Interaction of the life-cycle approach into the decision-making process

The life-cycle concept has many different connotations. It is used to describe a life-cycle assessment (LCA) methodology which often implies a quantitative “cradle-to-grave” assessment of a product´s environmental impact loadings. The life-cycle concept is also used in life-cycle costing frameworks which attempt to identify the various costs associated with business activities. These applications often give decision-makers a one-sided perception of the usefulness of the life-cycle approach. Decision makers are often left with the impression that life cycle requires an enormous amount of effort or that it must be focused on solely environmental or cost issues. This paper examines the different ways in which the life-cycle approach can be applied in industry ranging from strategic life-cycle thinking to specialized life-cycle methodologies. It goes on to discuss how companies can define the specific issues to which the life-cycle approach can be applied and how to integrate existing life-cycle methodologies so that they directly address the decisions to be made