Definition

- Plant life cycle management is the process of managing the data and information of an
industrial plant throughout all stages of its life cycle. These include, among many things,
test results, inspection cycles and compliance documents, which should ideally be linked
with each other so that operators can access the necessary information to improve plant
reliability and performance and reduce downtime.
- It is important that the asset produces the commodity, such as an oil refinery or a
nuclear power plant. Managing an asset's lifecycle to improve productivity while
minimizing risk at each stage of the lifecycle is where the benefits of these strategies
manifest.
- Generally, Life Cycle Management (LCM) is an integrated concept for managing the total life
cycle of goods and services toward a more sustainable production and consumption.

The five phases of product development: There are many different ways to describe the
phases of product development and no one industry standard. However, the phases below
represent a typical development cycle.

1. Concept and design: The ideation phase, where a product’s requirements

are defined based on factors including competitor analysis, gaps in the
market, or customer needs.
2. Develop: The detailed design of the product will be created, along with any
necessary tool designs. This phase includes validation and analysis of the
planned product, as well as prototype development and piloting in the field.
This generates vital feedback on how the product is used and what further
refinements are needed.
3. Production and launch: Feedback from the pilot is used to adjust the design
and other components to produce a market-ready version. The production of
the new product is scaled – followed by launch and distribution to the market.
4. Service and support: Following the launch of the new product, the period of
time when service and support is offered.
5. Retirement: At the end of the product’s lifecycle, its withdrawal from the
market must be managed – along with any retrials or absorption into new
concept ideas.
The following are five key reasons why companies choose to invest in PLM
solutions.

- Improvements to development, engineering efficiency, and

effectiveness: Results from the Industry Week survey found that silos are the
biggest challenge to engineering team performance. PLM enables the bi-
directional flow of real-time data to support better knowledge-sharing and
collaboration.
- Elimination of errors during the engineering release process: It’s far
simpler – and cheaper – to rectify product issues that are identified earlier on.
PLM helps to reduce cost and offers the additional environmental benefit
of reducing manufacturing waste.
- Reduced time to market: Offering a single source of truth with up-to-date
information at every phase of the product lifecycle, PLM empowers project
managers to control overlapping timelines and get products to market faster.
- Improved project delivery: A cross-enterprise, digital PLM solution supports
advanced workflow management. In this use case, PLM allows a team to
 precisely calculate product costs and more effectively manage the handover
to manufacturing new designs.
- Higher quality designs: PLM offers designers and engineers a deeper level
of insight into product requirements. Ingesting data from many different
internal and external sources, a PLM system with integrated machine
learning can turn performance data and customer feedback into new feature
suggestions.
-
The generic life cycle structure commonly exhibits the following characteristics:

- At the start, cost and staffing levels are low and reach a peak when the work is in
progress. It again starts to drop rapidly as the project begins to halt.
- The typical cost and staffing curve do not apply to all projects. Considerable expenses
secure essential resources early in their life cycle.
- Risk and uncertainty are at their peak at the beginning of the project. These factors drop
over the life cycle of the project as decisions are reached, and deliverables are accepted.
- The ability to affect the final product of the project without impacting the cost drastically
is highest at the start of the project and decreases as the project advances towards
completion. It is clear from figure 2 that the cost of making new changes and rectifying
errors increases as the project approaches completion.

Let’s take a look at how knowledge of the project life cycle benefits an organization:
 - It helps professional services teams to be more proficient and profitable.
- The project life cycle helps the organization.
- It makes the flow of communication easier.
- The knowledge emphasizes reporting and examining previous projects.

https://www.tuvsud.com/en/industries/chemical-and-process/plant-life-cycle-data-
management-system

https://www.invensislearning.com/blog/5-phases-project-management-lifecycle/

https://www.sap.com/insights/what-is-product-lifecycle-management.html

2. Management according to LCPM

1. Planning

A device’s lifecycle begins with planning and development. During this phase,
service providers work with customers to determine the device’s purpose as well as
the functions and specifications needed to achieve that purpose. In most cases, the
primary purpose of a new device is to solve a problem more efficiently and/or cost-
effectively.

Once a device’s purpose and specifications have been established, the device is
secured from appropriate vendors or designed and tested by engineers who
incorporate user feedback along the way. Device staging, integration, and kitting are
also important parts of the procurement process, ensuring only high-functioning
devices are placed directly into the hands of end users. 

