Life Cycle Costing Finding

In management g everywherenment noteing, there argon various termsing manners applicable to use in practice. Some of practitioners are familiar with Job found saluteing, process apostrophizeing and activity based costing. The key idea is to apply the right costing method in the right situation. feeling wheel costing (LCC) offers an other choice to the user. It is usually found in manufacturing, construction, software companies and product development. As we know, consumer and coach aim to make finale on the cost of succeedment and cost of ongoing use of many contrary assets like equipment, motor vehicle, plant and other.As it seems, the key operator to influence the conclusiveness of acquisition on assets is the sign capital cost. In addition, the unrealized cost such(prenominal) as ongoing operation and maintenance cost should be considered before the decision making is made. living circle cost is a process to determine the sum of all the be related with an a sset throughout its manner which include acquisition, installation, operations, maintenance, renovation and brass be.For example, if the managers want to buy the motor vehicle for the adjudicate of company. They are needed to consider the whole breeding troll costing such as their maintenance, their peration, their initial acquisition, and other factor which locoweed give more than information to decision maker to make the damp decision. This report sets out to address what LCC, why LCC, when LCC, how LCC use on the manufacturing industry. The aim is to provide a exculpate understanding toward liveliness rhythm costing in theory and practise.FINDINGS 1 invigoration round cost purport cycle costing is estimates and accumulated costs all all over a products entire deportment cycle in order to determine whether the profits earned during the manufacturing phase will cover the cost incurred during during the pre- (upstream) and post- (downstream) storey. By understand on how to identifying the cost incurred during the different gunpoint of product life cycle, it might help the manager to manage the total costs incurred throughout its life cycle.In addition, life cycle costing is also helps managements deep understanding the cost consequences of developing and making a product and to identify area in which whitethorn cost reduction effective. The process of Live Cycle tolling involves l. Assessing costs arising from an asset over its life cycle. Asset life cycle consist of various phase which are planning, acquisition, managing, distribution, and disposition. Though the asset life cycle, all the cost arising from all(prenominal) phase must be estimated at the earlier stage to avail in the cost reduction.The acquirer should consider all relevant cost because it is not only most the initial investment and acquisition cost, but all cost occurred over the anticipated life cycle of the assets. II. Evaluating alternative that have an effect on th e cost of ownership. The comparisons of asset alternative whether it is at the opinion or detailed design level should be evaluate in order to chance on better outcomes from the assets. individually alternative may have different pros and cons. claiming unfriendly alternative may affect all the cost incurred during the period of ownership.Therefore, a thorough evaluation shall be made to avoid unwanted circumstances. For example, the restless call up industry such as Nokia, Samsung, HTC and other is a fast moving product. smell cycles are in short, mobile phone manufacturers spent lots of money on RD and they have to recover these costs in a short period of time. This explains why newly released mobile phones are sold at such mellowed prices. 1. 2) Reason for use Life Cycle embodying l. Comparison of asset alternatives to achieve better outcome from asset. Each asset lternatives should be evaluated so that it will assess the risk and emolument on every alternatives.A stra tegize development and implementation of plans and programs for the assets should be do to ensure that the assets operational objectives are achieved at optimum cost. II. Essential in determination of cost in the asset management process. It is important to identifying the cost in the asset management process whether the asset should be acquired, upgraded, maintained, or disposed of. It will dress a manikin on how the asset will be acquired planning for the upgrade and maintenance and disposal process will be managed. Ill. As managers tools in asset.An effective asset manager tools will help in delivering company objective effectively and efficiently. In addition, the managers tools will be helps by systematic tools like sparing appraisal, financial appraisal, value management, risk management and demand management in weighing up the costs and benefits, risks, objective, revenues and expenditures. V. Enables the decision maker to balance the performance, reliability, maintain ab ilities and other goals against life cycle costs. In order to achieve the outcomes that reflect performance, reliability and ability, the proper planning, allocation of ogether. . 