Lifecycle Cost Analysis is a technique to assess the likely cost of an item over its life (or portion of its life) to support cost related decisions. Lifecycle Cost Analysis can compare different asset solutions, as well as different maintenance, operations, enhancement and disposal scenarios for the same asset solution. Undertaking Lifecycle Cost Analysis to support major capability enhancement decisions assures that financial elements are considered, as well as technical. It supports organisations in finding a balance between cost, risk and performance when they are choosing asset and management solutions.
Capability Partners also use Life Cycle Costing analysis to support the development of related revenue projections and associated analyses such as Activity Based Costing techniques.
Capability Partners can support organisations to:
- Identify cost drivers
- Develop Lifecycle Cost Models
- Develop revenue/income models
- Use data to reduce Whole of Life costs, that is, develop the capability to support continuous improvement
- Support capability/technology selection
- Undertake manufacturability assessments
- Compare Warranty incentive schemes
- Support decision trade-offs
- Support repair-replace decisions
- Retirement cost impact
Capability Partners considers cost and revenue in Asset Management activities and has used Lifecycle Cost Analysis to assure organisations choose the most appropriate capability and management options for their context at every stage of the lifecycle.