Why the Indian government does not have a Product Life Cycle Policy?

Why the Indian government does not have a Product Life Cycle Policy?

Why the Indian government does not have a Product Life Cycle Policy?

If we think of a human being like a product, then the entire life of the human being from the point it’s conceptualized (or conceived) to death can be considered as a product life cycle (PLC). Just like every human has one lifecycle, every product has one lifecycle from conception to phasing out.

 

Example: The product life cycle of a highway road is from the point it’s conceptualized to the point the original road is replaced or reconstructed with new road

The Life Cycle Cost of a highway road is the sum-total:

  • cost of survey
  • cost of design and engineering
  • cost of land acquisition
  • cost of road construction
  • cost of payments
  • cost of rain water drainage system
  • cost of traffic signal lights
  • cost of road illumination
  • cost of surveillance equipment’s
  • cost of traffic police
  • cost of administration
  • cost of the maintenance of road, payments, rainwater drainage, signal lights, surveillance equipment and safety instruments,
  • cost of reconstruction of the road, and
  • user’s cost Best-practice LCCA should reflect work zone user costs along with contract costs. Many contractors, however, have been reluctant to include work zone user costs with contract costs in LCCA calculations. Project design alternatives that reduce work zone user costs often entail higher agency expenses – not welcome in times of tight highway budgets. This is particularly true because contractor costs appear in contract budgets and user costs do not. Contractors may also perceive that there is too much uncertainty in valuing user travel delay time. Even if user costs are not counted on a Rupee-to-Rupee basis with contractor costs, quantifying them through LCCA informs decision makers about the “level of pain” to road users from any given project design alternative. It also provides an important perspective about the cost-effectiveness of strategies to reduce work zone disruptions. LCCA is used appropriately only to select from among design alternatives that would yield the same level of performance or benefits to the project’s users during normal operations. If benefits vary among the design alternatives (e.g., they would accommodate different levels of traffic), then the alternatives cannot be compared solely on the basis of costI believe that all the government investment on mega infrastructure projects such as rail, roads, bridges, flyovers of building etc. must have a Life Cycle Cost Policy
  • GSR
  • Life Cycle Cost Analysis – LCCA is applied when an agency must undertake a project and is seeking to determine the lowest life-cycle-cost (i.e., most cost-effective) means to accomplish the project’s objectives. LCCA enables the analyst to make sure that the selection of a design alternative is not based solely on the lowest initial costs, but also considers all the future costs (appropriately discounted) over the project’s usable life typically 20 to 30 years.
  • User costs are those costs pertaining to a project alternative that travelers, rather than the agency, would incur. User costs often vary significantly among alternatives, largely due to different work zone (disruptions of traffic due to road accidents and repairing of roads, and also due to cities and villages on the highway, may temporarily reduce road capacity and can create significant delays to the travelers) requirements for the construction of flyovers or alternative routes and rehabilitation activities associated with each alternative. Using available models, the analyst can estimate user costs associated with travel delay at work zones with some accuracy. Vehicle operating costs (VOC) in work zones can also be estimated, but these are typically small relative to those for travel delay. Work zones can affect safety, but work zone crash costs are sometimes omitted from Life Cycle Cost Analysis (LCCA) due to inconclusive data about crash rates and severities for specific work zone configurations and traffic management strategies.

I believe that all the government investment on mega infrastructure projects such as rail, roads, bridges, flyovers of building etc. must have a Life Cycle Cost Policy

GSR

 

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  • anarchs Reply

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    March 27, 2015 at 12:26 pm

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