Life Cycle Cost Analysis (LCC)

Life-cycle cost (LCC) analysis is a method for assessing the total cost of system ownership. It takes into account all costs of acquiring, owning, and disposing of a system. Analysis is useful when system or project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings.

LPS performs LCC to reflect the total cost of ownership over the life of an asset (cradle to grave) by considering:

  • Acquisition cost
  • System operating including maintenance cost
  • Training cost
  • PHS&T and distribution cost
  • Supply support cost
  • Test and support equipment cost
  • Reliability cost
  • Technical data cost
  • Residual values (disposal, recycling , salvage values or disposal cost)