Background - LCC - Life Cycle Costs

LCC (Life Cycle Cost) is a well-known method used in systems engineering, procurement, and other activities where it is of interest to estimate and compare costs for development / investment, acquisition, operation, support and disposal during the life length of a product. This technique can be used for many reasons, but its primary uses are:

• Comparison of competing alternatives
• Long range planning and budgeting
• Comparison of logistics concepts
• Selection among competing contractors
• Decisions about replacement of ageing equipment
• Control over ongoing programs

Normally a single tool or a suite of tools are required that supports all the primary uses of LCC. It could be that different uses of LCC require different cost models, which has given rise to they development of a number of specialised tools where the model is given as input data.

See LCC in the DLO or download these documents in Adobe Acrobat format...
whole life costs definition and details of our Whole Life Cost and Life Cycle Cost Analysis products.