THE COST FOR THE ENTIRE LIFE CYCLE OF THE PRODUCT RESPECTING QUALITY STANDARDS - Polish Journal of Management Studies

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THE COST FOR THE ENTIRE LIFE CYCLE OF THE PRODUCT RESPECTING QUALITY STANDARDS

Abstracts > Vol 4

THE COST FOR THE ENTIRE LIFE CYCLE OF THE PRODUCT RESPECTING QUALITY STANDARDS

Mariana Man, Vladimir Modrak, Ioan Constantin Dima, Piotr Pachura


Abstract:


This article presents issues concerning life cycle of products. Taking into account the limitation of the life cycle of products and strategic investments that require the use of certain technologies, the decision of setting forth a new product on the  market should rely upon the costs of its life cycle.

Keywords:
life cycle of the product, quality standards, optimization


Introduction:

Taking into account the limitation of the life cycle of products and strategic investments that require the use of certain technologies, the decision of setting forth a new product on the market should rely upon the costs of its life cycle. Each setting  forth of a new product determines: research and development costs, equipment costs, pre - industrialization costs and implementing costs, production costs, marketing costs, logistics costs (that is costs with storage, distribution and transport), administration  cost, and costs of the customer focused services, etc[1] The success of such a setting forth should be based on optimizing the global cost of the product life cycle. Such an optimisation consists in choosing between the decrease of development costs in case subsequently it will be necessary to operate several changes of the product due to industrialization problems or due to a poor adaptation to the customer's demand or the decrease of production costs that might determine a series of quality find  guarantee term drawbacks, and the increase of post - selling service costs (guarantee term)[2] The stages of conceiving the product, of choosing its fabrication procedure are difficult, having consequences upon the evolution of future costs, and making  useless the optimization of a single stage without taking into account the impact upon the others. Accordingly, it is necessary to determine a cost that has in view most of the problems of the life cycle of the product (that is a global cost), and to  optimize the product's conception by using the target costing technique (that is an objective costs)[3] ....

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Summary:

The optimization of the global cost of the life cycle of the product starting from its utility cost for consumers, as quite useful could be the appreciation of the costs the buyer has to pay during the use of the product; also the question regarding the  acceptability of such costs for the buyer may be asked. Such estimations are going to direct conception towards products that are easily disassembled and fixed, that are rapidly adjusted, having a long life cycle, with drawbacks that comprise few components  and whose elements are inter-changeable with common elements, etc. By calculating the costs of non-quality and those regarding the quality of the product's life cycle, accounting is not only a means of analyzing but it becomes a control instrument. In  such a case we propose the method for the calculus of the costs of dissatisfied customers, employed by Original Research, a counseling company in Chicago, specialized in measuring the degree of fidelity.


References

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Grabara I., Nowakowska A.: Reverse Logistcs As the Element of Enterprise Management. Annales Universitatis Apulensis. Series Oeconomica. Vol. 2 nr 9, 2009, pp. 396-402.
M. Starostka-Patyk, Logistic Management of Waste Streams in Sustainable Development Conception. W: The Role of Business in Achieving Sustainability. Part 2: Implication for Industry. Ed. Vladimir Modrak, Beata Slusarczyk.  Wyd.Techn.Univ.Kosice, Presov 2010
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, Craiova, Romania 2008.

Streszczenie:


Artykul prezentuje kwestie dotyczace cyklu zycia produktow. Biorac pod uwage ograniczenia cyklu zycia produktow oraz inwestycje strategiczne, ktore wymagaja wykorzystania okreslonych technologii, decyzja o wdrozeniu nowego produktu na rynek powinna opierac  sie na kosztach ich cyklu zycia.

 
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