Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies.
Journal article, 2019

Even if practitioners want to adopt new manufacturing technologies, there is a lack of comprehensive tools to support their decisions, regarding both cost and sustainability. This paper reviews and compares the practical use of Life Cycle Costing (LCC) with a performance part costing (PPC) model, chosen based upon the criteria of providing in-depth analysis capabilities and the prospect of integrating cost and sustainability assessment. A case study of a Swedish gear manufacturer is selected, where the company investigates adoption of a new manufacturing technology. Since, this type of decision requires heavy investments e.g. in new machines, tools, linking performance with costs would be a prerequisite for performing well-informed decisions. Based on interviews, the level of detail requirements e.g., performance indicators, when acquiring new technologies are identified. LCC model cost parameters are compared with the PPC cost drivers and the data availability and estimation are discussed.

Life Cycle Costing (LCC)

Decision Support System (DSS)

Performance Part Costing (PPC)

Gear Manufacturing

Author

Babak Kianian

Lund University

Martin Kurdve

Chalmers, Technology Management and Economics, Supply and Operations Management

Carin Andersson

Lund University

Procedia CIRP

22128271 (ISSN)

Vol. 80 428-433

CiMMREC – Circular models for mixed and multi material recycling in manifacturing extended loops

RISE ivf, 2016-08-01 -- 2020-03-01.

Circular material flows

Chalmers, 2017-08-21 -- 2019-08-21.

Subject Categories

Production Engineering, Human Work Science and Ergonomics

Manufacturing, Surface and Joining Technology

Other Engineering and Technologies not elsewhere specified

Driving Forces

Sustainable development

Areas of Advance

Production

DOI

10.1016/j.procir.2019.01.025

More information

Created

5/10/2019