ABSTRACT
Life Cycle Costing, LCC, is the process of economic analysis to assess the total cost of ownership of an asset, including its cost of procurement, installation, operation, maintenance, conversion, and decommission. LCC can be used to choose the best alternative among a set of options.
Every organization is a combination of various interrelated departments. Every department has its own set of objectives and targets. Even though all departments try to achieve the organization's overall objective, but in reality they work to protect their departmental interests. In many cases, it becomes detrimental to the health of the organization. This conflicting behaviour increases when decisions are taken on subjective considerations. When a company's strategy works on an objective platform, chances of conflict are reduced. Life Cycle Cost Analysis (LCCA) can be used as a management decision tool for synchronizing divisional conflicts by focusing on facts, money, and time.
This book explains an innovative simple model to carry out LCCA.
