Using life cycle costing for product management
Using life cycle costing for product management

Summary/Abstract: Introducing a case study on product management, this paper applies the Life Cycle Cost (LCC) method to solve a particular problem of design selection in the area of mechanical engineering. It is clearly explained and illustrated that various cost types need to be taken into account, ranging over the whole life of the product from concept to end-of-life, and related to an appropriate unit of utility. In order to achieve maximum effect, such a comprehensive economic analysis should ideally be undertaken at a very early stage of the product’s life cycle, such as its design or even conception. Advanced techniques, including sensitivity analyses and simulations, will typically be required to gain an adequate insight into various processes and uncertainties contained in any realistic life cycle model.

• Details
• Contents