Life cycle cost analysis

A life cycle cost analysis calculates the cost of a system or product over its entire life span.

The analysis of a typical system could include costs for:

• planning,
• design,
• development,
• production,
• operation,
• maintenance,
• disposal or salvage.

This cost analysis depends on values calculated from other reliability analyses like failure rate, cost of spares, repair times, and component costs.

See also: Product life cycle management, Technology lifecycle, Crossing the Chasm, spend management