3) It can be used in three stages Life cycle costing should be applied when there are three stages l. The conceptual stage This is the stage when the initial proposal for investments is being considered. It is to estimate the incoming cost and provision to be made over the life of the assets. For example, the different type and designs of machine to increase the sales production for the manufacturing industry. II. The acquisition stage. This is the stage where the supplier for the assets is being assessed. It is to assist in the selection of the most cost-effective option. Ill. The service stage.The stage of decision making on whether to maintain, improve or dispose of the assets. It is to improve the cost effectiveness of the production as puff up as to improve the specification of future assets. For e xample, when automotive manufacturing products their car product, they are improving their quality of car. So that to ensure the customer still keeps loyalty to buy their car for future. 1. 4) Estimate Life Cycle cost The formula to calculate the life cycle costing Life Cycle Costing = Capital Cost + Life Time Operating Cost + Life Time Maintenance Costs + Disposal Cost Residual Value Product Life Cycle PhasesFigure 1 illustrates the relationship between costs pull and costs incurred in the life cycle costing. It involves three stages of a products life cycle, the planning and design stage, the manufacturing stage and the service and distribution stage. Committed or locked-in costs are costs have not been incurred soon but that will be incurred in the future after the decision basis has been made. Costs are incurred when a resource is sacrificed or used. A system of costing is the record cost only had been done when they have been incurred.Furthermore, the costs that have been co mmitted are difficult to be alter. The pattern of cost commitment and incurrence will vary based on the industry and specific product introduced. During the planning and design stage, the cost management can be most effectively exercised compared to the manufacturing stage when the product design and processes have already identified and costs have been committed. At the post sales service and distribution phase, its focus more on cost containment than cost management. 1. 4. 2) Life Cycle Costing put The information should be obtained before selecting a model.This is to ensure that the compendium can be made. Evaluation should be made in considering the applicability f all cost factors, empirical relationship, constants, elements and variables. Life cycle costing model should l. Represent the property of the asset being analyzed. It includes the intended use environment, maintenance concept, operating and maintenance support scenarios and any constraints and limitations. II. sc hoolwide to include and highlight the relevant factors to the Life Cycle Costing asset. Ill.Easy to understand in order to brook timely decision making, future updates and V. Evaluate the specific Life Cycle Costing elements independently of other costing elements. 1. 4. ) Life Cycle Costing Breakdown into Asset Cost Some element need to be identified in Life Cycle Costing. This is because it requires the breakdown of the asset into its part of cost elements over time. The elements that should be considered are l. Significant amount of cost that generate components of activity. II. Time in the life cycle when conducting the activity. Ill.Resources cost categories that relevant such as material, labor, overhead, transportation and others. 1. 4. 4) Benefits of Life Cycle Costing The benefits the manager can gain from Life cycle costing are I. Planning and analysis of alternative solutions. It is to serve a framework to document and compare the alternatives to achieve significant cost benefits. Life cycle costing concept will give earlier actions to produce revenue or to lower costs. II. Selection of preferred alternatives. The decision maker can use the information for the selection process with the life cycle costing analysis.Better decision should follow from more realistic and accurate assessment of cost and revenue. Ill. Securing funding. The comparison between the alternatives that have different cash flow patterns over time is important. This is because there are corporate cash lows issues that need to be considered. Life cycle costing analyses provide a basis for projecting cash requirements. V. Review. The life cycle costing can serve confirmation of the reliability of the life cycle costing model. Besides, the credibility of future life cycle costing plans can be achieved. . 4. 