Life cycle costing
You'll learn what lifecycle costing is and why it matters for product profitability. This video explores how to evaluate products across their entire lifespan—from development through abandonment—rather than just annual periods, helping you understand the true cost and return on investment.
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In this lesson
- 0:00 Introduction to Lifecycle Costing
- 0:53 The Five Stages of Product Lifecycle
- 2:12 Development Stage and R&D Investment
- 3:36 Introduction Through to Maturity Stages
- 4:49 Why Annual Thinking Misses the Picture
- 5:27 Forecasting and Monitoring Across Lifecycle
- 6:48 R&D Spend Impact on Future Costs
- 8:03 Key Factors Lifecycle Costing Emphasises
- 10:53 Pricing, Decision Making and Performance Benefits
About this lesson
You'll discover why early-stage decisions in research and development can determine up to 70% of future production costs, and how to use this insight for better pricing, decision-making, and performance management. This technique is essential for high-tech and capital-intensive products, and is directly relevant to your Performance Management and Advanced Performance Management studies.
Duration: 12m
Transcript
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