ABSTRACT
By using the notion of Life Cycle Cost (LCC), the objective of cost-effectiveness for a given system is considered from a total system life cycle perspective. LCC analysis is oriented towards long term economic factors in the life cycle of a generic system, rather than trying to save money in the short term by simply purchasing systems with lower initial acquisition costs. Cost data management should be based on realistic schedule information; understanding the factors that affect programmes cost is essential for capturing the right data. Life cycle costing has been recognized as a data driven process. With regard to the time, effort and resources expended, collection of data is a major part of LCC studies. Execution of LCC analyses establishes a critical reference point in performing the entire subsequent procedure. Users concerned should be allowed to review analysis results to confirm that their needs are correctly interpreted and satisfactorily fulfilled.
