Categories: Management

Life Cycle Costing in Project Management

The purpose of life cycle costing is to calculate end to end cost of the product rather than the cost of the project. The other way to elaborate this concept is the cost of the entire life cycle of the product not only project to produce the product.

The common mistakes most project managers do to reduce the cost of the project by sacrificing important factors such as risk and performance. As a result, the maintenance cost of product life cycle increased due to low quality standard product.

For example, if you have planned to complete the project at low cost say USD 10,000 by reducing the quality however, the maintenance cost is USD 50,000 rather than USD 15,000 over the product’s life. The maintenance could the same as planned or even below if the project manager’s delivers the product of high quality without reducing the cost of the project to create product.

kasi

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

2 years ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago