How to perform an LCC
ABB have, within Dantes, developed five combined LCC-LCA tools, as described
in the working procedure. These are used as sales support tools.
The experiences from developing these tools are
- The process takes longer time than anticipated, both in calendar time and
in work time, due to the number of people that have to give feedback and
input.
- One has to include the stakeholders early in the discussion to ensure that
one is on the right track
- One has to discuss with many different stakeholders (some with conflicting
views, some with negative view)
- One has to be prepared to change the objectives as the work goes
forward
- Once the tool is developed it has to be reviewed by stakeholders in
several cycles
- Feedback from customers is very valuable when developing a sales support
tool
- Even if the tool fulfill the expectations the immediate success is not
guaranteed
- Environmental evaluation of differences played a minor role in this work
but received some interest
Tool
Under heading "Tools & Methods"/"Software" on
Dantes.info a simple, excel-based LCC tool (LCCLight)
is available for download. This excel tool can be modified to suit your specific
needs.
Publications - general experience
Publications - experience and descriptions of tools
Business value
It is good business to understand the cost structure of your product system
since efficient improvement actions could then be taken. Business relevant cost
information could be selected for use in market communication.
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