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LCC

LCC. Life cycle Costing. Life Cycle Costing(LCC). Group 2 SIRIWAN KEAWNGAM VIJITTRA CHINTAPANYASAKUN SAOWALUK TAWANTHARONG SUWANNA SANTISOOKBUMROONG BOONLERT CHOMPOOBORISUTH SATHIT NIMITPAITOON. Definition.

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LCC

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  1. LCC Life cycle Costing

  2. Life Cycle Costing(LCC) Group 2 • SIRIWAN KEAWNGAM • VIJITTRA CHINTAPANYASAKUN • SAOWALUK TAWANTHARONG • SUWANNA SANTISOOKBUMROONG • BOONLERT CHOMPOOBORISUTH • SATHIT NIMITPAITOON

  3. 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.

  4. Concept & Methodology

  5. Procedure of LCC

  6. LCC Data Analysis

  7. LCC Activity in Japan

  8. Example 1:Tanabe 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

  9. 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

  10. Example 2:Nippon Paint Co., Ltd. • Product Line Paint product • Data Collection Two months • Scope of data collection • Material Cost • Energy Cost • System Cost • Waste Disposal Cost

  11. 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

  12. LCC Activity in Thailand

  13. 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.

  14. SWOT Analysis

  15. 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.

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

  17. 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

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

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

  20. THANK YOU FOR YOUR ATTENTION

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