Life Cycle Costing
Life Cycle Costing (LCC) is a decision support method involving assessment of the
life cycle economic impacts of business process and infrastructure investments,
product developments and operations. It is intended to provide life cycle based
economic information required to inform and support decisions based on a thorough
investigation of the costs of new processes or products, new technologies, asset
investments, and current and new operations across the life cycle from cradle to
grave
or from concept to termination
.
We have introduced LCC functionality within the Leets application. It incorporates
conventional LCC/TCA methodology and goes further to expand this to include costs
associated with impact on the environment and also costs associated with health
and safety and risks, adapting and using assessment and valuation methods used in
industry. These costs may be considered as contingent costs, resulting from unexpected
events, and the inclusion of these into the LCC tool makes a powerful addition to
the existing methodologies.
From the inclusion of contingent costs, the user can assess the impacts of events
or changes on the life cycle costs of their scheme. This may be either an immediate
cost, or a future cost or liability. We also handle nested and dependant events
where the event results in an increase in the probability of other costs arising.
The LCC tool is able to handle uncertainty, both regarding cost values and also
events that have cost implications, through two pathways:
- Setting uncertain elements to always return a fixed value, either the highest, lowest
or most likely to allow best case, worst case analysis to be performed
- Monte Carlo analysis to examine the probability of costs arising
<-- Download the flyer (PDF).