Related expressions

Key Performance Indicator.

Explanation

A Life Cycle Cost analysis (LCC) calculates the cost of a system or product over its entire life span. It is an economic evaluation technique that determines the total cost of owning and operating of a particular item (be it a project or a physical object, material or product) over a period of time. It covers all costs related to the information system: initial investments (e.g. equipment, indirect costs), as well as operating cost (e.g raw material costs, energy consumption), maintenance and repairing costs.
The use of Life-cycle cost (LCC) models has become an established method to measure the economical performance of products.

Application/usage in Indisputable KEY

In Indisputable KEY, the quantification of the some of the economic KPIs will be based on the life cycle cost (LCC) method.
All steps in the supply chain will be thoroughly analysed to identify and quantify costs in the different processes. Input from companies in all part of the value chain will be necessary. The quantified KPIs will reflect the economic performance of the wood supply chain and will be used in the final assessment of the project to measure improvements in performance.

Institutions with teaching capabilities

Barringer & Associates, Inc. (US) proposes LLC two-day training course

Available text books and training material

“ Environmental life cycle cost analysis of products ”, Kumaran, D Senthil; Ong, S K; Tan, Reginald B H; Nee, A.Y.C., Environmental Management and Health, Volume 12, Number 3, 2001 , pp. 260-276: the objective of this life cycle environmental cost analysis (LCECA) model is to include eco-costs into the total cost of the products (eco-costs are both the direct and indirect costs of the environmental impacts caused by the product in its entire life cycle).
“How To Justify Equipment Improvements Using Life Cycle Costs & Reliability Principles”, Paul Barringer, P.E. (Barringer & Associates, Inc.), 2005

Handbook “ Life-Cycle Costing Manual for the Federal Energy Management Program ” is a guide to understanding the LCC methods and criteria FEMP (US Federal Energy Management Program) established for evaluating the economics of energy and water conservation and renewable energy projects at Federal facilities. This handbook is online on

“ Life Cycle Cost Analysis Handbook ”, from State of Alaska, 1999