Abstract
Background
In developing products various requirements have to be integrated including functionality, quality, affordability as well as environmental aspects. Often conflicting requirements have to be fulfilled. Therefore, multi-dimensional decision support approaches are necessary.
Methods
Here, one approach is to relate the conflicting requirements to each other. Life Cycle Costing (LCC) has the potential to support the trade-off between some environmental targets and overall affordability targets by including all monetary flows along the product life cycle (going beyond the well-known costs of ownership by integrating also long-term use and end-of-life costs). Those solutions can be identified that (a) have the highest efficiencies (where do we get most environmental improvements per Ϊ and (b) have the highest affordability for the customer along the life cycle. Furthermore, on-costs in the design phase can be justified in terms of future savings either for the customer or for the recycling of the products. These represent real business cases for environmental actions. Three types of environmental business cases can be differentiated.
Results and Discussion
This paper presents various examples where LCC is integrated into product design. However, there are a number of open issues in the implementation of LCC within real product development including data availability and uncertainty (future costs/ savings), level of discounting, accounting and compensation. Various internal case studies done in the last years showed that already few changes in the costs structure can significantly affect the identi-fied future costs.
Recommendation and Outlook
Uncertainties in LCC are higher than in LCA and highest when applied in the stage of product develop-ment, i.e. used to support DfE action. As a consequence, the result-ing figures can only be seen as directional. Therefore, the use of LCC in Design for Environment cannot be recommended without major restrictions in terms of guidance, experience/training. The link-age between LCC and DfE can either be established via (1) experts supporting design teams or (2) as part of a DfE tool. The DfE tool has to include detailed guidance for interpretation, and its application should be based on a solid training for DfE engineers.
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Schmidt, WP. Life Cycle costing as part of design for environment environmental business cases. Int J LCA 8, 167–174 (2003). https://doi.org/10.1007/BF02978464
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DOI: https://doi.org/10.1007/BF02978464