A Literature Review of Life Cycle Costing in the Product-Service System Context

Kambanou, Marianna Lena; Lindahl, Mattias

doi:10.1016/j.procir.2016.03.054

Cited by 27 publications

(19 citation statements)

References 31 publications

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“…These findings seem to be consistent with other LCC scholars that have done study on LCC in the past, i.e. Kambanou and Lindahl (2016) and Bengtsson and Kurdve (2016).…”

Section: Methodssupporting

confidence: 92%

A Review on the State of Cost Data Inputs of Life Cycle Cost (LCC) for Rigid Pavement Maintenance and Rehabilitation in Malaysia

Jasmi

Ayob

Rashid

et al. 2018

JDBE

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Many scholars asserted that LCC plays an important role in the cost estimation of rigid pavement due to high construction, maintenance and reconstruction costs in Malaysia. Due to high budget allocation and expenditure on the maintenance and rehabilitation works of pavements in Malaysia by the government, it is crucial for the transportation agencies to optimize the budget allocation and select the most cost-effective pavement maintenance and rehabilitation alternatives. LCC is a useful economic assessment technique that compares the cost-effectiveness of different maintenance and rehabilitation approaches within the same road pavement type. However, in order to produce a comprehensive and reliable LCC output, there is need to ensure the cost data inputs is ready and quality enough to be used in the LCC estimation. This paper presents the outcomes of the comprehensive literature review on the state of cost data inputs for LCC analysis of rigid pavement maintenance and rehabilitation in Malaysia. The outcomes of the literature study have established that the majority of the construction industry key players are aware LCC analysis should be practiced in the rigid pavement maintenance and rehabilitation. However, the current state of LCC practice of rigid pavement maintenance and rehabilitation in Malaysia is still at the infancy stage and unready to be implemented due to the difficulties in attaining quality cost data for generating a comprehensive and reliable LCC analysis. The findings provide information on the current state of cost data inputs of LCC analysis of rigid pavement maintenance and rehabilitation in the Malaysian construction industry.

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“…These findings seem to be consistent with other LCC scholars that have done study on LCC in the past, i.e. Kambanou and Lindahl (2016) and Bengtsson and Kurdve (2016).…”

Section: Methodssupporting

confidence: 92%

A Review on the State of Cost Data Inputs of Life Cycle Cost (LCC) for Rigid Pavement Maintenance and Rehabilitation in Malaysia

Jasmi

Ayob

Rashid

et al. 2018

JDBE

View full text Add to dashboard Cite

show abstract

“…LCC-and TLC-based estimations have been criticized in the literature (see: Ref. [51]) due to the difficulty of systematically collecting input data for the analysis [52]. Customers or supply chain partners might not be eager or capable to share relevant data due to lack of trust, lack of technological support, or absence of motivation for sharing [53,54].…”

Section: Pss Cost Engineering: Insights From the Systematic Literaturmentioning

confidence: 99%

At the origins of Product Service Systems: Supporting the concept assessment with the Engineering Value Assessment method

Rondini

Bertoni

Pezzotta

2020

CIRP Journal of Manufacturing Science and Technology

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Manufacturing companies are increasingly moving toward delivering combinations of products and services to provide higher value to their customers. The development of such Product Service Systems (PSS) escalates in complexity when several products developed by different suppliers need to be integrated into a unique system. For first tier suppliers, it is a great challenge to model and simulate the impact of changing design variables at the micro-level on both hardware properties and governing behaviors of services over the entire life-cycle of the PSS. The paper describes a model-based approach developed to estimate the life cycle cost of a PSS hardware already at a concept design stage. The proposed approach computes the relative cost efficiency of a set of design variants using as input the data generated by the simulations run in the Computer Aided Engineering (CAE) environment. The approach allows the exploration of the design space of a PSS given by the variation of the geometry of a Computer Aided Design (CAD) model, building on the computation of customized cost modules selected by a generic list of PSS cost dimensions. For each evaluated design case, the model produces as output a unique monetary figure of the cost expected to incur by owning or using the asset throughout the lifetime. The work has been conducted in collaboration with a tier-one aerospace component manufacturer, and the application of the model is exemplified through a case study related to the development of a turbine rear structure (TRS) for commercial jet engines. The approach is most suitable for the development of complex systems in which new products and components are integrated into a shared product platform. The results are discussed in relation to the current literature on PSS cost engineering, highlighting challenges to be addressed to increase cost estimation accuracy and increase uncertainty identification and awareness.

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“…A noteworthy limitation of LCC is that most costs are estimates and the value of money changes over time therefore there is inherent uncertainty especially when services are included (Erkoyuncu et al, 2011). Research into minimizing and classifying this uncertainty is ongoing (Kambanou & Lindahl, 2016).…”

Section: Lcc and The Financial Perspectivementioning

confidence: 99%

Using life cycle costing (LCC) to select circular measures: A discussion and practical approach

Kambanou

Sakao

2020

Resources, Conservation and Recycling

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The implementation of circular measures in businesses constitutes a solution to future resource scarcity, which has yet to gain momentum. To select and implement such measures, companies, with limited resources need practical and easy-to-use guides that help them understand the financial outcomes while leading them towards more circular solutions. To this end, a guideline based on Lifecycle Costing (LCC), which fulfils the aforementioned criteria, has been created. The guideline directs the companies towards measures at the top of the CE hierarchy and LCC is used to assess profitability and provide information on material circularity. Its development follows the Design Research Methodology (DRM) and is based on using LCC at three case companies when selecting circular measures and on literature. Insights on the companies' process and decision criteria as well as the LCC results are presented. One identified critical criterion is the profitability of a circular measure, but comparing the LCC of alternatives is only an adequate measure of profitability, if the alternatives are functionally equivalent and of equal value for the customer, otherwise revenue and customer costs need to be compared as well. In addition, because labour is included in LCC, by categorizing the costs companies can be guided towards exchanging material costs with labour costs. Concerning circularity, in this comparative context, the difference in material cost between the alternatives can be used to measure circularity performance without additional effort. Finally, customization of products was also identified in the company research as a barrier to the implementation of various circular measures.

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A Literature Review of Life Cycle Costing in the Product-Service System Context

Cited by 27 publications

References 31 publications

A Review on the State of Cost Data Inputs of Life Cycle Cost (LCC) for Rigid Pavement Maintenance and Rehabilitation in Malaysia

A Review on the State of Cost Data Inputs of Life Cycle Cost (LCC) for Rigid Pavement Maintenance and Rehabilitation in Malaysia

At the origins of Product Service Systems: Supporting the concept assessment with the Engineering Value Assessment method

Using life cycle costing (LCC) to select circular measures: A discussion and practical approach

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