Introduction

There is no doubt that the life cycle cost effect the Supply Support spending and to highlight
this more it is worth to look at the lifecycle support and its definition.

Definition:
It is the Sum of all recurring and one-time (non-recurring) costs over the full life span or a
specified period of a good, service, structure, or system. In includes purchase price, installation
cost, operating costs, maintenance and upgrade costs, and remaining (residual or salvage)
value at the end of ownership or its useful life1.
What is Life Cycle Costing?

Life Cycle Costing (LCC) also called Whole Life Costing is a technique to establish the
total cost of ownership. It is a structured approach that addresses all the elements of
this cost and can be used to produce a spend profile of the product or service over its
anticipated life-span. The results of an LCC analysis can be used to assist management
in the decision-making process where there is a choice of options2.

Definition life cycle costing. Business Dictionary.com http://www.businessdictionary.com/definition/lifecycle-cost.html 27 June 2011

2 Life cycle support. OQC.
http://www.ogc.gov.uk/implementing_plans_introduction_life_cycle_costing_.asp
Dated 27 June 2011