Life Cycle Costing of Technology Use

Q. Show the method to calculate life cycle costing of technology uses in rice production?

Technology can be embodied in various forms, such as machinery, equipment, documents, process and skills, it conveys different meanings to various people context, but; technology is defined here with respect to origin, purpose and characteristics. In another words technology is man made. It is a means to enhance the physical and mental capabilities of human beings.

Technology life cycle:

From the management and investment viewpoint the technology life cycle consists of four distinct stage 1) innovation stage 2) syndication stage 3) diffusion stage and 4) substitution stage.

Life cycle costing of technology--

Life cycle means the origin to destination. After some time period of installation the value will be zero then transfer to another technology & newly benefited.

Life cycle analysis concerns the money flow. Total buying cost transferred to

• Yearly cost
• Preservation cost

• Aim to selection of the most suitable & economic solution

Aim to selection of the most suitable & economic solution

Fig 1: Active life cycle costing of different stage

Life-cycle cost analyses concern the money flows, partly speculated, during the life-cycle of a whole machine or technology or part of it. Then planning and technology costs are transformed into annual cost and also maintenance cost and periodically occurring renovation cost are taken into consideration. On the whole, life-cycle management is an iterative process aiming at the selection of the most suitable and economic solution from many alternatives.

Figure 2: life cycle costing.

Life cycle cost can be defines with and example and figure 2, such as, if one machine or any planning or any technology starts, it the initial level maintenance cost was zero (0) but after with time increases, maintenance cost of the machine or technology increases. This increase turns one day when profit from the technology and maintenance cost would became same. It is the point where substitution arises and it is the point of time determines lifecycle cost of the machine or technology.

Life cycle cost of Rice production:

For rice production life cycle cost of any technology can be estimated. Here also the cost would be estimated using same mechanism. As, Buying cost of new machine involves at the first stage of technology in rice production, then after some time first time repairing two units arises, Profit from the units earned, still production is ongoing but after that when second time repairing cost two involves. And thus the decrease of profit of the units takes place. Failure the machine creates replacement need. And this is the end of the technology or lifecycle of the machine or technology.

In rice production there is different technology can be used such as power tiller, technology in rice husking mill such as auto mini-auto rice milling machine etc. all of the technology costs through the same way as described previous. Such as before to plough the land the plough was generally used that is a technology but by the course of the time this old technology was replaced by the power tiller. Same as in rice husking before there were wide use of Bengal Wheeler but now a days that are replacing by the auto or mini-auto rice mill.