Determination of the right level of detail: A methodical approach for life cycle costing integration in product development

In Life cycle costing the processing of the high amount of cost data is challenging for industrial companies. Depending on the existing product and business model the cost structure and the relevance of different cost types differs. To minimize the effort for data processing in product development, this paper presents a methodical approach to determine the needed level of detail concerning the consideration of life cycle cost. The necessary level of detail for business models can be defined by converting the existing cost data into a holistic cost model. The methodical approach presented is applied to an exemplary business model.