Designing a hybrid methodology for the Life Cycle Valuation of capital goods

Willem Haanstra*, A.J.J. Braaksma*, L.A.M. van Dongen*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
124 Downloads (Pure)

Abstract

Decision-makers are increasingly required to assess the value created by complex physical systems over their entire life cycle. The commonly applied Life Cycle Costing approach fails to fully capture value, as it is primarily aimed at costs, takes a reductionist approach, and does not account for continuously changing industrial environments. To address these shortcomings, the Life Cycle Valuation methodology is proposed, designed as a hybrid of LCC and Life Cycle Assessment. LCV facilitates the assessment of costs and benefits from multiple complementary perspectives and can be tailored to specific decision contexts, as demonstrated by applying LCV during Asset Management decision-making.
Original languageEnglish
Pages (from-to)382–395
Number of pages14
JournalCIRP journal of manufacturing science and technology
Volume32
DOIs
Publication statusPublished - Jan 2021

Keywords

  • Life Cycle Valuation
  • Life Cycle Assessment
  • Life Cycle Costing
  • Physical assets
  • Decision-making
  • Asset Management
  • ISO 55000
  • Life Cycle Planning
  • Capital goods

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