StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Cost Life Cycle - Essay Example

Comments (0) Cite this document
Summary
A life cycle cost analysis calculates the cost of a system or product over its entire life span. This also involves the process of Product Life Cycle Management so that the life cycle profits are maximised.
Performing an LCCA(Life Cycle Cost Analysis) in the design stage itself makes sure that a project that is economical from all aspects in the long run is chosen…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Cost Life Cycle
Read TextPreview

Extract of sample "Cost Life Cycle"

Download file to see previous pages There are techniques for estimating the cost of choosing the "wrong" project alternative. Deterministic techniques, such as sensitivity analysis or breakeven analysis, are easily done without the need for additional resources or information. They produce a single-point estimate of how uncertain input data affect the analysis outcome. Probabilistic techniques, on the other hand, quantify risk exposure by deriving probabilities of achieving different values of economic worth from probability distributions for input values that are uncertain. However, they have greater informational and technical requirements than deterministic techniques. Whether one or the other technique is chosen depends on factors such as the size of the project, its importance, and the resources available. Since sensitivity analysis and break-even analysis are two approaches that are simple to perform, they should be part of every LCCA.
To identify critical parameters, arrive at estimates of upper and lower bounds, or answer "what if" questions, simply change the value of each input up or down, holding all others constant, and recalculate the economic measure to be tested.
Decision-makers sometimes want to know the maximum cost of an input that will allow the project to still break even, or conversely, what minimum benefit a project can produce and still cover the cost of the investment.
To perform a break-even analysis, benefits and costs are set equal, all variables are specified, and the break-even variable is solved algebraically.
Design optimization on cost basis is also carried out under LCCA to hit upon the model, which would lead to higher performance at lower costs and competitiveness in a systematic and efficient manner. Safety, reliability and cost efficiency can be achieved through design optimization in the pre-launch phase itself.
References
1. www.nianet.org/salectureseries/pdfs/Unal_041106.pdf
2. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Cost Life Cycle Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Cost Life Cycle Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1505736-cost-life-cycle
(Cost Life Cycle Essay Example | Topics and Well Written Essays - 750 Words)
Cost Life Cycle Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1505736-cost-life-cycle.
“Cost Life Cycle Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1505736-cost-life-cycle.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Cost Life Cycle

System Development Life Cycle

As the prototype or demo system is further defined, feedback is elicited from users (Harbison, 1997) Thus, the domain models, reference requirements, and reference architecture are continually validated. The prototype or demonstration system development process provides further validation of these requirements and models and identifies needed refinements.
It can be problematic in the situation where the customer after viewing the prototype considers it to be the final version, satisfies and demands a few more changes without analyzing the back end development complications.
The iterative model is the actual implementation of the Waterfall model, due to which it is termed as a “mini-waterfall model”. The reaso...
9 Pages(2250 words)Assignment

Managing Human Resources: Productivity, Quality of Work Life

Empowering employees and organizing around teams are aimed at BMW for facilitating communication and making it easier for decisions to be made. It helps the company to respond quickly to customer’s needs and it’s competitor’s challenges. It helps them learn to prioritize tasks and reduce job stress. A workforce that is knowledgeable and skilled at doing complex things keeps a company competitive and attracts investments. Improved productivity means fewer people, less money, less time, less space and fewer resources. Bonuses are given to workers on giving superb ideas related to cutting cost savings, as they are directly involved in the production. BMW prefers increased participation from the worker’s side....
6 Pages(1500 words)Assignment

Human Resource Management: Work-Life Balance

Corporate leaders understand that employee's work and family lives rarely inextricably linked. They always have been but today, with increased pressures in both domains, the overlap and the challenges created are increasingly obvious and complex to resolve. Solving the paradox seated in an organization need to be optimally productive and the individuals need to find quality time to meet domestic responsibilities, to establish, maintain and grow relationships and to relax and re-charge, is the great challenge of the new millennium. Most managers have yet to overcome the conundrum for themselves let alone help employees resolve it in their lives.
The prospects for easing the work/ life imbalance dilemma lie, at least in part, i...
10 Pages(2500 words)Assignment

The Use of Logical Framework in the Project Cycle: Is it an Essential Tool

Dijkzeul & Beigbeder (2003: 209) define logical framework as “a tool which provides a structure for specifying the components of a program, and the logical linkages between a set of means and ends”. Thus it describes a project in a logical fashion and is a way of testing the logic of a plan of action. Project work when conceived in the form of a project cycle with consecutive phases simplifies the enormity of the task by tackling each phase of the work as an independent unit in itself. Each stage of development in any project requires the performance of a particular area of the work so that the project is completed in a series of phases (Hira and Parfitt, 2004: 34).