5) Life Cycle Costing Process Life cycle costing involves six stages which are Stage 1 Plan Life Cycle Costing The documentation of the plan needs to be done at the beginning to serve a framework of life cycle costing. This plan must be review to ensure the plan has been interpret mightily and address clearly. Stage 2 Select or Develop Life Cycle Costing poseur All relevant categories of cost that will happen in phases of life cycle should be identified. Select a method for estimating the associated cost and develop the estimates.Stage 3 Apply Life Cycle Costing Model Life cycle costing model need to be validated and obtain the model results from each relevant combinations and support scenarios defined in the analysis plan. Stage 4 Document and Review Life Cycle Costing Results The documentation of the results should be done to ensure the users understand clearly the results and affects of the analysis along with the constraints and Stage 5 Prepare Life Cycle Costing Analysis Life cost analysis used to control and manage the ongoing costs of assets or part thereof.It involves review and development of the life cycle costing model asa cost control mecha nism. Stage 6 Implement and Monitor Life Cycle Costing Analysis Life cycle costing should have a continuous monitor of the actual performance of an asset during its operations and maintenance and to provide feedback for future reference. 1. 4. 6) Application to industry For pharmaceutical products, the product life cycle is becoming shorter and shorter s new products keep being developed for the merchandise demand purposes.It is not surprising that new drugs are being sold at very high prices. For example, drugs which are used to fght cancer in targeted therapy can cost a patient on second-rate RM 20,000 to RM 200,000 per month. Again, the life cycle is short (or uncertain), and pharmaceutical companies need to pay back the initial costs in R&D in a short period making high prices necessary. You can intend how much the companies need to pay for a team of top tier scientists who have been working in the laboratory day and night for many twelvemonths while developing the drug.Fi nally, as a short revision on life cycle costing, suppose a new cancer curing drug XXX is expected to have sales of 100,000,000 units in the coming 10 years. The selling price is targeted at RM 1,000 per unit. R&D is RM 10,000,000,000, design cost is RM manufacturing cost RM marketing RM distribution costs another RM 100,000,000 and finally customer service RM 50,000,000. Find the life cycle profit for XXX as follow RM Millions gross revenue Design Manufacturing Distribution Marketing Customer service Life cycle profit 1 oo,ooo (10,000) (500) (1000) (100) (50) 88,250 The life cycle profit is RM 88,250 million (or RM 88,250,000,000).It is for 10 years and thus on average every year the profit is RM 8,825 million which is quite normal for leading pharmaceutical companies. It can be seen that the total life cycle cost is RM 11,750 million and RM 10,000 million (or 85. 1%) spent on R&D. Life Cycle Costing can be conclude as key asset management tool which takes into account the whole o f life implication on the asset starting from the cost planning, acquiring, operation maintaining and disposing. It assist in analyse not only the cost of acquiring an asset but also the costs over an assets life like long-term operational nd maintenance costs.In addition, it will be the guidance on how long term strategic planning process, analysis, evaluation and decision making process towards the asset managements. The better(p) expected outcome can be managed if all the relevant cost and benefits over life thwart of an asset is taking into account. Lastly to overall cost involve in owning, operating and maintaining an asset from the initial planning up till disposal. Thus, selecting the best alternative in order to minimize the possible cost incurred and maximizes the potential savings that can be made.

Case Study Mercy Corps Essay

entree At the foursometh biennial Mercy army corps leading conference in November 2006 executive leadership described the well-known, internal complications at Mercy Corps as a large memorial tablet ($194 billion budget in 2006) that has to focus on two core aras international relief and development (Grossman & King, 2008). The situation of the constitution was examined in detail by the Harvard Business School case study and a minute of problems were revealed. This analysis is based on the information provided by the case study and addresses four issues.The first department discusses three forms of specialism and how they are relevant to Mercy Corps. The second section addresses the five different forms of integrating in an make-up. The third section evaluates the use of differentiation and integration in the constitution and the success of differentiation and integration. In the last section I examine whether Mercy Corps is a mechanistic organization or organic organi zation. Changes in Differentiation As discussed in class and in assigned narration for PUB M 511 there are three forms of differentiation.This is essentially how an organization divides its labor into distinct tasks and hence coordinates them (Hodge & Anthony, handout). Hodge & Anthony have defined the three forms of differentiation as 1. Horizontal differentiation differentiation of work into tasks at the same level of organization. 2. Vertical differentiation division of work by level of authority, hierarchy, or reach of command. 