2. Implementation

After procurement, devices are integrated into an organization’s existing technology

platforms and applications, connected to the necessary networks, and configured
according to the desired specifications. These activities comprise the implementation
phase.

The implementation phase also includes robust end-user training and device
monitoring. Any issues that emerge are closely assessed to facilitate rapid solution
identification and deployment.

3. Maintenance
Devices that malfunction lead to spikes in helpdesk requests and repair costs that
directly impair employee productivity, making maintenance one of the most important
phases of device lifecycle management. 

The maintenance phase focuses on ongoing device operability,mprove the device

repair, return, and replacement process.

4.Fianlisation

• Improve efficiency in work management, inspection and supervision of

maintenance, maintenance and repair of machinery and equipment.

• Secure the maintenance, repair, and repair of machinery and equipment

quickly, responding quickly to requirements as well as using efficient
machinery and equipment.

• Reduce wear, damage and loss, improve the life and use value of all kinds
of equipment, computers.

• Regulations on the responsibilities of individuals as well as the

responsibilities of departments and divisions in damage, notification, storage
and protection of protective equipment at the company.

Chi phí vòng đời sản phẩm

Khái niệm
Chi phí vòng đời sản phẩm trong tiếng Anh là Life cycle cost, viết tắt
là LCC, hoặc Lifetime cost.
Chi phí vòng đời sản phẩm là tổng của tất cả các chi phí liên quan đến hàng hóa, như
xe hơi hoặc nhà, trong suốt tuổi thọ dự kiến của sản phẩm. Tổng chi phí vòng đời sản
phẩm bao gồm số tiền phải trả để mua sản phẩm.
Các doanh nghiệp sẽ thường xuyên tính toán chi phí vòng đời sản phẩm trước khi thực
hiện các khoản chi tiêu lớn, nâng cấp và cải tạo. Mặt khác, hầu hết các cá nhân hiếm
khi ước tính chi phí này trước khi mua nhà, thuyền, ô tô hoặc các mặt hàng đắt tiền
khác. Bên cạnh giá mua gốc, chi phí vòng đời sản phẩm bao gồm:
- Chi phí duy trì sản phẩm luôn ở trạng thái tốt hoặc hoạt động.

- Chi phí bảo hiểm để bảo vệ sản phẩm.

- Chi phí cải tạo hoặc nâng cấp theo yêu cầu của sản phẩm.

Đặc điểm của chi phí vòng đời sản phẩm

Chi phí vòng đời sản phẩm bao gồm chi phí lập kế hoạch, thiết kế, mua lại và hỗ trợ
và bất kì chi phí nào khác liên quan trực tiếp đến việc sở hữu hoặc sử dụng tài sản.
Lí do chính để mua một chiếc xe của hầu hết mọi người là để vận chuyển. Họ sẽ
thường so sánh giá cả, tính năng mong muốn và các ưu đãi khác nhau giữa các đại lí
trước khi mua. Tuy nhiên, chi phí của chiếc xe không dừng lại ở chi phí mua ban đầu.

Một người cần phải xem xét các chi phí liên quan như tiền đổ xăng hàng tuần, thay
dầu định kì, bảo hiểm, cấp giấy phép và phí kiểm tra xe. Tuy nhiên, vẫn có các chi phí
khác như hỗ trợ trên đường, rửa xe, thuê xe hoặc nhà để xe. Chủ xe có thể dễ dàng chi
tiêu nhiều hơn đáng kể so với giá trị mua xe. Một người tiêu dùng khôn ngoan sẽ kiểm
tra cân nhắc các chi phí phát sinh hàng năm của mặt hàng trước khi cam kết mua nó.

