Utilizing Lifecycle Management for Cost Reduction in Sunstruck Solar Hot Water System

This article explains how Bream can use lifecycle management to decrease the cost of manufacture for the Sunstruck solar hot water system. It discusses the different approaches that can help product designers, manufacturers, and developers to evaluate the effects of a product and environmental benefits. The article also highlights the part of the value chain that may allow extra expense and how product design can enhance the overall product sale.

Running head: STRATEGIC MANAGEMENT ACCOUNTING 1
Strategic Management Accounting
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STRATEGIC MANAGEMENT ACCOUNTING 2
Question 4
Explanation of how Bream could utilize the lifecycle management to decrease the cost of
manufacture for the Sunstruck solar hot water system and the part of the value chain
that may allow extra expense
Essentially, lifecycle management is regarded as a flexible and integrated method to
company management that basically draws on the ideologies of life cycle rational so as to
assist companies of all forms such as retailers, manufacturers and professionals to apprehend
their respective environmental effects and where they arise in the operation lifecycle from
raw materials to finished goods (Stark, 2015). Basically, there are a number of different
approaches which can help product designers, manufacturers and developers to evaluates the
effects of a product and environmental benefits and this includes; life cycle matrix, life cycle
map, life cycle assessment and streamlined life cycle evaluation tools.
In this case, Bream could use the lifecycle management to decrease the cost of
manufacture for the Sunstruck solar hot water system by basically putting more capitals into
the products and process design phase and the develop diverse ways that could be utilized in
manufacturing (Gmelin, & Seuring, 2014). The product lifecycle demonstrates the overall
costs that include incurred and committed costs over each period of the product life. In this
case, almost all of the costs of the product are actually used in the stage of production of the
product lifecycle. For instance, planning of the product and the design of the concept which
often stages one and design and development as stage two (Frangopol, 2011). Moreover,
these two stages of the product life may incur extra expenses because the technology utilized
is newly developed and regarded as immature which leads to a significantly large amount of
capital for its development.
Evidence derived from the life cycle behaviour basically advocates that most costs of
manufacture are actually used in the phase of designing and thus it is challenging to attain

STRATEGIC MANAGEMENT ACCOUNTING 3
major significance once the product moves to the production stage. Therefore, the part of the
value chain that may allow extra expense is design phase as this part requires a significant
amount of capital for its initiation (Bey, 2018). Product design basically enhances the overall
product sale because customers will always go for a unique product in the market that meets
their preferences and satisfies their needs. This can be equalized by the successive savings in
the costs of manufacture and also in the consumer’s costs of services.

STRATEGIC MANAGEMENT ACCOUNTING 4
References
Bey, N. (2018). Life Cycle Management. In Life Cycle Assessment (pp. 519-544). Springer,
Cham.
Frangopol, D. M. (2011). Life-cycle performance, management, and optimisation of
structural systems under uncertainty: accomplishments and challenges 1. Structure
and Infrastructure Engineering, 7(6), 389-413.
Gmelin, H., & Seuring, S. (2014). Achieving sustainable new product development by
integrating product life-cycle management capabilities. International Journal of
Production Economics, 154, 166-177.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.