All development agencies have become a...
11 Pages(2750 words)Report

Job Prime Cost

The limitation with fixed costs is that these are uncontrollable as these are normally ‘policy costs’. Fixed cost help in marginal costing in the sense that these costs enable us to identify break-even point, that the contribution needs to cover to reach at ‘no profit no loss’ level.

Variable costs are those costs that change within the same ratio in which the output or production changes. For example, in our study the direct Material cost and direct labour costs are variable cost. We have first calculated the these costs on per cabinet basis and then found total direct material or direct labour cost by multiplying per cabinet cost with total production of400 cabinets. This cost is called ‘...
6 Pages(1500 words)Case Study

Effects of Menopause on Women's Life

It is typically accompanied by some distressing physical and psychological symptoms in women that also impact middle adulthood. There is variation in the age at which menopause occurs; in the USA the average age at menopause is 51 years, but the usual range is 45 to 56 years. For unknown reasons ovaries gradually begin to change on hormone production during a womens mid-30s. In the womens the late 40s, the process speeds up and hormones fluctuate or change more causing irregular periods.

Some womens periods stop suddenly; others experience a perimenopause, a phase of irregular menstruation, and symptoms such as memory disturbance, bloating and feeling tired, that may be troublesome for 5 to 10 years. (Brown, 2002)
...
6 Pages(1500 words)Case Study

Its a Wonderful Life and The Third Man: Messages in Film

The film It’s a Wonderful Life is 1946, World War II, a film by director Frank Capra, starring a beloved American actor, Jimmy Stewart. The film is intended to inspire hope, which might have been sorely lacking in World War II America. The themes of hope, faith, and goodwill are prevalent. Faith is prominent, in that, an angel is sent to guide an earthly human, George Bailey, in his life during a time when the world around him seems to be falling apart. The film begins by establishing the fact that a heavenly hand is needed in the life of the main character, George Bailey (Gehring, Wes, 1988, 135). The segue then is to the young George Bailey, so that the angel, and the audience, can understand who George Bailey is as an adu...
11 Pages(2750 words)Movie Review

Reflecting on Personal Life Experiences Utilizing Sociological Perspectives

The experience would touch on my initiation to my very first educational experience and developing my primary group in school.

Secondly, I would reflect on my studies during elementary years in a small exclusive private school in Vietnam. The next phase I consider of great significance in my academic experience is the privilege given me during my 9th grade to 12th-grade studies in a relatively different culture, in Melbourne, Australia.

Finally, a milestone in this journey through life is the recent migration to the United States to complete my higher education with Chemistry as my major in Evergreen Valley College, San Jose, California.

The evolution of sociology could be traced to the development...
7 Pages(1750 words)Essay

Real Cost of Capital

Also, other academics criticize the models' failure to incorporate other determinants of risks such as firm size, book-to-market ratio, etc. then the plain correlation of the risk of the assets to the market. Despite these criticisms, many practitioners in the corporate world still use CAPM for capital budgeting. These issues are probed in this paper.
CAPM or the capital asset pricing model has been a tool in modern finance that has been extensively used for capital budgeting. The capital asset pricing model is useful in estimating the required return on an equity stock of a company (Perold 2004). Under the principle of finance that rational investors will require higher returns to compensate them when they undertake projects...
8 Pages(2000 words)Assignment

Important Issues of Community Life

Community life has its advantages but also has its limitations to the members and the outsiders.
“The good things we secure for ourselves are uncertain and precious until it is secured for everyone and incorporated into our common life.”-Jane Addams. With society moving faster and more detached to technology, busy schedules, and job changes, it becomes harder and harder to feel a sense of community. This can result in a life of solitude and a lose a sense of belonging. Community life helps extract people out of this solitude life and introduce better, challenging and fun tasks such as participation in acts of kindness. It also provides room for volunteering, meeting neighbors, discussing important issues with othe...
7 Pages(1750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Cost Life Cycle for FREE!

Contact Us