Life Cycle Cost Framework for Enhancing Sustainable Manufacturing and Energy Efficiency of Production Assets

This study presents a life cycle cost (LCC) oriented framework aimed at enhancing sustainability and energy efficiency in manufacturing processes. It contributes to cost-effective energy management and energy efficiency optimization. The framework comprises various elements and modules to assess production assets’ LCC and demonstrate cost savings from energy optimization models and technologies. The main cost categories include capital expenditures (CAPEX), direct operational expenses (OPEX), and costs associated with productivity and material losses. The framework’s productivity and material loss cost module analyzes the life cycle cost impact of material losses due to waste and scrap, rework needed due to scrapped parts, and costs associated with machine downtime, idle time, and setup time. The iterative development, testing, and validation process ensured the framework’s robustness and practical applicability. The diversity of the manufacturing sector represented by the pilot companies ensured complementary and comparable cases. Future research phases will further employ the framework and the associated LCC tool for a second round of LCC assessments in the case study companies, comparing the current state (as-is) with the projected state after the implementation of the energy optimization solutions developed in the H2020 DENiM project (to-be).