LCC

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LCC

• Life cycle Costing

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Life Cycle Costing(LCC)

• Group 2
• SIRIWAN KEAWNGAM
• VIJITTRA CHINTAPANYASAKUN
• SAOWALUK TAWANTHARONG
• SUWANNA SANTISOOKBUMROONG
• BOONLERT CHOMPOOBORISUTH
• SATHIT NIMITPAITOON

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Definition

• LCC is an assessment of all costs associated the
  life cycle of the product that are directly
  converted by any one or more of the actors in the
  product life cycle (supplier, producer,
  user/consumer, end of life actor) with
  complementary inclusion of externalities that are
  anticipated to be internalized in the decision-
  relevant future.

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Concept Methodology
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Procedure of LCC
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LCC Data Analysis
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LCC Activity in Japan
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Example 1Tanabe Seiyaku Co., Ltd.

• Product Line Pharmaceutical product
• Data Collection One year (April 2000-March 2001)
• Scope of data collection
• Material Cost
• Energy Cost
• System Cost
• Waste Disposal Cost

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Waste Disposal Method

• Installation of the chloroform absorption
  recovery system at 66.1 million yen
• Cost saving
• Reduce Chloroform emission 490,000 yen
• Reduce waste water 13,320,000 yen
• Reduce Labor cost and energy cost
  
  46,010,000 yen
• TOTAL SAVING COST 59,820,000 yen
  
  

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Example 2Nippon Paint Co., Ltd.

• Product Line Paint product
• Data Collection Two months
• Scope of data collection
• Material Cost
• Energy Cost
• System Cost
• Waste Disposal Cost

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Material Electric Power Loss

• Power loss from power factor of equipment
• Voltage x Electric current 37,000 VA
• Effective electric power 24,000 Watt
• Power Loss 13,000 Watt
• Transfer to cost 10,700 yen
• Action Replace Equipment
• New equipment power factor ratio 86
• Saving cost (86 -65)x37,000x10,700/13,000
  6,395 yen

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LCC Activity in Thailand
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Status of LCA background data in Thailand
1 a few data , 2 need to update/enrich data
, 3 completed data ERI/CU energy research
institute/Chulalongkorn university, ,PTT PTT
Public company limited.
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SWOT Analysis
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Strength

• Useful for making decision to reduce cost .
• Reduction of environment impacts.
• Moving environment from an indirect to a direct
  cost consideration within firms
• Improvement of corporate image by information
  disclosure.

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Weakness

• Lack of Knowledge
• Low Reliability
• No Man-how
• Competitor is able to take information

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Threat

• Less awareness of customer
• No support from government
• Lack of fund
• Lack of knowledge
• Lack of supporting
• Lack of regulation/notification
• Lack of background data support

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Opportunity

• Make a good image to company
• Increase global market such as Japan , Eu market
• To be leader in green product

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Possible LCC Approach

• Establish third party or organization of LCC in
  Thailand.
• Provide knowledge to academic and publication.
• Tax reduction.
• Foundation support.

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THANK YOU FOR YOUR ATTENTION