A Design Criterion for Evaluating Costs Across the Entire Product Life
Life Cycle Cost is a method used to evaluate all costs incurred throughout the life of a product or piece of equipment, from planning, design,
purchasing, manufacturing, and installation to operation, maintenance, repair, upgrading, and final disposal.
It is commonly abbreviated as LCC and may also be described as whole-life cost or total life-cycle cost.
In mechanical design, the economic value of a product cannot be judged by its initial purchase price alone. Equipment with a low initial price may
generate a much higher total cost if it consumes excessive energy, fails frequently, or requires substantial time for cleaning and maintenance.
Conversely, equipment with a higher initial purchase price may have a lower total cost when it provides the following advantages:
Low energy consumption
High productivity
Low failure frequency
Easy maintenance
Long consumable-part life
Short cleaning time
Low downtime
Stable spare-parts supply
Long equipment life
Easy disposal and recycling
Life Cycle Cost therefore begins with the following questions:
How much will it cost to purchase and install the product?
How much energy and consumable cost will occur during operation?
How often will maintenance and repair be required?
How much production loss will result from failures and downtime?
How much operator time and cleaning time will be required?
How many times will major components need to be replaced during the product’s life?
Is there a risk of additional cost due to regulatory changes or component discontinuation?
Will disposal or recycling create additional cost?
Is the total cost lower than that of alternative solutions?
Is the balance between initial cost and long-term cost appropriate?
The major components of Life Cycle Cost can be organized as follows:
Acquisition Cost
Installation and Commissioning Cost
Operating Cost
Energy and Utility Cost
Maintenance Cost
Downtime and Production Loss
Replacement and Upgrade Cost
Quality and Failure Cost
End-of-Life Cost
Residual Value
Risk and Uncertainty
Basic Concept of Life Cycle Cost
The core purpose of Life Cycle Cost is to evaluate the total economic burden of owning and using a product throughout its entire service life,
rather than focusing only on the purchase price.
The basic relationship can be expressed as follows:
Life Cycle Cost = Initial acquisition cost + Operating cost + Maintenance cost + Failure and downtime cost + Replacement cost + End-of-life cost
− Residual value
In practice, however, costs that occur in the future should be converted into present value.
A general present-value-based LCC equation can be expressed as follows:
LCC = C₀ + Σ [Cₜ ÷ (1 + r)ᵗ] − RV ÷ (1 + r)ⁿ
The terms are defined as follows:
C₀: Initial investment cost
Cₜ: Cost incurred in year t
r: Discount rate
t: Time at which the cost occurs
RV: Residual value
n: Evaluation period
This calculation is used to compare present and future costs on a common economic basis.
Life Cycle Cost is not merely an accounting calculation. It is a design-decision criterion that influences structure, material, component selection,
maintenance strategy, and productivity from the early stages of development.
Difference Between Life Cycle Cost and Purchase Price
The purchase price is the amount paid at the time a product is acquired. Life Cycle Cost includes all costs incurred while using, maintaining, and
disposing of the product.
For example, two machines may have the following characteristics.
Machine A
Low initial price
High energy consumption
Short consumable replacement intervals
Long cleaning time
Frequent failures
Requires specialized personnel for maintenance
Machine B
High initial price
Low energy consumption
Long component life
Easy cleaning and disassembly
Low failure frequency
Short downtime
Machine A may appear more economical when only the purchase price is considered. However, over five or ten years, Machine B may have a
lower total cost.
Equipment comparisons should therefore distinguish among the following:
Initial purchase price
Annual operating cost
Annual maintenance cost
Production-loss cost
Expected service life
Residual value
Total Life Cycle Cost
Life Cycle Cost and Total Cost of Ownership
Life Cycle Cost and Total Cost of Ownership are often used in similar ways, but their emphasis is slightly different.
Life Cycle Cost
Life Cycle Cost evaluates costs across the entire product life, from planning and development to final disposal.
Major areas of concern include:
Design
Manufacturing
Purchasing
Installation
Operation
Maintenance
Upgrading
Disposal
Recycling
Total Cost of Ownership
Total Cost of Ownership focuses mainly on the costs borne by the purchaser while owning and using the product.
Major areas of concern include:
Purchase price
Installation cost
Operating cost
Maintenance cost
Training cost
Downtime loss
Disposal cost
Life Cycle Cost has a broader engineering perspective across the full product life, while Total Cost of Ownership emphasizes the owner’s
financial burden during use.
