Life Cycle Cost, LCC
LCC is a tool to calculate
the economic costs caused by a product or a service during its entire life
cycle, from purchase of raw material and components, cost of production and
investments to usage, maintenance and waste management. There are no
international standards for LCC.
The
scope of LCC studies is mostly more limited than the scope of LCA studies. An
LCC study may for example start at the gate of suppliers, where raw material
extraction and refining processes are not accounted for. In most cases, LCC
studies end at the part of the life cycle where costs for waste management
occur. Thus, LCC studies consider purchase, maintenance, use and end-of-life
handling costs of the product.
LCC is
particularly suitable for evaluation of design alternatives that satisfy a
specified performance level. An LCC may show that different alternatives have
different investment, operating, maintenance or repair costs, and possibly
different life spans. LCC can be applied to any capital investment decision. It
is most relevant when high initial costs are traded for reduced future cost.
You can find LCC
software under the main menu: Software.
|
