1997-04-08

Life Cycle Management Case Study of Three Engine Oil Filters 971209

Life Cycle Management (LCM) is a method for incorporating costs which have historically been considered indirect or overhead costs into a traditional cost analysis. It is a comparative, decision making tool, which combines the systems based thought process and environmental focus of Life Cycle Assessment (LCA) with the cost evaluation process used in Activity Based Cost (ABC) accounting. However, unlike LCA, this type of analysis may be performed in a matter of weeks rather than months because the boundaries are drawn around the manufacturing facility and the disposal of the material or end product. This paper describes the stepwise approach used in performing a LCM study and also presents a case study of three engine oil filters.

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