Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement (2017)

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98 Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement Inventory—In accounting terms, inventory is a record of current assets, which includes prop- erty and equipment owned (counting parts in stock, value of work in progress, and work completed but not sold). In maintenance terms, it is frequently used to describe the list of equipment and spare parts currently held in stock. Inventory Analysis—Involves the collection of data about the products or services being inves- tigated, and quantification of relevant material and energy inputs and outputs. Inventory Management—The process by which inventory is controlled. Typically, this includes tracking usage of stock items, optimization of stock levels, and control of costs. ISO (International Organization for Standardization)—Organization known for producing and publishing international standards for all subject areas in the world. This organization forms a network between both the public and private sectors as it is not a government organization. K Key Performance Indicator (KPI)—Quantitative or qualitative indicator of the quality of service, efficiency, productivity, or cost effectiveness of an agency, program, or activity that enables a comparison to be made for management purposes of performance against a stan- dard target or norm. It may be a quantitative measure or qualitative indicator of performance. L Large Hub Airport—Commercial service airports that have more than 10,000 passenger board- ings each year and 1 percent or more of total passenger boardings within the United States in the most current calendar year ending before the start of the current fiscal year. Level of Service—Level of asset service determined by both the quality and the quantity of services provided by an asset under consideration. OR The defined service quality for a particular activity or service area against which service perfor- mance may be measured. Service levels usually relate to quality, quantity, reliability, responsive- ness, environmental acceptability, and cost. Life Cycle—The life of a project/product/system from its conception through to end of life, decommissioning or disposal. Life-Cycle Assessment (LCA)—A systematic set of procedures for compiling and examining the inputs and outputs of materials and energy and the associated environmental impacts directly attributable to the functioning of a product or service system throughout its life cycle. Life-Cycle Costing—Sum of all recurring and onetime costs over the full lifespan or a specified period of an asset under consideration. Life-Cycle Cost Analysis—Any technique that allows assessment of a given solution, or choice from among alternative solutions, on the basis of all relevant economic consequences over the service life of an asset. Life-Cycle Process—Cycle of activities that an asset goes through while retaining an identity as a particular asset. M Maintenance Managed Item (MMI)—The lowest level of an asset’s physical structure that is to be recognized within an asset register where the registry is structured as a nested hierarchy of