An activity based life cycle cost analysis framework to examine the economic assessment of malaysian petrochemical industrial wastewater treatment /
Muhammad Ilyas,
An activity based life cycle cost analysis framework to examine the economic assessment of malaysian petrochemical industrial wastewater treatment / Muhammad Ilyas - xvii, 252 pages : illustrations ; 30 cm. + 1 CD-ROM
Faculty of Industrial Management
Thesis (Doctor of Philosophy) -- Universiti Malaysia Pahang - 2025
Includes bibliographical references
Malaysia has made it mandatory for industries to have wastewater treatment plants and made regulations to ensure the discharge of environment-friendly and safe water. Since wastewater treatment is mandatory in petrochemical industries, its economic, environmental, and social sustainability should be properly assessed. Although Life cycle costing is a well-established economic estimation method that evaluates the entire cost of a process over its operating life, Malaysia still lags in the implementation of LCC in its industrial sector. The reason that hinders the use and applicability of LCC is the absence of a widely established framework, commonly agreed methodology and standardized approach. Although certain industry-specific standards for LCC are available, the technique is still criticized for being complicated, expensive, data-intensive, and inherently imprecise. Against this backdrop, this study aims to fill the research gaps mentioned above by developing, applying, and validating a simplified Activity-based LCC framework for WWTPs of petrochemical industries in Malaysia's context. The methodology is based on Saunders' research onion taking pragmatism as underpinning philosophy and the thesis is organized in three phases based on the design science research approach- Develop, Demonstrate and Validate. The proposed ABLCC framework consists of eight steps which are the purpose and scope of life cycle cost analysis, definition of cost categories, identification and classification of activities, identification and quantification of resources, developing an activity-based costing model, data collection, estimation of ABLCC and finally conducting Monte Carlo Simulation. These steps are applied to a petrochemical WWTP. Activities are identified and classified into main and auxiliary activities. The separate cost for the primary, secondary, and tertiary treatment is calculated, and future LCC is estimated for a period of thirty years using the discounted cash flow method. The deterministic LCC is then converted into the probabilistic LCC using Monte Carlo Simulation. The results confirm that WWTP operations classified as primary treatment activities consume more cost (36.7%) followed by secondary treatment activities (33.5%) and tertiary treatment activities (24.4%), respectively. Furthermore, the yearly mean of probabilistic NPC is higher than the yearly deterministic NPC showing upward uncertainty. Finally, the proposed ABLCC framework is validated through qualitative and quantitative methods. The implementation of the findings of this research within the industry would provide the much-needed long-term benefit that comes with the formalization of life cycle costing practice.
THE0010356 (Local)
Faculty of Industrial Management--Dissertations
Universities and colleges--Dissertations
Theses--Dissertations
An activity based life cycle cost analysis framework to examine the economic assessment of malaysian petrochemical industrial wastewater treatment / Muhammad Ilyas - xvii, 252 pages : illustrations ; 30 cm. + 1 CD-ROM
Faculty of Industrial Management
Thesis (Doctor of Philosophy) -- Universiti Malaysia Pahang - 2025
Includes bibliographical references
Malaysia has made it mandatory for industries to have wastewater treatment plants and made regulations to ensure the discharge of environment-friendly and safe water. Since wastewater treatment is mandatory in petrochemical industries, its economic, environmental, and social sustainability should be properly assessed. Although Life cycle costing is a well-established economic estimation method that evaluates the entire cost of a process over its operating life, Malaysia still lags in the implementation of LCC in its industrial sector. The reason that hinders the use and applicability of LCC is the absence of a widely established framework, commonly agreed methodology and standardized approach. Although certain industry-specific standards for LCC are available, the technique is still criticized for being complicated, expensive, data-intensive, and inherently imprecise. Against this backdrop, this study aims to fill the research gaps mentioned above by developing, applying, and validating a simplified Activity-based LCC framework for WWTPs of petrochemical industries in Malaysia's context. The methodology is based on Saunders' research onion taking pragmatism as underpinning philosophy and the thesis is organized in three phases based on the design science research approach- Develop, Demonstrate and Validate. The proposed ABLCC framework consists of eight steps which are the purpose and scope of life cycle cost analysis, definition of cost categories, identification and classification of activities, identification and quantification of resources, developing an activity-based costing model, data collection, estimation of ABLCC and finally conducting Monte Carlo Simulation. These steps are applied to a petrochemical WWTP. Activities are identified and classified into main and auxiliary activities. The separate cost for the primary, secondary, and tertiary treatment is calculated, and future LCC is estimated for a period of thirty years using the discounted cash flow method. The deterministic LCC is then converted into the probabilistic LCC using Monte Carlo Simulation. The results confirm that WWTP operations classified as primary treatment activities consume more cost (36.7%) followed by secondary treatment activities (33.5%) and tertiary treatment activities (24.4%), respectively. Furthermore, the yearly mean of probabilistic NPC is higher than the yearly deterministic NPC showing upward uncertainty. Finally, the proposed ABLCC framework is validated through qualitative and quantitative methods. The implementation of the findings of this research within the industry would provide the much-needed long-term benefit that comes with the formalization of life cycle costing practice.
THE0010356 (Local)
Faculty of Industrial Management--Dissertations
Universities and colleges--Dissertations
Theses--Dissertations