
life cycle costing of this particular project work, Net Present Value is used by the industry. The
benefits of ISO 55001 asset management standards are as follows:

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LIFECYCLE AND RISK MANAGEMENT
1. Reduction of the risks which are associated with ownership of water supply system is
done. The risks are avoidable maintenance cost, inefficiency into prevention of accidents
at the site (Monczka et al. 2015).
2. Improvement over the quality assurance of the water pipeline network
3. Supports of international growth of business which demonstrates the requirements of
asset management system (Godfrey and Hailemichael 2017).
4. Maximization of the existing operating experiences
5. Alignment of the engineering decisions with the business objectives
LCC analysis calculates the cost which is generated throughout entire process of
development of water supply system from planning to disposal of the facility (Lee et al. 2017).
Following are the steps of ISO 55001 standard of asset management are:
Planning: One of the most important parts of LCC analysis for the water pipeline network is
estimation of the performance of pipe which makes the network. The performance is measured
based on expected failure, replacement along with direct and indirect cost for each stages (Doll et
al. 2015). Planning models are used to assess future cost for failure of pipeline. The models
require of detailed analysis of failure data for the pipeline asset.
Data collection: Collecting of data is another essential part of this standard into water
infrastructure activities. Proper planning is required to determine what data are collected, how it
is collected and where it has to store (Zhang, Kuczera and Kiem 2015). Data for analyzing the
pipeline failure is relied on reliable data over five years for achieving meaningful predictions of
the future trends. Following are the types of data which are required:
i. Pipeline material- Using of water industries agreed codes

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LIFECYCLE AND RISK MANAGEMENT
ii. Installation of data- It should provide the year of installation
iii. Pipeline location- Town and zip code are required and what type of pipe is buried
under the road (Lee et al. 2017).
iv. Data related to soil- Again, there is use of industry standard codes to get the
information on soil type
v. Failure data- After occurrence of failure into the pipeline, then some set of data is
needed such as what type of failure, when it occurs and what are possible actions
should be taken to overcome the failure (Stenström et al. 2017).
Acquisition: Expansion of water pipeline network requires a significant capital
investment. Due to expansion of the network, there is needed to meet current standards which
increase both design, operational and examination cost of the project (Scholten et al. 2015).
Those changes lead to additional scope into the asset due to new upgradation of water pipeline
network.
Operation: The operational cost of the system is estimated using LCC analysis of
network (LICAN) model. The users are required to determine installation cost, repair and also
pipe replacement cost into the water network varied on size and set of time frame for the analysis
(Fletcher et al. 2017). This proposed model includes of cost for water loss. Output of this model
includes of tables, charts for comparing the alternatives, characteristics of water pipeline network
and summarizing the pipeline materials based on length, size and initial cost for water supply
system. The approach to LICAN model is to forecast the annual probability of failure for each
size of pipe based on length of pipe (Asefa, Adams and Kajtezovic-Blankenship 2014). For each
of the pipeline segment, expected probability of failure into the pipe is estimated for each year

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LIFECYCLE AND RISK MANAGEMENT
into the forecasted period. The inventory for water pipeline network enables the performance of
entire network which is obtained based on few parameters.
Maintenance: The maintenance cost is provided per repair and cost for replacement of
pipe is calculated from the cost per unit length. Replacement of the pipeline reduces length of
existing pipes and creates new pipe into replacement year (Gurung et al. 2016). All the pipeline
failures are being repaired.
Disposal: The environmental factors are considered at highest priority in this phase. The
old water pipeline network have important amount of the water contamination materials which
are required for water treatment throughout removal (Paton, Maier and Dandy 2014). The
disposal cost for expansion of the system is expensive.
2.2 Life cycle cost prediction and cost breakdown structure
LICAN model calculates the future cost for development of water pipeline network asset
over forecasted period. This particular model is used to forecast the failure on year basis replaces
pipeline asset and moves to next year into forecasted period (Pietrucha-Urbanik 2015). LCC
analysis is considered as a method to predict the cost effective solutions for development of
water supply system (pipeline network). It is not providing an accurate solution but allows the
project manager makes a comparison between alternative solutions by means of limited data. The
water supply system has lifespan of around 15-20 years, therefore the cost elements are incurred
at outset and incurred at various times based on evaluation of various solutions. Therefore, it is
probable to predict present as well as discounted value of the LCC analysis to assess of various
solutions. This LCC analysis is being concerned with assessment of details of proposed system
design.

