Best Practice - Life-Cycle-Cost Management

Many products have long lives and a significant part of the costs are incurred after sales (design, engineering, procurement, production, assembly, transportation, maintenance, repair and so on).

Cost models and analysis

Cost elements

Investment analysis

LCC as engineering tool

LCC as management tool

After concluding the project the student should know the methodology and main principles of Life-Cycle-Cost Management.     



The student should be able to carry out any cost estimation task using available information, modelling uncertainty, necessary guides and books as well as understand and interpret the results.     



The student will learn about Activity-Based Costing, various Life-Cycle Costing methodologies, Monte Carlo simulations, modelling uncertainty, Economic Profit calculations as well as Net Present Value estimations.  The student will learn how to combine these approaces to produce the best overall cost management advice to a decision-maker.

The course is given during one week, and is organized with lectures on background topics and an introduction to a case study. The case study will then be solved individually or in groups and documented in a project report. The total workload for the course is expected to be 2 weeks including independent research and literature survey supporting the project work.Grading will be based on the project report, and will assess the candidate(s) ability to interpret, familiarize, reflect and apply the course topics.