Life cycle costing-design to cost concepts.
Life cycle costing and design is used for evaluation of costs of operation or asset throughout its entire planned life. About 70% of the total costs of ownership are decided at the system definition or conceptual phase. During engineering design and construction a further 20% of the ownership costs are established. Only 10% of the costs can be influenced during the actual ownership phase. Life cycle costing implies the holistic study of economics and operational conditions by the entire designer team in cooperation with manufacturers and users. The approach allows effective and systematic financial planning.
Keywords : costs design economy management