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LIFECYCLE AND RISK MANAGEMENT
The project manager considered maintenance cost with initial supply of the equipments.
The elements of the LCC analysis are shown in the following table:
LCC= Cic + Cin + Ce + Co + Cm + Cs + Cenv + Cd
Where, LCC Life cycle cost
Cic Initial cost, cost for purchase of pump, pipeline, system
Cin Installation cost includes of training
Ce Energy cost includes of predicted cost for operation of system
Co Operation cost includes of labor cost for supervision of water supply system
Cm Maintenance and repair cost includes of predicted water system repairs
Cs Down time cost due to loss of production
Cenv Environmental cost includes of contamination from the pumped liquids
Cd Disposal cost includes of disposal of the auxiliary services
Table 1: Elements of the LCC analysis
(Source: Cuéllar-Franca and Azapagic 2014, pp-179)
Following are the costs which are forecasted for growth of water supply system are:
a. Installation cost- Throughout first period of the planning of selected asset, the installation
cost for asset is calculated as cost per foot linked with new material along with diameter
is being multiplied by length (Fuchs et al. 2014). LICAN model adds of pipeline asset
one at time for each of the material. It includes of set of the equipments, connection to
process pipe, connection to electrical wiring, performance evaluation and connection to
auxiliary system.

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LIFECYCLE AND RISK MANAGEMENT
b. Energy cost- Consumption of energy is one of the most significant cost basics into the
LCC analysis when the pump established for the water supply system flows greater than
2000 hours/year. The data are collected on pattern of system productivity. When the
output is steady, then calculation becomes simple. When output is varied with time, then
there is requirement of time based usage pattern (Hawkins et al. 2013). The cost includes
of cooling circuits, liquid or gas barrier arrangements. The cost of cooling circuits include
of water cost, filtration, heat dissipation and circulation.
c. Repair cost- The event cost is being multiplied by fractional number of the repair events
expected into provided year for generation of total repair cost for the selected asset
(Cabeza et al. 2014).
d. Leakage cost- The model calculates the leakage from the joints. The volume of loss of
water by the asset is multiplied by unit cost of leakage in order to determine the cost of
leakage (Shin, Joo and Koo 2016). Loss of water throughout the leakage presents
significant cost for the water pipeline network. Through use of leakage model, the cost
for leakage is being estimated. The leakage is considered from the background leakage
that is occurred throughout joints into the pipe (Zakeri and Syri 2015). There is also
leakage from burst failures like longitudinal splits as well as breakage of circumferential.
e. Replacement cost- There is replacement of asset when prediction of total discounted
repair cost is greater as compared to cost of asset replacement and it results into lower
failure rate in the future (Palma-Behnke et al. 2013).When for the given year, there is no
replacement of asset, then cost becomes zero.
f. Pumping cost- The water pipeline network is designed as gravity network, with pumping
limited to supply tanks. The cost becomes similar to the network (Vilanova et al. 2015).

