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The Method of Life Cycle Costing Applied to Manufacturing Systems

: Westkämper, E.; Osten-Sacken, D. von der

Production Engineering. Research and development in Germany. Annals of the German Academic Society for Production Engineering 7 (2000), Nr.1, S.135-138
ISSN: 0944-6524
Fraunhofer IPA ()
Produktlebenszyklus; product life cycle; Life Cycle Costing; Produktentwicklung; Kostenrechnung; Fertigungssystem

Life Cycle Costing (LCC) supports the adaptation of product features of both consumer and capital goods to their respective life cycle. The costs of production, installation, usage and disposal are analyzed and allocated with the aim of minimizing the total cost. A new method of calculating the life cycle costs of capital goods, such as machines and manufacturing systems, is presented in this paper and is expected to predict the life cycle costs. Single processes connected to the product's life cycle are represented and described in a potential-, program- and process-related way by the above mentioned life cycle costing method. Focussing on the redesign of current product structures, it is possible to derive approaches from the life cycle cost structures and potentially create new operational and maintenance concepts, as well as new financing models and cooperation forms.