IP506621 - Life Cycle Management and Sustainability


Lessons are not given in the academic year 2021/2022

Course content

Many products have long lives and a significant part of the costs are incurred after sales (design, engineering, procurement, production, assembly, transportation, maintenance, repair and so on). To address this, there are several approaches that are used that will be discussed. They can be generally referred to as Life-Cycle Costing (LCC) approaches, and important key elements are:

  • Cost models and analysis 
  • Cost elements 
  • Investment analysis 
  • LCC as engineering tool 
  • LCC as management tool 
  • Uncertainty analysis
  • Levelized Cost of Energy (LCOE).

Learning outcome

Learning outcomes - Knowledge: 

After concluding the project the student should know the methodology and main principles of Life-Cycle-Cost Management.  

Learning outcomes - Skills: 

The student should be able to carry out any cost estimation task using available information, modelling uncertainty, necessary guides and books as well as understand and interpret the results.  

Learning outcomes - General qualifications:  

The student will learn about Activity-Based Costing, various Life-Cycle Costing methodologies, Monte Carlo simulations, modelling uncertainty, Economic Profit calculations as well as Net Present Value estimations. The student will learn how to combine these approaches to produce the best overall cost management advice to a decision-maker. 

Learning methods and activities

Class with a mix of lectures and exercises. 

Further on evaluation

Evaluation is done according to NTNU guidelines, with feedback from the class and meetings with the reference group. A final project report is delivered at the end of the course. 

Specific conditions

Admission to a programme of study is required:
Naval Architecture (850MD)
Naval Architecture (850ME)
Product and System Design (840MD)
Product and System Design (845ME)

Required previous knowledge

The following one course is required System Engineering.

Course materials

The course material will cover all. Those with a particular interest in the subject area are recommended to review Emblemsvåg, J. (2003). Life-Cycle Costing: Using Activity-Based Costing and Monte Carlo Methods to Manage Future Costs and Risks. Hoboken, NJ, John Wiley & Sons.p. 320.

More on the course



Version: 1
Credits:  7.5 SP
Study level: Second degree level


Language of instruction: English

Location: Ålesund

Subject area(s)
  • Marine Technology
Contact information
Course coordinator:

Department with academic responsibility
Department of Ocean Operations and Civil Engineering


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