Abstract

Sets out a process for life cycle costing of a product as a component of an economic evaluation. The Standard is intended for use by both customers (users) and suppliers of products. Following the proposed methodology will give a dollar value representing the life cycle cost of the product. Appendices propose hypothetical worked examples which reflect the use of the outlined analysis, a sample spreadsheet indicating typical costs that may occur over the life cycle phases, typical cost-generating activities and an elaboration of real cost, nominal cost and discounted cost.

RECONFIRMATION NOTICE
Technical Committee QR-005 has reviewed the content of this publication and in accordance with Standards Australia procedures for reconfirmation, it has been determined that the publication is still valid and does not require change.
Certain documents referenced in the publication may have been amended since the original date of publication. Users are advised to ensure that they are using the latest versions of such documents as appropriate, unless advised otherwise in this Reconfirmation Notice.
Approved for reconfirmation in accordance with Standards Australia procedures for reconfirmation on26 August 2013.
Approved for reconfirmation in New Zealand on behalf of the Standards Council of New Zealand on 24 October 2013.
The following are represented on Technical Committee QR-005:

Asset Management Council
Australian Organisation for Quality
Department of Defence (Australia)
Engineers Australia
Independent Transport Safety & Reliability Regulator
Institution of Professional Engineers New Zealand
New Zealand Society for Risk Management
Risk Management Institution of Australasia
The University of New South Wales
University of Wollongong

Scope

This Standard details the process of life cycle costing and is intended for use by both customers (users) and suppliers of products. Following the process will give a dollar value representing the life cycle cost (LCC) of a product to satisfy an identified need, together with supporting and qualifying documentation.

This Standard specifically excludes consideration of revenues. LCC includes acquisition ownership and disposal costs. Where products being compared give rise to different potential revenues these must be considered in the broader evaluation process. LCC is one input to the evaluation process.

Definitions and discussion of the various components of life cycle costing are included. The Standard highlights many of the contributing elements for forming a life cycle costing model. It also provides definitions and descriptions to assist the development of a model along with the types of outputs that may suit a desired interpretation.

Worked examples of life cycle costing exercises are included with sample evaluation and presentation pro formas.

General Product Information

Published
Document Type	Standard
Status	Current
Publisher	Standards Australia
ProductNote	Reconfirmed 20/01/2014. This standard has been reconfirmed in Australia in 2014 and remains current in New Zealand. Reconfirmation Notice 20/01/2014
Pages
ISBN
Committee	OB-011
Supersedes	DR 96522