METHODS OF PRODUCT LIFE CYCLE COST ESTIMATION
An analysis of product life cycle costs requires an appropriate level of knowledge and
cost data related to the product under development. Efforts to predict costs at early stages
of product development suffer from a considerable lack of information about the economic,
manufacturing and operational characteristics of the product. The degree of precision
in cost estimation increases as the new product project progresses to further stages. For
example, at the phase of technical preparation for manufacturing it is possible to estimate
the product manufacturing costs with a relatively good degree of precision. It is more difficult
to obtain data about redevelopment and maintenance, operating costs such as material
costs, sub-contracting, energy, labour, the anticipated operation lifespan, etc.
The limited data inputs that occur to the largest degree at early stages of product
development require that a choice should be made concerning specific methods of cost
estimation. These methods are not targeted at the costs of all stages of the product life