The Role Of Whole-life Costing In The Acquisition Of Assets - A Case Study

Whole life costing is well developed on theory while it still does not affect the decision on assets acquisition an d management. The reason for that is r elated to fact or s such as the la ck of under standing, motivation for its application and un cert ain ties on whole life costing (WLC) analysis. In this con text the present work aims to identify the main components of an efficient WLC framework for it s implementation , and to carry out a detailed WLC analysis to identify the best option amongst alternatives. A seven steps iterative process is identified to allow the feed back to the design phase. Some important factors are identified and some particular emphasise has been made on the conflicts and barriers that can deviate the implementation from its stated objectives and goals. The uncertainty and risk framework has been revised to develop a tool to build a confidence level on the decision . A road map ha s been developed to reach the excellence level towards the best practices of WLC implemen tation . Finally; the present work has shown the significance of adopting WLC as a decision -making tool for a big company like SONTARACH. Besides, it has given good implementation guidance.