Where do we want to go?Economic dimension of sustainability along life cycle is captured by life cycle costing (LCC):
Where do we want to go? Economic dimension of sustainability along life cycle is captured by life cycle costing (LCC) Environmental Impacts (GWP, energy, Eco-indicator, etc.) ¥
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€ Life Cycle Costing :
Cost estimation for - product andamp; process development,
- purchasing, - sales andamp; marketing, - etc. Social aspects
The Concept of Life Cycle CostingAssessing present and future money flows within the economic system:
e.g., fuel tax (externality that is (partially) internalized) e.g., CO2 certificates (will be (partially) internalized) Source: Rebitzer, G.; Hunkeler, D.: Life Cycle Costing in LCM. International Journal of LCA 8 (5), 2003, p. 253 The Concept of Life Cycle Costing Assessing present and future money flows within the economic system
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Life Cycle Costing (LCC) is as an assessment of all costs associated with the life cycle of a product that are directly covered by any one or more of the actors in the product life cycle (supplier, producer, user/consumer, EOL-actor), with complimentary inclusion of externalities that are anticipated to be internalized in the decision-relevant future. Definition of LCC A tool for comparative cost estimations Source: Rebitzer, G.; Hunkeler, D.: Life Cycle Costing in LCM. International Journal of LCA 8 (5), 2003, p. 253
Drivers and OpportunitiesWhat can you do with comparative cost estimations along the life cycle?:
Drivers and Opportunities What can you do with comparative cost estimations along the life cycle? Optimize product and process planning andamp; development (Randamp;D), purchasing decisions, etc overall costs can be anticipated
Exploitation for sales and marketing (integrate use and end-of-life performance of products and services) demonstrate life cycle performance in economic terms customer focus
To identify trade-offs and economic-environmental win-win situations
To support internal decision-making in corporate context information on costs can be easily communicated to management mid- and long term implications of decisions positioning on the market
Facilitating communication between internal decision-makers and external stakeholders
Success FactorsIntegration of life cycle thinking at all relevant levels within a firm:
Success Factors Integration of life cycle thinking at all relevant levels within a firm Life cycle costing should be based on LCA (simplified or detailed) consistency ensured Life cycle inventory data model of LCA can be efficiently reused elements for sustainability assessments are created
Results have to be usable for different functions (Randamp;D, sales andamp; marketing, management, etc.) integration into existing systems (e.g. Randamp;D stage gate process) adapt specific terminology (talk the language of the receiver) establish specific tools where required
Effective communication of approaches awareness trainings for general audience (why we do this) specific trainings for users of tools
Establish a data structure compatible with existing data management systems data have to be easily retrievable from existing systems