To The Question Of Evaluation And Use Of Life Cycle Cost Of Engineering Products

Abstract

Purpose. Development of methodical approaches to the valuation of the product lifecycle in engineering and construction criterion of selection of engineering products based on life cycle cost of the product. Method. The life cycle is understood as a set of interrelated processes of successive changes in the state of the product from research to the termination of its operation and utilization. Element of the cost of the product life cycle is understood as the financial equivalent of the costs associated with a specific process of life cycle of the product. Methodically determining the value of the product life cycle is based on discounting the predicted values of the elements of the life cycle for a period equal to the duration of the life cycle. Results. Economically sound decision regarding the selection of product innovation from the perspective of consumer, it is possible to make use of the cost index of life cycle of the product. Life cycle cost is defined as the sum of the current values of the elements of the product life cycle, all of which are the financial equivalent of the costs associated with a specific process of life cycle of the product. When determining life-cycle costs for comparison of products must use the same conditions regarding price level, discount rate and discount period. Selection criterion of the suggestions of the manufacturer (the developer) is the lowest value of life cycle cost of the product, subject to its determination for the same period of discounting, the same level price, under the condition of equality of the discount rate and comparability of the performance of the considered products. If not provided comparability in these conditions, a comparison of the life cycle cost does not ensure the selection of the most effective option. If the duration of the life cycle of the considered products is different, comparability the period of discounting can be achieved by comparing the current value of life cycles that repeat in time, which is equal to the least common multiple of the duration of the life cycle of the studied products. The comparability of price level adjustment is provided by the life cycle cost index method. The difference in performance of products is taken into account by comparison in terms of the specific life cycle cost per unit of performance, which is defined as the ratio of the value of the product life cycle to its performance. Scientific innovation. The work improved the criterion of the comparative economic efficiency of innovations on the basis of the comparison of life-cycle costs of products, which, in contrast to existing, provides comparability of variants on the period of discounting, price level and performance, which allows to use the indicator life cycle cost of the product for comparison of vehicles with different service life and different performance. Practical significance. The developed methodical approaches can be used to select the most attractive proposals of producers or industrial developers of products for tenders on the stages of determining the developer’s innovative product engineering or the definition of vendor engineering products. They can also use the innovative product development to select the best technical solutions and for other purposes.