Whole life-cycle costs: a new approach

Abstract

Abstract:The last few years have seen significant improvements in the concepts, methods and general approach to calculating costs. ABC, Target Costing, Strategic Cost Management, functional analysis and costing are mobilising attention. Regardless of which of these approaches we consider, it is always from the point of view of one player whose intention is to benefit from increased knowledge of costs in order to achieve increased control over their value chain and profit margins. This self-centred vision is also present in the PLC (Product Life Cycle costing or cost of the product life cycle) concept, which is firmly anchored in product marketing. We are of the opinion that this type of economic calculation no longer fits our current industrial systems which is based on networks of partners contributing to R&D, manufacturing and services The network of organisations represents a growing complexity, necessitating even more complex costing and management methods than the recent innovations.

A through-life costing methodology for use in product–service-systems

“…Another approach, Total Cost of Ownership (TCO), addresses all the costs of doing business with specific suppliers with the aim of removing inefficiencies while maintaining or enhancing effectiveness (Ellram, 1996). Mévellec and Perry (2006) suggest avoiding lack of transparency in TLC by highlighting the interrelations between the costs incurred within the network of partners involved in enabling the customer to use the services of a product. However, no computational counterpart is provided.…”

Future-proofing governance and BIM for owner operators in the UK

“…Construction needs to drive towards a focus on whole-life cost reduction rather than capital cost reduction, and findings from Mevellec and Perry (2006) and Wang (2011), among others, note the importance of whole-life costing. Furthermore, it was highlighted that standardised solutions need to have embedded agility in their uses so that they can adapt.…”

Proposal for an Architectural Solution for Economic and Environmental Global Eco-Cost Assessment: Model Combination Analysis

“…This section emphasizes the need for integrated information models and expert viewpoints to tackle the evaluation of the cost and environmental impacts over the whole life-cycle of a product or a service. (Mevellec and Perry 2006). They shift from a productive industry (mainly direct costs linked with manufacturing costs) to a cognitive and worldwide networked industry (with major allocations related to indirect costs linked with research and development stages) (Bouin and Simon 2000).…”