Both concepts may be used together when evaluating industrial equipment.
Life Cycle Cost Evaluation Period
An expected service period must be established before conducting an LCC analysis.
The evaluation period may depend on:
Physical product life
Technological life
Economic life
Contract period
Depreciation period
Legally permitted operating period
Spare-parts supply period
Customer replacement cycle
Physical Life
The period during which the product can continue to function mechanically.
Technological Life
The period before technological progress or standard changes reduce the practical value of the product.
Economic Life
The period until increasing repair and maintenance costs make replacement more economical than continued use.
Regulatory Life
The period until safety, environmental, hygienic, or energy regulations make continued use difficult.
A product may remain physically operable while its economic life becomes shorter because of poor productivity or increasing maintenance cost.
Acquisition Cost
Acquisition cost includes the expenses incurred during the initial stage of obtaining a product or system.
Major items include:
Product purchase price
Design cost
Engineering cost
Mold cost
Jig and fixture cost
Transportation cost
Packaging cost
Customs duties
Insurance
Contract costs
Financing cost
Initial spare-parts purchase
Design and Development Cost
For custom-built or special-purpose equipment, design and development costs may represent a significant portion of the initial investment.
Major items include:
Requirements analysis
Mechanical design
Electrical design
Control-system design
Software development
Prototype production
Testing
Certification
Technical documentation
Reducing initial design cost by using an insufficiently validated structure may increase failure, modification, and repair costs later.
Purchased-Component Cost
Purchased components may include:
Motors
Gearboxes
Servo drives
Inverters
Bearings
Sensors
Cylinders
Valves
PLCs
HMIs
Safety devices
When selecting purchased components, the unit price should be evaluated together with expected life, supply period, replacement cost, and
compatibility.
Installation and Commissioning Cost
Additional costs occur between purchasing the equipment and beginning normal operation.
Major installation costs include:
Transportation and unloading
Equipment positioning
Foundation work
Electrical connection
Pneumatic connection
Water supply and drainage
Exhaust systems
Safety fencing
Network connection
Software configuration
Trial operation
Operator training
Initial validation
On-Site Installability
Installation cost increases when equipment is large, heavy, or difficult to disassemble.
The following should be reviewed during design:
Can the equipment pass through doors and access routes?
Are a crane or forklift required?
Can the equipment be divided into modules?
Is field reassembly straightforward?
Is leveling easy?
Are electrical and piping connections standardized?
Commissioning and Validation
Complex equipment may require substantial time before stable operation is achieved.
Commissioning cost may include:
Initial adjustment
Sensor calibration
Servo tuning
Program modification
Product-condition setup
Quality validation
Safety-function verification
Operator training
Design standardization and automated setup functions can reduce commissioning cost.
Operating Cost
Operating cost is incurred continuously while the product or equipment is in use.
Major items include:
Operator labor
Energy
Raw-material loss
Lubricants
Cleaning agents
Coolant
Compressed air
Consumables
Process water
Packaging materials
Quality-inspection cost
Labor Cost
Operator time remains an important cost even in automated equipment.
Factors affecting labor cost include:
Machine operating time
Product loading and unloading
Setup changes
Cleaning
Inspection
Defect handling
Rework
Recordkeeping
Shift handover
Even highly automated equipment may deliver limited labor savings if setup and cleaning require substantial manual work.
Production Capacity
Higher production capacity allows more output within the same period.
Major evaluation factors include:
Production rate per hour
Cycle time
Preparation time
Product-changeover time
Cleaning time
Non-operating time
Yield
Rework rate
Higher productivity can reduce fixed and labor cost per unit.
Energy and Utility Cost
Energy cost can become a major component of LCC when equipment operates for long periods.
Electricity Cost
Electricity cost is influenced by:
Motor rated power
Actual load factor
Operating time
Standby power
Heaters
Cooling systems
Vacuum pumps
Compressors
Drive efficiency
Actual electricity consumption should not be estimated from rated power alone. Load pattern, operating time, and standby condition must also be
considered.
Compressed-Air Cost
Compressed air is one of the more expensive utilities in many manufacturing facilities.
Common causes of excessive cost include:
Leakage
Excessive supply pressure
Oversized cylinders
Continuous air blowing
Inefficient vacuum generation
Unnecessary standby consumption
Pneumatic systems should be designed with optimized cylinder sizes and pressure levels while minimizing leakage.
