When lifecycle cost analysis enables strategic design considerations

Abstract

The literature on cost-estimation is full of examples that methodologically explain the construction of models. In this paper, we showed how such methods when correctly implemented represent a source of structured information for in-depth design decisions. We investigated the impact of variety proliferation overall lifecycle costs, assessing differences in product architectures using a cluster analysis. The evidence collected serves as validation of a cost model approach and provides a decision-making support for choosing between platform solutions against a knowledge of costs consequences.