Life Cycle Cost Analysis
Life cycle cost (LCC) analysis investigates which alternative existing or possibly planned manufacturing method or plant would be the most economical to utilize in production.
LCC investigates which current unit processes create unnecessary energy and material costs, or replacement and breakdown costs.
Life cycle cost can be calculated for a product, individual process, production lines or manufacturing units such as factories.
Life cycle cost (LCC) analysis is used to understant the economic costs in addition positive and negative risks throughout product life cycles.
Life cycle cost analysis gives further support to decision-making and links environmental aspects (LCA) with business finance.
LCC can be used as a standalone method to assess environmental and economis performance of a product, individual process etc.
Life cycle cost calculation can also be a part of broader comparative cost analysis between different options. It can be made at the same time with the carbon footprint calculation or the assessment of other environmental impacts.