Water and Cleaning Utilities
The following costs are important in food-processing equipment:
Wash water
Hot water
Steam
Detergents
Disinfectants
Wastewater treatment
Drying energy
Good hygienic design can reduce both cleaning time and water consumption.
Maintenance Cost
Maintenance cost is incurred to preserve product function and safety.
Major maintenance activities include:
Routine inspection
Lubrication
Adjustment
Cleaning
Consumable replacement
Component replacement
Preventive maintenance
Breakdown repair
Software updates
Safety inspection
Preventive-Maintenance Cost
Preventive maintenance is performed according to a planned schedule before failure occurs.
Major items include:
Scheduled inspection time
Filter replacement
Belt replacement
Lubricant replacement
Seal replacement
Sensor inspection
Fastener inspection
Safety-device inspection
Although preventive maintenance creates direct cost, it can reduce sudden failures and unplanned downtime.
Corrective-Maintenance Cost
Corrective maintenance is performed after a failure occurs.
Major costs include:
Technician labor
Emergency travel
Replacement parts
Transportation
Production downtime
Recommissioning
Disposal of defective products
Maintenance Accessibility
A design with poor maintenance accessibility requires more time and cost even for simple component replacement.
Design features that reduce maintenance cost include:
Fast cover opening
Easy access to replacement components
Sufficient tool space
Modular construction
Standardized fasteners
Repeatable locating features
Diagnostic functions
Status indicators
Simplified disassembly sequence
Downtime and Production-Loss Cost
The cost of equipment downtime can be greater than the direct maintenance cost.
Downtime cost may include:
Value of lost production
Idle labor cost
Interruption of upstream and downstream processes
Delivery delay
Emergency outsourcing
Restart preparation time
Disposal of work-in-process
Customer complaints
Contractual penalties
Downtime loss can be estimated as follows:
Downtime-loss cost = Production value per hour × Downtime + Additional response cost
Planned Downtime
Planned downtime is scheduled in advance for maintenance, cleaning, or changeover.
Scheduled inspection
Cleaning
Consumable replacement
Mold replacement
Product changeover
Calibration
Unplanned Downtime
Unplanned downtime occurs without warning because of failures or errors.
Motor failure
Sensor error
Component breakage
Software fault
Safety-system activation
Power failure
Product jamming
Reducing unplanned downtime is one of the most important ways to reduce LCC.
Reliability and Failure Cost
Reliability is the probability that a product performs its required function without failure for a specified period.
Common reliability indicators include:
MTBF
MTTR
Failure rate
Availability
Repair time
Preventive-maintenance interval
MTBF
MTBF means Mean Time Between Failures.
A longer MTBF indicates a lower frequency of failure.
MTTR
MTTR means Mean Time to Repair.
A shorter MTTR indicates faster recovery after failure.
Availability
Availability can be expressed as follows:
Availability = MTBF ÷ (MTBF + MTTR)
High availability requires both low failure frequency and short repair time.
Replacement and Upgrade Cost
Major components may need to be replaced or upgraded during the product’s service life.
Typical replacement items include:
Motors
Gearboxes
Bearings
Seals
Belts
Chains
Blades
Sensors
Batteries
Controllers
Displays
Cables
Component Life
The expected replacement interval of each component should be included in the LCC calculation.
Replacement cost can be expressed as:
Replacement cost = Component price + Labor cost + Downtime loss + Resetting cost
Technology Upgrades
Long-life equipment may require upgrades such as:
Controller replacement
Software updates
Safety-standard improvements
Communication-standard changes
Energy-saving modifications
Additional sensors
Production-speed improvements
Traceability functions
A modular design allows specific functions to be upgraded without replacing the entire machine.
Quality Cost
Costs associated with product quality should also be included in Life Cycle Cost.
Quality cost can be divided into the following categories.
Prevention Cost
Cost incurred to prevent defects.
Design reviews
Operator training
Preventive maintenance
Process control
Supplier evaluation
Standardization
Appraisal Cost
Cost incurred to verify that the product meets quality requirements.
Inspection
Testing
Measurement
Calibration
Quality audits
Internal Failure Cost
Cost caused by defects discovered before shipment.
Scrap
Rework
Reinspection
Production delay
Raw-material loss
External Failure Cost
Cost caused by problems discovered after delivery.
Warranty repair
Field service
Replacement
Recall
Customer complaints
Reputation loss
Contract loss
Excessive reduction of early design and quality-control cost may produce much larger external failure costs later.
Cleaning and Sanitation Cost
Cleaning cost is a significant part of LCC in food-processing equipment.
