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Weekly Discussion 3
Swetha Shankar
University of the Cumberlands
BADM-623-M51- Project Management Processes
Dr. Susan Irwin
September 8, 2021
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Weekly Discussion 3
What is lifecycle costing? It is from the planning to disposal over the useful life of the
product. It is the full cost and ownership of a product. In the previous chapters, we went over
economic analyses and different processes such as agile, waterfall method and spiral method.
Some key terms I think are important is estimates, it starts in the initial phase and many
unknowns of the product. The rough order of magnitude is in the initial phase and has a high
degree of variability. But as you move from planning into execution, the accuracy gets better to
finally get to the true cost. Estimates can go through more phases and improved accuracy as you
move through the project and get more knowledge about the product. There are many errors in
the initial phase because the product is still new and as you progress in the life cycle, the
estimate errors reduce. The disposal costs are also important in the lifecycle because there may
be additional costs to removing or destroying the product that need to be factored in. There are
also direct and indirect costs that determine the production costs. Direct costs are like labor, the
cost of parts. Indirect costs would be like the cost of rent, it may not directly be an expense for
the product, but it plays a part in the production process.
Discuss the effect of taxes on the life-cycle costing (LCC) of passenger cars. Compare
domestic and imported cars.
Buying a car has more of an impact now due to materials, energy consumption and
sustainability. Emissions and time losses are added up as costs on the consumer life cycle. The
cost of emission may have an effect on the taxes in that particular country. The pricing of
gasoline, the electrical power and amount of pollution also play a part in life cycle costs. In the
United States some of the taxes include fuel taxes, sales tax rate (both state and local), license,
registration and taxes are based on the governmental taxes and fees. Fueled vehicles have
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additional taxes based on the type of environment, as some have lower pollution alternatives and
creates a more competitive environment for these alternate vehicles. In the United States, there
are tax credits and other incentives provided to decrease the costs for vehicles that have a high
environmental impact. Many domestic and imported cars are focused on environmental impact
and stimulate the demand for clean vehicle technologies.
Discuss the effect of LCC on the decision to locate a new warehouse
Some lifecycle costs of locating to a new warehouse is the use of the operations
machinery and maintenance. The cost of moving the machinery or buying new machinery and
disposing of the old ones are costs that can add up very quickly. Comparing benchmarks such as
material costs and man-hours, plus the cost of upgrading the existing facility all give the project
manager an idea of what costs they are expected to incur. Energy costs or operating costs
depending on the size of the new warehouse could increase project costs overall.
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References
Shtub, A. (2016). Project management. Pearson.

Unformatted Attachment Preview

1 Weekly Discussion 3 Swetha Shankar University of the Cumberlands BADM-623-M51- Project Management Processes Dr. Susan Irwin September 8, 2021 2 Weekly Discussion 3 What is lifecycle costing? It is from the planning to disposal over the useful life of the product. It is the full cost and ownership of a product. In the previous chapters, we went over economic analyses and different processes such as agile, waterfall method and spiral method. Some key terms I think are important is estimates, it starts in the initial phase and many unknowns of the product. The rough order of magnitude is in the initial phase and has a high degree of variability. But as you move from planning into execution, the accuracy gets better to finally get to the true cost. Estimates can go through more phases and improved accuracy as you move through the project and get more knowledge about the product. There are many errors in the initial phase because the product is still new and as you progress in the life cycle, the estimate errors reduce. The disposal costs are also important in the lifecycle because there may be additional costs to removing or destroying the product that need to be factored in. There are also direct and indirect costs that determine the production costs. Direct costs are like labor, the cost of parts. Indirect costs would be like the cost of rent, it may not directly be an expense for the product, but it plays a part in the production process. Discuss the effect of taxes on the life-cycle costing (LCC) of passenger cars. Compare domestic and imported cars. Buying a car has more of an impact now due to materials, energy consumption and sustainability. Emissions and time losses are added up as costs on the consumer life cycle. The cost of emission may have an effect on the taxes in that particular country. The pricing of gasoline, the electrical power and amount of pollution also play a part in life cycle costs. In the United States some of the taxes include fuel taxes, sales tax rate (both state and local), license, registration and taxes are based on the governmental taxes and fees. Fueled vehicles have 3 additional taxes based on the type of environment, as some have lower pollution alternatives and creates a more competitive environment for these alternate vehicles. In the United States, there are tax credits and other incentives provided to decrease the costs for vehicles that have a high environmental impact. Many domestic and imported cars are focused on environmental impact and stimulate the demand for clean vehicle technologies. Discuss the effect of LCC on the decision to locate a new warehouse Some lifecycle costs of locating to a new warehouse is the use of the operations machinery and maintenance. The cost of moving the machinery or buying new machinery and disposing of the old ones are costs that can add up very quickly. Comparing benchmarks such as material costs and man-hours, plus the cost of upgrading the existing facility all give the project manager an idea of what costs they are expected to incur. Energy costs or operating costs depending on the size of the new warehouse could increase project costs overall. 4 References Shtub, A. (2016). Project management. Pearson. Name: Description: ...
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