3. Spatial differentiation refers to geographical dispersion. All three forms of differentiation are relevant to key issues in the Mercy Corps case.Horizontal differentiation is clearly unadorned when the four program directors formerly administer 40 unpolished directors were replaced by six regional program directors. Effectively, a new department was added and the account structure was changed so that country directors were now reporting to th eir respective regional director who inform to the Portland, OR HQ and not the program directors in Portland, OR. Because the reporting structure was changed the country directors now had one much step before reaching the HQ.On the other hand country directors now had a smart response rate for questions that were not critical. Vertical differentiation was overly apparent at Mercy Corps. 1 example of vertical differentiation at Mercy Corps was Zimmermans purview. Originally program directors reported to the chair but now regional program directors (replaced the four program directors) reported to Zimmerman. This removed the president from the regional program directors it also helped the president focus on strategic initiatives and become the face of the organization instead of the day-to-day administrative functions.Mercy Corps had a strong sense of spatial differentiation. With 3,000 aggroup members spread out across the world the organization had a strategy that kept the t eams abroad adjust with the mission. All teams, despite their geographical locations, align their country goals to their greater vision and mission of Mercy Corps. Although country directors get great autonomy in how they run their program and where their funding comes from they still are workings towards a shared goal. Changes in Integration Many of the forms of integration were significant in the Mercy Corps case.As defined by Hodge & Anthony in the handout provided in class the Five Forms of Integration are defined as 1. Formalization utilization of formal rules, policies and procedures. 2. Centralization of decision-making or authority refers to the place in the hierarchy where decisions are made. 3. Span of Control refers to the number of immediate subordinate positions a managerial position controls or coordinates. 4. Standardization integration can be achieved through a process, input (human resources and materials), and output standardization. 5.nonstructural means for integration refers to the coordination mechanisms including liaison roles, teams, culture, information systems, and communication processes. The Mercy Corps case starts out using formalization at the country director president. Communication channels are well defined and employee and round know whom they report to. After the addition of regional directors another layer was added to the communication process. The policies and procedures were formalized and understood by all employees and staff and fol showtimelyed so that funding and program goals could be met.Centralization was not evident at the organization level. It was evident at the country level, where country directors were given permission to run their programs in the most efficient way for that country. Span of control was reasonable for the staff of Mercy Corps. Previously the four program directors had 40 direct reports. This changed when six regional program directors. While span of control was compliant the stan dardization process was not. The human resources team small compared to other organizations of the same size.The human resources team also was based primarily out of the Portland, OR office with one person in Scotland. In call of non-structural means for integration, Mercy Corps has liaison roles and communication processes in place. Mercy Corps also has a culture that is adapted by all teams across the globe. Appropriateness of Use of Differentiation and Integration & success with Differentiation and Integration Mercy Corps used differentiation and integration in a winning way.By leveraging both the amplys and the lows of differentiation and integration the organization can function at high operational and strategic level. Mechanistic Organization vs. Organic Organization Mercy Corps as a whole runs like a very mechanistic organization. While the country offices run more in like manner to a organic organization. As defined in the handout by Hodge & Anthony a mechanistic organi zation is high vertical and horizontal complexity, high formalization, narrow spans of control, high centralization and high standardization.While a organic organization is defined as low vertical and horizontal complexity, low formalization, broad spans of control, low centralization and low standardization. Conclusion In conclusion, Mercy Corps embodies high differentiation and integration at an organizational level. At the field/country level it seems to operate more on a low differentiation and integration. Therefore, the organization as a whole is run as a mechanistic organization and the field offices are run more organically with more autonomy.References Grossman, Allen S. , and Caroline King. Mercy Corps military position the Organization to Reach New Heights. The Harvard Business School (2008) 1-24. Print. Hodge, Anthony and Gales. Organizational Goals and Effectiveness, Organization Theory A strategic Approach. 6th Ed. , 2002. Print. Hodge, Anthony and Gales. The Nature of Structure and Design, Organization Theory A Strategic Approach. 6th Ed. , 2002. Print. Morgan, Gareth. Images of Organization. Thousand Oaks able Publications, 2006. Print.

