A Model of Product Life Cycle Cost Management Based on the Example of the Spartan Multimedia Shooting Training System

Waldemar Swiderski,Wieslawa Rolek

doi:10.3390/economies9020090

Abstract

Cost management is a process that contributes to increases in efficiency that have an impact on a finished product. Comprehensive cost management uses information that is created by the cost accounting system and new concepts of measurement and valuation of product manufacturing costs. This paper presents the product life cycle costing (LCC) method and the target cost method as concepts used in cost management based on the example of the SPARTAN system. SPARTAN is a stationary training system designed to train, monitor and evaluate sighting and shooting techniques for small arms. The LCC method refers to the estimated cost of a product (in our case, the SPARTAN system) life cycle and it is calculated as the sum of the acquisition costs, ownership costs and operating costs. Having taken into account costs of acquisition, ownership and operation, the results of the LCC analysis were obtained, which show that, keeping in mind the whole life cycle cost, it will be more profitable to purchase the modernized version of the SPARTAN system despite its higher acquisition costs.

Highlights

The causative factors of the transformations that have taken place are, among others, globalization processes, development of modern technologies, increased awareness and customer requirements and, above all, the dizzying development of computer science and electronics, which contributed to an increase in the efficiency of computers and systems for generating images
life cycle costing (LCC) method, as mentioned above, refers to the estimated cost of product life cycle and it is calculated as the sum of the acquisition costs, ownership costs and operating costs
The difference that is notable in the case of purchasing the system after modernization is that with 100 intensively exercising soldiers over a service life of 20 years, the purchase is unprofitable

Summary

Introduction

The causative factors of the transformations that have taken place are, among others, globalization processes, development of modern technologies, increased awareness and customer requirements and, above all, the dizzying development of computer science and electronics, which contributed to an increase in the efficiency of computers and systems for generating images. This has enabled building virtual environments initially used in entertainment in various types of computer games, and creation of simulation techniques that can be used in practice. Familiarization with the weapons that covers knowledge of small arms, their operation and principles of effective use is an elementary part of training

Objectives

Methods

Conclusion