Reasons to do Life Cycle Costing
Combining LCA and Life Cycle Costing gives you additional decision support metrics.
Combining environmental and economic data can give important information, such as
- Insights in the cost structure of a product and it's alternatives: where is the (shift in) cost burden? You can use this information to convince your clients that a higher product price can still give lower Total Cost of Ownership (TCO), while making significant savings in the environmental burden of a product.
- Improvements in the environmental performance per Dollar or Euro investment to show all kinds of eco-efficiency indicators. This Return on Investment (ROI) or Cost Benefit Analysis metric will help you build the case for sustainable investments.
Are you implementing a Life Cycle Management (LCM) system in your company? This UNEP report (PDF) has an interesting chapter on the role of Life Cycle Costing in LCM.