Impact of Leadership in Organizational School Culture Essay

Impact of leadership in Organizational School Culture - Essay ExampleShe acknowledges that they do not respect for each one other due to lack of a consistent socialisation. The principal thus decides to institute a culture week to have the students showcase different cultures to ease the apparent tension. Lack of a homogenous tame culture is both oppressive and discriminatory for other subgroups found within the train. The decision to include students in the management of their affairs is critical in effecting change that directly touches on their problems. Second Staff stability to facilitate the development of strong cohesive school culture. Patricia Morgillo was posted to Quinnipiac Elementary School a anteriority school by designation of the state. The design was based students needing an intervention on the CMT. The school would receive more than funding from New Haven school district, but stigma was directed to its teachers and pupils. She decided to refer to the school s selective information to mobilize support for improvement from students and teachers. Previous administrators had not used hard data effectively to improve students potential. In fact, when I first came here, they used check marks to track students in the main on behavior, Morgillo said. Quinnipiac was a community school, and Morgillo knew staff had to examine statistics and soft data to implement change. Dr.Osborne, an executive in the districts priority schools devised an action plan for addressing low test scores, strengthened professional development, and exploitation data to effect change in different strands of the Connecticut Mastery Test.

Interact between acient Mesopotamia and theis enviroment Essay

Interact between acient Mesopotamia and theis enviroment - Essay ExampleThe people believed in a inconsistency between animals and humans. This is the reason why the trapper used a woman to seduce Enkidu so that when the animals noticed that Enkidu fixed with a woman, they left him. Natural fast including both vegetarian and non-vegetarian food was considered as the ascendent of enduringness in the Mesopotamian civilization. Enkidu ate grass in the hills with the gazelle and lurked with kookie beasts at the water-holes (26). Eating natural grass was considered as the source of strength as Enkidu was believed to have gained his strength from eating the wild grass of the hills with the gazelle. As Ninsun says to Gilgamesh, He is the knockoutest of wild creatures, the stuff of Anu born in the grass-lands and the wild hills reared him (28). Likewise, when Enkidu entered Uruk, the people spoke of connections between his strength and the natural diet he consumed This is the one who was reared on the milk of wild beasts. His is the greatest strength (29).The people of Uruk had a tight belief in the physical strength of animals in general and the bulls in particular which is why Gilgameshs strength is compared to that of a wild bull. Similarly, when Enkidu encounters Gilgamesh at the gate of the home where Gilgamesh is about to make love to the bride, the strength of both Gilgamesh and Enkidu is compared to the strength of bulls in these words, so they grappled, holding each other exchangeable bulls. They broke the doorposts and the walls shook, they snorted like bulls locked together (29). When Gilgamesh throws Enkidu during the fight, Enkidu attributes the strength of Gilgamesh to the strength of his mother, There is not another like you in the world. Ninsun, who is as strong as a wild ox in the byre, she was the mother who bore you (29).Concluding, the Mesopotamian civilization considered natural diet including grass and the milk of animals as the source o f strength. Natural diet was probably

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Nuclear Power - Research Paper ExampleEnergy experts develop huge dams in order to seize the water, which generates hydro causation energy. Consequently, these constructions disrupt flow of rivers, which further result to plausible internal calamities for example, overflows in rivers. In addition, the construction of dams facilitates the impediment of natural flow of sediments in the river. Variably, the impediment results to rivers losing their banks. Moreover, individuals lose their worldly concern because of the evictions, which follow the construction of the dams (Murray 2009).Development of nuclear power facilitates the following consequences first, from the Fukushima Nuclear Disaster an individual depicts that the power supply in a nuclear plant suffers susceptibility of disability. For example, the machinery at Fukushima experienced a study nuclear accident because of the consequent chilling of the elements of retort. In addition, there are usually, constant releases of ra dioactive materials, which acerbate such par number phenomenon as rivers (Bodansky 2004).Variably, contaminated waters from the plants leak out and cause melanoma and some other precarious ailments to individuals. However, the Fukushima Nuclear Plant presents such advantages as generation of a significant high amount of energy from that single plant. Consequently, the plant does not release green house gases, which result to negative aftermaths of universal warming. Clearly, unconventional sources of power produce harmful green houses gases hence causing mountains to lose their snowing abilities (Bodansky 2004).Second, the Chernobyl Nuclear nuclear meltdown released twenty five percent of radioactive reactor materials. Additionally, the historical accident registers deaths of individuals and continuous re-settlement of people who lived just about that area. Further, there were various psychological impacts on the people who experienced the Chernobyl accident (Bodansky 2004).Altho ugh