Life Cycle Costing and Sustainability: A Holistic Approach to Decision-Making
In an era where financial prudence and environmental responsibility are paramount, Life Cycle Costing (LCC) and sustainability have emerged as key concepts for organizations and industries. By focusing on the entire lifecycle of a product, service, or asset, LCC enables informed decision-making, while sustainability ensures that these decisions are environmentally and socially responsible. Together, they provide a powerful framework for creating long-term value.
What is Life Cycle Costing?
Life Cycle Costing is a financial analysis method that assesses the total cost of ownership (TCO) over the lifecycle of an asset or project. This includes the costs of acquisition, operation, maintenance, and disposal. Unlike traditional cost analysis, which focuses on upfront costs, LCC considers all phases, ensuring a more comprehensive understanding of the financial impact.