Engineering and Production Management

Total Cost of Ownership

Integrated course, 2.00 ECTS

 

Course content

• Types of life cycle costs, taking into account product usage and product life
• Factors influencing life-cycle costs depending on product type, product usage and product life
• Methods for determining the life cycle costs of different products
• Possibilities to influence individual cost elements in the context of product development
• Methods for the transparent presentation of total product costs considering the product life cycle
• Product life cycle costs, taking into account sustainability effects

Learning outcomes

After completing the course, students are able to:

• Estimate different lifecycle costs, taking into account product usage and product lifecycle, and work out the basics for a detailed analysis
• Determine factors influencing life-cycle costs depending on product type, product usage and expected useful life and weight them according to their significance
• Identify concrete options for influencing individual cost elements in the context of product development and work out optimization potentials
• Present methods for a holistic view of the product life cycle costs taking into account sustainability effects

Recommended or required reading and other learning resources / tools

Literature:
Lecture notes; handouts; S. Krischun: Total Cost of Ownership: Bedeutung für das internationale Beschaffungsmanagement; S. Krämer: Total Cost of Ownership: Konzept, Anwendung und Bedeutung im Beschaffungsmanagement deutscher Industrieunternehmen; S. Grewal: Manufacturing Process Design and Costing - An Integrated Approach; G. Blokdyk: Total Cost of Ownership TCO Third Edition; B.S. Dhillon: Life Cycle Costing for Engineers;

Mode of delivery

Lectures and tutorials

Prerequisites and co-requisites

Advanced Production Technologies, Advanced Materials, Engineering Data and BOM, Costing in Engineering and Production

Assessment methods and criteria

Written and/or oral exams