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LIFECYCLE AND RISK MANAGEMENT
g. Corrosion cost- The effects of the corrosion are being included into the pipeline failure
models (Hellweg and Canals 2014).
The cost which is estimated for different elements formulate the total life cycle cost requisite
allows assessment of the design of the water supply system. The total estimated cost provides
LCC values for comparison. The financial factors which are taken into consideration to develop
LCC analysis, it includes of:
I. Price of energy
II. Increase into annual energy cost throughout water supply system life time
III. Rate of discount
IV. Interest rate
V. Expected equipments life
Apart from all this, the user decides to include of maintenance, disposal, environmental,
down time and other costs. The change into investment cost is dependent on growing market.
The investment is done based on client’s demand and their satisfaction levels (Heijungs and Suh
2013). The estimation of cost is done by the management team after proper scheduling and
planning with maintenance of the water infrastructure. The life cycle cost analysis for the water
network is required for the water utilities so as to calculate and estimate long term cost for
installation, maintenance as well as upgradation of the asset. The UAE always looks for lowest
bid price which lead to consequences into the future with network skilling of high cost for repair
as well as loss of water. It requires of faster regeneration frequency of the installation of pipe as
outcome of lower upfront price approach (Cuellar-Franca and Azapagic 2014). Prediction of
pipeline predictions, higher failure rate is coupled with high rate of leakage which results into

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LIFECYCLE AND RISK MANAGEMENT
significant maintenance cost along with lost water cost for the lifetime of pipeline network. After
considering of the life cycle cost, all the cost documentation are done into the report. From the
report, the stakeholders can analyze and understand the final project outcome along with
implications of the LCC analysis. The proposed report consists of purpose, scope, LCC model,
and LCC model analysis, discussion in addition to analysis (Kahn and Lemmon 2016). After the
report is prepared, results are reviewed properly to identify if there are any risks within the LCC
analysis. Accuracy of the LCC analysis is done properly so that there are no risks and issues
results into failure of the project work.
Campbell, Jardine and McGlynn (2016) stated that LCC analysis is considered as cost for
the asset based on water supply system through the life cycle which performs the presentation of
the project necessities. LCC is used throughout the following stages of the project life cycle of
the selected water supply system or water pipeline network asset:
Project management investment along with planning: It consists of planning of the life
costing or life cycle cost along with strategic analysis of the water supply system.
Design and construction: During the expansion of the proposed system, LCC analysis is
done for the functional and operational requirement of the proposed asset (Sahin et al. 2016).
The water supply system is divided based on the functions of water facilities, water
treatment, transmission of water, water supply along with water distribution facilities. The scope
of water facilities is to include of structure related to civil engineering for each of the water
supply system, water pipeline, and machinery facilities (Marlow et al. 2013). The inventory is
used by means for LCC analysis. The flow chart to establish the asset inventory is being shown
as follows:

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LIFECYCLE AND RISK MANAGEMENT
Collection of open
source
Collection of field
source
Data Analysis
Data Supplement
Detailed
investigation
Acquire of cost Do not have
acquired cost
Estimation of
acquired cost
Data classification
Construction of
inventory
Selection of items
Figure 2: Flow chart for the construction of inventory
(Source: Marlow et al. 2013, pp- 7159)

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LIFECYCLE AND RISK MANAGEMENT
LCC Analysis for water
supply system
Installation
cost
1. Install the
pipeline
2. Install of
other
equipments
Repair
cost
1.
Pipeline
repair
2. Design
of
documen
tation
Leakage
cost
1.
Pipeline
leakage
2. Water
leakage
Replacement
cost
1.
Operational
analysis
2.
Documentati
on
Pumping
cost
1. Pump
operation
2. Power
cost for
pumping
Corrosion
cost
1. Pipeline
failure
2. Failure
into water
system
Energy
cost
1. Cost
of
water
2.
Filtrati
on
Figure 3: Cost breakdown structure for the water supply system
(Source: Kahn and Lemmon 2016, pp- 17)
Into the project study, the water supply system is divided into water supply pipelines
which are used for developing the pipeline structures for sake of Dubai’s growth of population.
The facilities of water pipeline is accounted for most of the water supply system which are
grouped for functioning of the pipes, transmission of pipeline, distribution of pipes along with
supply pipes (Sahin et al. 2016). Valves are also playing a key role into installation of the water
pipeline through complete water supply system asset. Apart from the collection of exacting area
into water supply system, for the purpose to install of pipeline network, the construction work is
based on type of pipe, water transmission facilities, and water distribution facilities in addition to
water supply facilities. Based on the theoretical assessment of the water supply system, it is

