An introduction to the life-cycle costing concept for equipment acquisition, operation, and replacement decision-making. Designing for reliability and determination of optimal maintenance and replacement policies for both capital equipment and components. Topics include: identification of an items failure distribution and reliability function, reliability of series, parallel, and redundant systems design configurations, time-to-repair and maintainability function, age and block replacement policies for components, the economic life model for capital equipment, provisioning of spare parts.