Lifecycle Costing is the comparison of costs over a defined period rather than only initial price or monthly payment.
What it means in a workplace context
For furniture it may include acquisition, finance, delivery, maintenance, repair, moves and end-of-use.
Why it matters
It supports fairer comparisons between products with different useful lives and support needs.
Questions to ask
- What decision or requirement does Lifecycle Costing support?
- Which evidence or record is required?
- Who owns the information and keeps it current?
- How does it affect furniture selection, service or future change?
Applying the concept
When Lifecycle Costing is part of a commercial comparison, state the term, ownership position, payment assumptions, included services and end-of-term route. Confirm organisation-specific treatment with advisers.
Related Myntwork resources
Using the term in furniture management
Furniture management can make Lifecycle Costing easier to apply by linking products, locations, documents, service actions and lifecycle events. The level of detail should be proportionate to product value, operational risk and the decisions the organisation needs to make.
Review records after a move, repair, refurbishment or reporting cycle. Correct outdated locations, duplicate values and unsupported claims so future users can rely on the information.