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LIFECYCLE AND RISK MANAGEMENT
installed into Dubai to provide water to the population. While analyzing of the proposed system
into this particular study, facilities related to water treatment is excluded to be based on water
pipeline network (Shin, Joo and Koo 2016). Establishment of the account of the water supply
system is also prioritized in this particular study.
Clay and Fong (2013) mentioned some of the methods to analyze existing piping system.
One consists to observe the operation of piping system and second is to perform detailed
calculation of diameter of pipe. The first method is based on observing the operations and
functions of piping system and second method deals with creation of mathematical model of
piping system. After that, pressure is calculated and also flow rates in the LCC model (Campbell,
Jardine and McGlynn 2016). Observation of piping system permits to view of actual work of
proposed system but operational requirements are limited to amount of experimentation. By
development of model of the piping system, it is easy to consider the system alternatives, but the
model is validated to present the operating piping system. The entire life cycle cost analysis for
pipeline network is needed to measure and calculate of long term cost for installation, protection
and improve of the chosen water supply system. Vilanova, Magalhães Filho and Balestieri
(2015) argued that in order to raise competence of management into water supply system, the
inventory elements are categorized into such a way that the waterworks manager requires to
replace, repair and rehabilitate. Water supply system is being divided into pipelines, facilities of
distribution in addition to pump stations.
Strategic decision making is used to identify of asset management policies as well as
optimal longer term investments which are arrived to conduct of life cycle analysis on the current
project work. Technological advancement is done to develop the infrastructure of water supply
system (Sahin, Stewart and Porter 2015). Estimation of the life cycle costing is done by means

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LIFECYCLE AND RISK MANAGEMENT
to do proper project scheduling in addition to planning with maintenance of the water
infrastructure project work (Scholten et al. 2015). Therefore, LCC analysis is important for the
project.
3.0 Identification of the benefits doing life cycle costing in lifecycle
management of selected asset
Life cycle cost approaches is evolved from the project appraisal tool to incorporate of
sustainable developmental aspects into water infrastructure industry. LCC analysis is considered
as broader sustainable development framework. In order to carry out life cycle cost analysis into
this particular project work, water supply system is vital for the purpose to carry out (Campbell,
Jardine and McGlynn 2016). The aim of proposed system is to carry of water to the customers at
proper cost so that there is overcome of water contamination risks. LCC analysis is conducted on
number of water supply system to provide reliable information to the project manager to take
proper project related decisions related to asset management risks. Based on development of
water pipeline network, it is required to meet current standards which raise both design,
operational and analysis cost of the project work (Renuka, Umarani and Kamal 2014). LCC
analysis for the water pipeline network is needed to compute and estimation of long term cost for
the purpose of fixing, continuation as well as upgradation of the chosen asset. The
documentation is done based on the project requirements. While analyzing of the proposed water
supply system into this particular project study, facilities related to water treatment is expelled to
focus on water pipeline network.
By analyzing the life cycle costing into selected asset, it is observed that it benefits the water
infrastructure industry by bring out of product as well as process development into sustainable

