Search results

1 – 10 of over 47000
Article
Publication date: 1 April 1990

George Norman

Defines life cycle costing, which gives rise to Life Cycle Cost(LCC). Defines LCC as “The total cost of the system or productunder study over its complete life cycle or…

5197

Abstract

Defines life cycle costing, which gives rise to Life Cycle Cost (LCC). Defines LCC as “The total cost of the system or product under study over its complete life cycle or the duration of the period of study, whichever is the shorter”. Stresses that LCC can be used at whatever level is chosen (estate or, say, a boiler). Explains the timing and mechanism of measurement. Argues that the application of LCC at an early design stage will greatly enhance system design and operation. Offers other pertinent definitions.

Details

Property Management, vol. 8 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

Book part
Publication date: 23 September 2014

Marc Wouters and Susana Morales

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing

Abstract

Purpose

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.

Methodology/approach

The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.

Findings

The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.

Research Limitations/Implications

The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.

Originality/value

The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.

Article
Publication date: 6 November 2007

Anni Lindholm and Petri Suomala

The purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long‐term cost

6558

Abstract

Purpose

The purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long‐term cost management in an uncertain environment.

Design/methodology/approach

The paper reports a case study conducted in the Finnish Defence Forces. As part of the case study, a life cycle cost model for a case product was developed.

Findings

Activity‐based life cycle cost modeling can provide relevant information for varying product management needs at different stages in the life of a product. Quantification of uncertainty is one of the elements in the modeling that can improve the feasibility of LCC both for cost estimation and tracking purposes.

Originality/value

Only a few empirical studies on life cycle costing have been reported which focus on the defence sector. The paper contributes to our understanding of how LCC can be used in a continuous manner and depicts how LCC can produce a sharpened cost image of a particular product.

Details

International Journal of Productivity and Performance Management, vol. 56 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 31 December 2004

John R. Selman and Rich Schneider

The US National Park Service (NPS) is responsible for the management of some of the most recognisable and notable natural and cultural resources in the USA. To make the…

1774

Abstract

The US National Park Service (NPS) is responsible for the management of some of the most recognisable and notable natural and cultural resources in the USA. To make the case for additional maintenance funding, NPS is instituting lifecycle cost management practices. Over the 50‐year life cycle of the Redwood Information Center at Redwood National and State Parks in Crescent City, California, custodial costs alone will sum to more than the total replacement construction cost for the entire facility. This point illustrates an important aspect regarding the true cost of operating and sustaining physical infrastructure over its life cycle. It also suggests that understanding lifecycle costs is a critical element of effective, long‐term portfolio and asset management. Often, institutional owners of physical assets inadequately assess the true cost of building and owning facilities, typically overemphasising initial construction costs. Lifecycle operations and maintenance (O&M) and capital renewal costs, however, almost always comprise a far greater percentage of total lifecycle building costs. Using actual lifecycle costs for an asset that is owned and managed by NPS, this paper explores the development of full lifecycle costing, highlighting key lifecycle cost drivers, of an information centre at the Redwood National and State Parks.

Details

Journal of Facilities Management, vol. 3 no. 2
Type: Research Article
ISSN: 1472-5967

Keywords

Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance…

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

Article
Publication date: 1 February 1988

D.W. Hoar

The objective of this paper is to give a brief overview of the techniques for lifecycle costing and attempts to make a case for the need for chartered surveyors to become…

Abstract

The objective of this paper is to give a brief overview of the techniques for lifecycle costing and attempts to make a case for the need for chartered surveyors to become more proficient in the use of lifecycle costing techniques. It also considers the importance of the client's role in lifecycle costing; and discusses the assumptions that need to be made about the ‘life of the investment’. The paper also deals with the subject of discounting techniques and how they are influenced by inflation in prices, interest rates and risk. It includes discussion of the various costs and values which need to be considered in any life cycle costing study. In conclusion, there is a brief discussion of how lifecycle costing techniques support an investment appraisal of a number of options that may be open to a client.

Details

Property Management, vol. 6 no. 2
Type: Research Article
ISSN: 0263-7472

Open Access
Article
Publication date: 11 October 2018

Kim Haugbølle and Lau M. Raffnsøe

Sustainable building design suffers from a lack of reliable life cycle data. The purpose of this paper is to compare life cycle costs of sustainable building projects…

3326

Abstract

Purpose

Sustainable building design suffers from a lack of reliable life cycle data. The purpose of this paper is to compare life cycle costs of sustainable building projects, examine the magnitude of various cost drivers and discuss the implications of an emerging shift in cost drivers.

Design/methodology/approach

This paper is based on data from 21 office buildings certified in Denmark according to the sustainable certification scheme DGNB.

Findings

The paper supports previous findings that construction costs and running costs each roughly make up half of the life cycle costs over a 50-year period. More surprising is the finding that the life cycle costs for cleaning are approximately twice as high as the supply costs for energy and water.

Research limitations/implications

The data set is based on actual construction costs of office buildings constructed in 2013-2017. Although all running costs are calculated rather than measured, they are based on a more detailed, specific and industry-supported set of calculation assumptions than is usual for life cycle costing studies because of extensive collaborative work in a number of concomitant national research and development projects.

Practical implications

Authorities, clients and building professionals heavily emphasise energy-saving measures in new Danish buildings. The paper suggests redirecting this effort towards other more prominent cost drivers like cleaning and technical installations.

Originality/value

This paper provides a notable contribution to the academic understanding of the significance of different cost drivers as well as the practical implementation of life cycle costing.

Details

Facilities, vol. 37 no. 9/10
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 1 March 1985

Yash Gupta and Wing Sing Chow

This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and…

Abstract

This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and provides 667 references.

Details

International Journal of Quality & Reliability Management, vol. 2 no. 3
Type: Research Article
ISSN: 0265-671X

Book part
Publication date: 29 March 2016

Marc Wouters, Susana Morales, Sven Grollmuss and Michael Scheer

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product…

Abstract

Purpose

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

Methodology/approach

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

Findings

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

Research limitations/implications

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

Originality/value

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

1 – 10 of over 47000