Full definition
The total cost of owning, operating, and maintaining an asset from acquisition through disposal, including all direct and indirect costs over its entire service life. LCC analysis reveals that the purchase price is typically only 5-15% of the total ownership cost — the remaining 85-95% comprises: energy consumption (often the largest component for motors and pumps), maintenance and repair costs (labor + spare parts), unplanned downtime (lost production), operating supplies (lubricants, consumables), training, and disposal/decommission. LCC = Acquisition + Installation + Energy + Maintenance + Downtime + Disposal. Example: a premium V-belt costing 2x the price of a basic belt but lasting 1.5x longer with 30% less tension loss has a lower LCC due to fewer replacements, less downtime, and lower bearing loads. LCC analysis is the rational basis for: equipment selection (cheapest purchase ≠ cheapest ownership), maintenance strategy selection (PM/PdM investment vs. run-to-failure costs), and material specification (premium belts, bearings, seals vs. economy grades). Per ISO 15686-5 (buildings LCC), IEC 60300-3-3 (dependability LCC), and NIST Handbook 135. The LCC concept supports the B2B value proposition for quality industrial products.