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LIFECYCLE AND RISK MANAGEMENT
directions. The industry can harvest of benefits related to environmental, health, safety and risk
management. Incorporation of the life cycle as well as sustainability management can lead to
brand value of the selected water industry (Clay and Fong 2013). The full amount price of
ownership of chosen asset is far superior as contrasted to preliminary capital outlay of the cost
and it is varied among alternative solutions and operational requirements. The project manager
considered each different cost and analyzed the life cycle to get possible information such as:
a) Assessing of the future resource requirements
b) Assessing of the comparative cost of probable acquisitions
c) Deciding among sources of supply (Pikaar et al. 2014).
d) Accounting for the resources used currently and in past
e) Improvement over system design
f) Optimization of operational and support of maintenance, understanding of the input
requirement (Monczka et al. 2015).
g) Assessing of the assets reach end of economic life and understanding of manpower
and water utilities
h) Improvement over risk management
i) Improvement over cost monitoring (Gurung et al. 2016).
j) Optimization of long term cost
For effective management of the selected asset of water supply system for pipeline
facilities, the cost is estimated through entire life cycle with use of LCC analysis. The main
factors of LCC analysis are establishment of LCC analysis, formulation, construction, and main
factor of LCC, verification of economic efficiency and definition of the lifespan. LCC analysis is
determined for different functions and life cycle phases-costing along with accumulating of the

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LIFECYCLE AND RISK MANAGEMENT
cost for entire life cycle (Zhang, Kuczera and Kiem 2015). LCC model is used into water supply
system asset for determining the future cost which is associated with development of water
pipeline network. Analysis of the water supply system cost provides better presentation of
resources, cost for designing, installing, maintaining and procuring activities. Life cycle costing
is utilized by the industry to provide information related to maintenance, installation and
development of water pipeline network. Alternative solutions of proposed system are resulted
into lowering LCC which have significant benefits into the industry (Vilanova, Magalhaes Filho
and Balestieri 2015). It is benefited into that area where capitals funding along with limitation of
resources are there. The industry builds a cost database to approximate the project life cycle cost.
Maintenance along with development activities are carried out into 5 years of planning cycle.
Lee et al. (2017) cited that LCC analysis helps the project manager to measure long term
economic benefit of the industry’s assets. When there is assessment of total price of ownership
over life cycle of assets, then it gets better of the bottom line of the organization. The completion
of life cycle cost analysis for water pipeline network has following benefits such as:
i. The project manager utilizes the LCC analysis for examining the best way to
estimate the future budget. The true cost of water pipeline asset is more than
initial purchase cost. It serves for economic viability for each of the life cycle of
selected asset (Godfrey and Hailemichael 2017).
ii. It permits to perform analysis of entire business functions. It will investigate the
entire functional area of water infrastructure industry where there is higher
resource consumption.
iii. This LCC analysis identifies the time of cash flow for selected asset.

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LIFECYCLE AND RISK MANAGEMENT
Life cycle cost planning
Model
application
Development
of LCC model
Plan/Analysis Review
Model application Review
Life cycle cost managing
iv. It also performs better management of project resources and costs (Fuchs et al.
2014).
v. LCC analysis reviews impact of industry’s policies on asset life cycle (Zhang,
Kuczera and Kiem 2015).
vi. LCC analysis identifies preferred options to upgrade and meet with operating
conditions.
Figure 4: Procedures for LCC analysis model
(Source: Zhang, Kuczera and Kiem 2015, pp-833)
With use of LCC analysis, the first step is to estimate the operations and functions of
water supply system. It also determines why control valve is failed; then it is done to identify the

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LIFECYCLE AND RISK MANAGEMENT
problems. Proper design of water supply system is an element to minimize the LCC analysis
(Zhang, Kuczera and Kiem 2015). The system consists of pump, installation of pipeline, driver in
addition to operating controls. Proper design consists of interaction among pipeline installation
and entire water supply system. The characteristics of water supply system are measured to
determine needed performance of the pipeline network. Installation as well as operational cost is
dependent on diameter of pipe in addition to workings of the piping system (Kahn and Lemmon
2016). The diameter of pipe is based on some factors: economy of installation needed lower flow
velocity for application, needed minimum diameter for application, maximum flow velocity to
reduce erosion into piping and plant standard diameter of pipelines.

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LIFECYCLE AND RISK MANAGEMENT
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