Như vậy về bản chất, chi phí vòng đời sản phẩm ước tính tất cả các chi phí liên quan
đến mua sắm, vận hành, bảo trì và cuối cùng là xử lí một sản phẩm trong suốt vòng
đời của nó.
Tính toán chi phí vòng đời sản phẩm (Life cycle costing)
Việc tính toán chi phí vòng đời sản phẩm khác với hệ thống kế toán chi phí truyền
thống, ghi lại các mức chi phí theo khung thời gian cố định (ví dụ hàng tháng, hàng
quí và hàng năm), trong khi tính toán chi phí vòng đời sản phẩm liên quan đến việc
tính chi phí của một sản phẩm hoặc dự án cho đến khi sản phẩm hoặc dự án đó kết
thúc.
Do đó, việc tính toán chi phí vòng đời sản phẩm của một sản phẩm là một cách tiếp
cận được sử dụng để cung cấp một bức tranh dài hạn về lợi nhuận của sản phẩm đó,
đồng thời đưa ra phản hồi về hiệu quả của kế hoạch sử dụng sản phẩm để làm rõ tác
động kinh tế đối với những lựa chọn thay thế khác trong thiết kế, giai đoạn kĩ thuật,...
Nó cũng được coi là một cách để tăng cường kiểm soát chi phí sản xuất. Điều quan
trọng là phải theo dõi và đo lường chi phí trong từng giai đoạn của vòng đời sản phẩm.

Lợi ích của việc tính toán chi phí vòng đời sản phẩm
Sau đây là những lợi ích chính của việc tính toán chi phí vòng đời sản phẩm sản
phẩm:
- Tính toán chi phí vòng đời sản phẩm sản phẩm giúp doanh nghiệp hành động sớm
hơn để tạo doanh thu hoặc giảm chi phí so với các sản phẩm thay thế khác. 
- Tính toán chi phí vòng đời sản phẩm giúp đưa ra quyết định sáng suốt hơn nhờ có sự
đánh giá chính xác và thực tế hơn về doanh thu và chi phí trong một giai đoạn vòng
đời cụ thể.
- Tính toán chi phí vòng đời sản phẩm giúp tăng trưởng lợi nhuận dài hạn hơn ngắn
hạn.
- Tính toán chi phí vòng đời sản phẩm cung cấp một cái nhìn tổng thể về tổng chi phí
gia tăng trên toàn bộ khoảng thời gian của sản phẩm.
Product life cycle cost

Concept

Product life cycle cost in English is Life cycle cost, abbreviated as LCC, or Lifetime cost.

Product lifecycle costs are the sum of all costs associated with a commodity, such as a
car or house, over the expected life of the product. Total product lifecycle costs include
the amount paid to purchase the product.

Businesses will often calculate product lifecycle costs before making major expenditures,
upgrades, and renovations. On the other hand, most individuals rarely estimate this cost
before buying a house, boat, car or other expensive item. In addition to the original
purchase price, product lifecycle costs include:

- The cost of keeping the product in good condition or working.

- Cost of insurance to protect the product.

- Cost of renovation or upgrade required by the product.

Characteristics of product life cycle costs

Product lifecycle costs include the costs of planning, design, acquisition, and support,
and any other costs directly related to owning or using the asset.

Most people's main reason to buy a car is for transportation. They will often compare
prices, desired features, and various offers between resellers before making a purchase.
However, the cost of the vehicle does not stop at the initial purchase cost.

One needs to consider the costs involved such as weekly gas refills, regular oil changes,
insurance, licensing and vehicle inspection fees. However, there are still other costs such
as roadside assistance, car wash, car rental or garage. Car owners can easily spend
significantly more than the car's purchase value. A wise consumer will weigh the annual
costs of an item before committing to buying it.

So in essence, product lifecycle costs estimate all the costs associated with procuring,
operating, maintaining, and ultimately disposing of a product over its life cycle.

Benefits of product life cycle costing

The following are the key benefits of calculating product lifecycle costs:

- Calculating product life cycle costs helps businesses act sooner to generate revenue or
reduce costs than other substitute products.

- Calculating product lifecycle costs for more informed decisions by providing a more
accurate and realistic assessment of revenue and costs in a particular lifecycle stage.

- Calculating product life cycle costs for longer-term profit growth than short-term.

- Product lifecycle costing calculations provide an overview of the total incremental costs
over the entire product lifecycle.

Product life cycle costing

Product life cycle costing is different from a traditional cost accounting system, which
records cost levels on a fixed timeframe (e.g. monthly, quarterly and annually), while
Product life cycle costs involve calculating the cost of a product or project until that
product or project ends.

Therefore, calculating the product life cycle cost of a product is an approach used to
provide a long-term picture of the profitability of that product, while providing feedback on
the effectiveness of the product. product use plan to clarify the economic impact of other
alternatives in the design, engineering phase, etc.

It is also seen as a way to strengthen control over production costs. It is important to

track and measure costs in each stage of the product lifecycle.