Major cleaning costs include:
Operator cleaning time
Disassembly time
Reassembly time
Wash water
Hot water
Detergent
Disinfectant
Drying time
Post-cleaning inspection
Production downtime
Cleaning Time
Cleaning time is directly related to equipment structure.
Factors that increase cleaning time include:
Large number of removable parts
Requirement for tools
Narrow gaps and inaccessible areas
Poor drainage
Heavy components
Need for realignment after reassembly
Hygienic Design and Cost
Hygienic design may increase initial manufacturing cost but reduce the following:
Cleaning time
Water consumption
Detergent consumption
Contamination risk
Product disposal
Recleaning
Microbiological testing
Production downtime
Labor Cost
Labor cost is incurred continuously during operation, cleaning, maintenance, and administration.
Major labor-cost items include:
Operator time
Setup time
Product-changeover time
Cleaning time
Inspection time
Repair time
Training time
Quality-recording time
Safety-inspection time
The designer should evaluate actual operator involvement rather than relying only on a nominal automation level.
An automated system may still have high labor cost when:
Frequent manual adjustment is required.
Product jams occur regularly.
Cleaning is complicated.
Defect inspection is manual.
Component replacement takes substantial time.
End-of-Life Cost
At the end of product life, costs may be incurred for dismantling, transportation, disposal, and recycling.
Major items include:
Equipment disassembly
Removal from the site
Transportation
Waste treatment
Hazardous-material treatment
Decontamination
Data deletion
Recycling separation
Site restoration
Disassemblability
Structures that are difficult to dismantle increase disposal cost.
Disassemblability can be improved by:
Reducing the number of material types
Using removable fasteners
Applying material identification
Clearly marking hazardous-material locations
Separating the product into modules
Minimizing permanent adhesives and multilayer coatings
Waste Regulations
Separate treatment costs may be required when the product contains:
Oil
Refrigerant
Electronic components
Batteries
Chemicals
Residual Value
Residual value is the economic value remaining at the end of the product’s service life.
Residual value may include:
Used-equipment resale value
Reusable-component value
Scrap-metal value
Reusable-module value
Refurbishment value
Relocation value
Residual value can be deducted from total Life Cycle Cost.
Net Life Cycle Cost = Total cost − Residual value
Reusable modules and standardized components can increase residual value.
Discount Rate and Present Value
A future cost does not have the same economic value as the same nominal amount today.
For long-term analysis, future costs should therefore be converted into present value using a discount rate.
Present Value
The present value of a cost occurring t years in the future is calculated as:
Present Value = Future Cost ÷ (1 + r)ᵗ
Here, r is the discount rate.
Setting the Discount Rate
The discount rate may reflect:
Cost of capital
Loan interest rate
Expected investment return
Inflation
Business risk
Internal company criteria
A higher discount rate reduces the present value of costs occurring far in the future.
Real and Nominal Cost
When costs include inflation, a nominal discount rate should be used.
When costs are expressed in constant present-day prices without inflation, a real discount rate should be used.
Mixing these two methods can distort the result.
Inflation and Price Escalation
Not all costs increase at the same rate.
The following costs may rise faster than general inflation:
Electricity
Labor
Special components
Technical service
Environmental treatment
Imported components
Software licenses
Separate escalation rates may be applied for:
Energy
Labor
Component prices
Disposal cost
For long-life equipment, multiple price-escalation scenarios should be evaluated.
Risk and Uncertainty
Life Cycle Cost includes forecasts of future events and therefore contains uncertainty.
Major uncertainties include:
Actual operating hours
Energy prices
Failure frequency
Component life
Maintenance intervals
Labor cost
Production volume
Defect rate
Regulatory changes
Component discontinuation
Residual value
Sensitivity Analysis
Sensitivity analysis evaluates how much the LCC changes when a particular variable changes.
Typical variables include:
Energy price ±20%
Maintenance cost ±20%
Equipment-life variation
Failure-rate variation
Production-volume variation
Discount-rate variation
Residual-value variation
The factors having the greatest influence on LCC can then be reflected in design and investment decisions.
Scenario Analysis
Possible scenarios include:
Optimistic scenario
Base scenario
Pessimistic scenario
Calculating cost under each scenario provides a more realistic understanding of future risk.
Availability and Production Value
Equipment economics are determined not only by cost, but also by available operating time and production value.
