6Life Cycle Framework and Techniques

DOI: 10.1201/9781003254782-8

6.1 INTRODUCTION TO DEVELOPING LIFE CYCLE MODELS

The specific purposes of using a life cycle cost (LCC) perspective in acquisition management, capital budgeting, product development, product upgrades, and so on include

  • Estimating the total ownership cost (TOC) to the stakeholder and assessing the affordability of the program

  • Reducing and capturing TOC through using LCC trade-offs in the systems engineering and product development process

  • Estimating future expenditures

  • Controlling cost using LCC contractual provisions in procurements

  • Assisting in day-to-day procurement decisions

  • Understanding TOC implications to determine whether to proceed to the next development phase

Get Engineering Economics of Life Cycle Cost Analysis, 2nd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial