Life Cycle Cost Analysis

1131 Words Sep 1st, 2015 5 Pages
Life Cycle Cost Analysis
James Pappas
Logistics Management and Operations, TLMT 353, Spring 15
American Public University
Professor Ernest Hughes
29 June 2015

Life Cycle Cost Analysis
Life cycle cost analysis (LCCA) is a process of evaluating the costs that can be identified and quantified, to include all factors like acquisition, sustaining, maintaining and final disposition of the item, that can have an impact on the whole system cost during its life span. (Blanchard, 2004). All costs associated are required for an accurate analysis. These areas include research, design and development, production, energy costs, maintenance and support, system retirement and material recycling or disposal activities
…show more content…
During the LCCA the supportability analysis (SA) contains analytical techniques, used to identify and combined to help resolve a issues. The overall mission is to design and manufacture an efficient logistic infrastructure capability, while keeping the pre-determined specifications requirements in mind. (Blanchard, 2004) The Supportability analysis is intended on supporting the development of the design. Also during the analysis process the identification and the need, definition of analysis goals, ground rules and constraints are determined.
Depending on the item being evaluated during the logistics cycle cost analysis determine the test and support equipment required, supply support, Manpower, personnel, and training, facilities, packaging, handling, storage, and transportation , and postproduction support (Blanchard, 2004). The life-cycle cost analysis needs to focus on items that have a cost associated not the design of the product unless the design causes additional cost such as manpower.
The end of the lifecycle of an item is a crucial evaluated because there many costs associated with disposal. Some items require costly processes to remove them from service. Weapons require a demilitization, Batteries require safety and hazardous material process for end of service, and large principal end items such as a truck may require additional cost to remove and retire the item. The cost associated to removal of an item from service and retirement can be

More about Life Cycle Cost Analysis

Open Document