LIFE CYCLE ANALYSIS

DEFINITION
Life cycle analysis is a systems approach to evaluating the environmental consequences of a
particular product, process, or activity from cradle to grave. By taking a snapshot of the
entire life cycle of a product from extraction and processing of raw materials through final
disposal, LCA is used to assess systematically the impact of each component process.

ORIGIN
Life cycle analysis has its roots in the 1960s, when scientists concerned about the rapid
depletion of fossil fuels developed it as an approach to understanding the impacts of energy
consumption. A few years later, global-modeling studies predicted the effects of the worlds
changing population on the demand for finite raw materials and energy resource supplies

COMPONENTS
Ideally, a complete LCA would include three separate but interrelated components: an
inventory analysis, an impact analysis, and an improvement analysis. The components are
defined as follows:

a. Life Cycle Inventory. An objective, data-based process of quantifying energy and raw
materials requirements, air emissions, waterborne effluents, solid waste, and other
environmental releases incurred throughout the life cycle of a product, process, or
activity.

b. Life Cycle Impact Assessment. An evaluative process of assessing the effects of the
environmental findings identified in the inventory component. The impact assessment
should address both ecological and human health impacts, as well as social, cultural,
and economic impacts.

c. Life Cycle Improvement Analysis. An analysis of opportunities to reduce or mitigate

the environmental impact throughout the whole life cycle of a product, process, or
activity. This analysis may include both quantitative and qualitative measures of
improvement, such as changes in product design, raw material usage, industrial
processes, consumer use, and waste management.

KEY VARIABLES

Procurement cost
Delivery and installation costs
Annual operating costs including the costs of energy, supplies, labor, materials, and
insurance
Annual maintenance cost
Taxes
 Salvage value or disposal cost
Life cycle in years
Discount and escalation (anticipated inflation) rates

FRAMEWORK

Figure 1 LIfe Cycle Analysis

Figure 2 Life Cycle Assessment

APPLICATION
Typical life-cycle cost analysis applications include:

Aircraft
Computers
Military systems
Heavy industrial equipment, tractors
Automobiles and tires
Ships
Appliances (e.g., lighting, cooling, heating)
Hospital facilities and medical equipment
Buildings
 Office equipment
Energy systems

REFERENCE:
Note on Life Cycle Analysis - University of Michigan. (n.d.). Retrieved December 3, 2017, from
http://www.bing.com/cr?IG=DDBA05A2F7974508BCA4F59D965B9375&CID=0653854A7601671
51E618E04770766D3&rd=1&h=COqsZ7acPev1xYERiTfq4CTWK9x00NZNm9p9jXsOiF0&v=1&r=ht
tp%3a%2f%2fwww.umich.edu%2f%257Enppcpub%2fresources%2fcompendia%2fCORPpdfs%2f
CORPlca.pdf&p=DevEx,5067.1