Guide to Life Cycle Costing
This Standard provides a general introduction to the concept of life cycle
costing. Although life cycle costs consist of many contributing elements, this
Standard particularly highlights the costs associated with dependability
elements (reliability, availability, maintainability, and maintenance support)
of the product. It explains the purpose and usefulness of life cycle costing
and outlines the general approaches involved.
The Standard identifies typical life cycle cost elements to facilitate
project and programme planning. It also provides general guidance for
conducting and documenting a life cycle cost analysis, including life cycle
cost model development.
The Standard is intended for use by both suppliers and users of products.
Adherence to this Standard will
(a) facilitate a consistent and structured approach to life cycle costing
(b) provide common definitions for the life cycle costing process, thus
improving understanding and communication of it; and
(c) ensure a uniform approach to documentation of life cycle costing analysis,
thus assisting the decision makers and facilitating comparison between
This Standard does not
(a) provide specific criteria for identifying the need for life cycle costing
(b) specify detailed life cycle costing methodologies for specific
Note: Life cycle costing analysis is applicable for comparative evaluations
even when few data are available. Life cycle costing analysis is also useful
in estimating the costs of a product at any time during its life cycle.