Life Cycle Management - A Modern Approach For Business Efficiency

Just as biological processes and human life move through progressive stages of development, so too do products, systems and the set of management strategies that apply to each phase. The stages that scope and bound this process from initial inception to death is know as the life cycle. Life cycle management is the analysis of each stage of the life cycle to adjust processes according to a graded set of criteria. This criterion is weighted according to economic, social and environmental importance.

It is thought, that by analyzing each phase of the process, and investigating the input and output stages that a superior outcome can be produced. Companies and governments are adopting more progressive life cycle management techniques to not only improve productivity, profitability and sustainability but to minimize the social and environmental consequences of the process.

Life cycle management requires the ability to model and analyze the variables that comprise each stage of the process. This applies to the input and output level including stakeholder objectives, the analysis, design, development, procurement, implementation, logistics and waste disposal requirements. By knowing the consequences of each selected variable, opportunity costs and alternative scenarios can be graded according to best practice criteria. This can involve tradeoffs that are adjusted according to organizations objectives after considering the social, economic and environmental consequences. If the cost of producing cheaper packaging for a product results in difficulty disposing of the packaging, tradeoffs take place to balance environmental with economic objectives. This is an example of the process at work.

Life cycle management draws heavily on best practices in other industries. By using successful case studies, process improvements, and trends from other markets, companies can model processes by using a synergy of characteristics that can be adapted for company best fit. This progressive outlook can help streamline company processes and to produce superior economic, environmental and social outcomes.

The changing business landscape in response to the environmental legislative requirements is forcing companies to become more accountable. In the past, companies have not faced stringent requirements or scrutiny over their business practices. With the emerging movement towards environmental accountability, government and societal pressure is forcing big business to consider the implications. This is helping to put life cycle management of the agenda of the public policy decision making process.