Availability
Major causes of reduced availability include:
Failures
Long cleaning time
Frequent product changeover
Delayed component supply
Repeated adjustment
Operator shortage
Quality defects
Safety stops
Production Value
Production value is the economic value generated by the equipment per unit of time.
Production value per hour = Production volume per hour × Contribution margin per unit
The loss caused by one hour of downtime may exceed the purchase cost of a component or even the machine itself.
For highly productive equipment, reducing downtime may therefore be more important than reducing the initial purchase cost.
Design Decisions and Life Cycle Cost
Design decisions determine a large portion of the eventual LCC.
Major design decisions include:
Material selection
Number of components
Level of modularization
Use of standard parts
Maintenance accessibility
Energy efficiency
Lubrication method
Seal design
Cleaning structure
Safety functions
Diagnostic functions
Controller architecture
Material Selection
A more expensive corrosion-resistant material may increase initial cost but reduce:
Corrosion repair
Surface-treatment repair
Contamination
Component replacement
Cleaning effort
Downtime
Component Standardization
Standard components provide:
Lower purchase price
Shorter lead time
Alternative suppliers
Easier replacement
Lower inventory cost
Simplified maintenance
Modularization
A modular design can reduce:
Repair time
Replacement time
Inventory
Modification cost
Technology-upgrade cost
Field-service cost
Diagnostic Functions
Status indication and fault-diagnostic functions increase initial cost but can reduce troubleshooting time and downtime.
Life Cycle Cost in Food-Processing Machinery
In food-processing machinery, cleaning, hygiene, corrosion, and product-loss costs are often more important than in general industrial
equipment.
Cleaning Cost
Major items include:
Cleaning labor
Disassembly and reassembly time
Wash water
Hot water
Detergent
Disinfectant
Drying
Production interruption
Product Loss
The following losses may occur:
Cutting loss
Residual product in the machine
Product jams
Incorrect cuts
Disposal due to contamination
Product discarded during cleaning
Metal contamination
Even a one-percent improvement in yield can produce a major economic benefit over time.
Hygienic-Failure Cost
A hygiene failure may result in:
Production shutdown
Recleaning
Product disposal
Microbiological testing
Recall
Customer compensation
Regulatory response
Loss of corporate reputation
Corrosion and Cleaning Chemicals
If the material and cleaning chemical are incompatible, the following may occur:
Corrosion
Seal degradation
Plastic cracking
Surface delamination
Foreign-material generation
Frequent replacement
Material selection and hygienic design should therefore be evaluated using total LCC rather than initial cost alone.
Life Cycle Cost Evaluation Procedure
Define the Purpose
First, clearly define the purpose of the LCC analysis.
Comparison of two machines
Purchasing decision
Comparison of material alternatives
Automation-investment review
Energy-saving evaluation
Maintenance-strategy selection
Replacement-timing decision
Define the Scope
Specify which costs will be included and excluded.
Design cost
Purchase cost
Installation cost
Operating cost
Energy cost
Maintenance cost
Downtime loss
Training cost
Disposal cost
Residual value
Determine the Evaluation Period
Select an appropriate period, such as:
Three years
Five years
Ten years
Expected product life
Contract period
Depreciation period
Develop the Cost Structure
Classify costs as:
Initial costs
Annual recurring costs
Periodic replacement costs
Unscheduled failure costs
Final disposal costs
Residual value
Collect Data
Relevant data may be obtained from:
Supplier quotations
Electricity-consumption records
Maintenance records
Failure history
Measured labor time
Production records
Component prices
Disposal costs
Operating data from similar equipment
Calculate Present Value
Convert future costs to present value using the selected discount rate.
Compare Alternatives
Compare alternatives under equivalent conditions:
Same evaluation period
Same production volume
Same energy price
Same discount rate
Same quality level
Perform Sensitivity Analysis
Check whether the result changes significantly when key variables change.
Make Design Decisions
Modify the design to reduce major cost drivers.
Improve energy efficiency
Improve maintenance accessibility
Increase component life
Reduce cleaning time
Add fault diagnostics
Use standard components
Apply modularization
Life Cycle Cost Comparison Items
The following structure may be used when comparing two or more machines.
Initial Cost
Purchase price
Transportation cost
Installation cost
Training cost
Commissioning cost
Annual Operating Cost
Electricity
Compressed air
Water
Operator labor
Consumables
Cleaning
Annual Maintenance Cost
Preventive maintenance
Component replacement
Technical support
Breakdown repair
Software
Production Loss
Downtime
Yield loss
Defects
Rework
Product-changeover time
End-of-Life Cost
Removal
Transportation
Disposal
Recycling
Residual value
Major Failure Modes
Insufficient consideration of Life Cycle Cost may lead to the following problems.
Purchase-Price-Driven Decision
A low-cost machine is selected, but operating and maintenance costs become excessive.
Underestimation of Energy Cost
Electricity and compressed-air costs of long-running equipment are not fully considered.
Omission of Maintenance Cost
Only component price is considered, while labor time and production downtime are excluded.
Omission of Downtime Loss
Repair cost is calculated, but production loss during shutdown is ignored.
Component Discontinuation
Controllers or purchased components are discontinued, requiring expensive redesign or modification.
Overestimation of Service Life
The actual operating environment and cleaning conditions are ignored, causing earlier-than-expected deterioration.
Overestimation of Residual Value
Used-equipment resale value or recycling value is estimated unrealistically high.
Discount-Rate Error
Nominal costs and real discount rates are mixed, distorting the result.
Failure to Reflect Production-Volume Changes
Actual production is lower or higher than expected, changing the cost per unit.
Omission of Hygienic Cost
Cleaning time, product disposal, recleaning, and contamination risk are not included.
Life Cycle Cost Review Checklist
Scope
Is the purpose of the analysis clear?
Is the evaluation period defined?
Are included and excluded costs clearly identified?
Are all alternatives evaluated under the same conditions?
Acquisition
Is the purchase price included?
Are design and development costs included?
Are transportation, installation, and commissioning included?
Are initial spare parts and training included?
Operation
Are actual operating hours reflected?
Is operator labor included?
Are production capacity and cycle time reflected?
Are setup and product-changeover times included?
Energy and Utilities
Is electricity calculated using actual load factor?
Is compressed-air consumption included?
Are water, hot water, steam, and cooling costs included?
Is energy-price escalation considered?
Maintenance
Is preventive-maintenance cost included?
Is corrective-maintenance cost included?
Are replacement intervals defined?
Are technician labor and travel costs included?
Is maintenance accessibility considered?
Downtime
Is planned downtime included?
Is unplanned downtime included?
Is production loss per hour calculated?
Are restart and product-disposal costs included?
Reliability
Is MTBF based on a reasonable assumption?
Is MTTR included?
Is availability calculated?
Have major failure modes been reviewed?
Quality
Are defect and rework costs included?
Are internal and external failure costs distinguished?
Are inspection and calibration costs included?
Is product yield reflected?
Cleaning and Hygiene
Has cleaning time been measured?
Are water and detergent costs included?
Are disassembly and reassembly times included?
Are hygienic-failure and product-disposal risks considered?
End of Life
Are removal and transportation costs included?
Are disposal and hazardous-material treatment costs included?
Is residual value estimated realistically?
Is recyclability considered?
Financial Assumptions
Is the discount rate defined?
Is the inflation basis consistent?
Are price-escalation rates included?
Has present-value calculation been applied?
Risk
Has sensitivity analysis been performed?
Have optimistic, base, and pessimistic scenarios been compared?
Are component discontinuation and supply-chain risks included?
Have changes in service life and production volume been reviewed?
Conclusion
Life Cycle Cost is not merely a method for comparing product purchase prices. It is an economic evaluation method that considers design,
manufacturing, installation, operation, energy, maintenance, failure, downtime, quality, cleaning, replacement, disposal, and residual value
throughout the full service life of a product.
A product with a low Life Cycle Cost should satisfy the following conditions:
Its initial investment is reasonable for its intended purpose.
Energy and utility consumption are low.
Required operator time is limited.
Failure frequency is low and recovery is fast.
Consumables and major components have long service lives.
Maintenance and component replacement are easy.
Production downtime and quality loss are low.
Cleaning and product changeover are fast.
Spare-parts supply and technical support are stable.
The product has a sufficiently long service life.
Disposal and recycling are straightforward.
It provides stable production value throughout its operating life.
In mechanical design, cost is not simply a result calculated after the product has been completed. Life Cycle Cost begins to take shape when
decisions are made about geometry, materials, components, energy use, maintenance, cleanability, and modularization.
Reducing initial cost too aggressively may increase operating cost, maintenance cost, downtime loss, and quality cost. Conversely, specifications
that exceed functional requirements may become unnecessary investments that cannot be recovered.
A good design is therefore not the design that is cheapest to manufacture, but the design that maintains the required function and quality while
managing the total cost of use over its entire life in the most rational way.