For each of these phases, there are different costs. Designers are expensive, and it can take a long time to find out how to produce the right product. Manufacturing has to be set up. Packaging and transportation has to flow, and maintenance and repairs cost money, not to mention collecting and disposing/recycling used products. Initially, these costs have to be paid by the manufacturer, but eventually, they have to be borne by the customers. We have to make sure that we understand the difference between manufacturer costs and user costs.From the manufacturer perspective there are several cost groups:
- Manufacturing costs related to materials, transportation, research, product design, purchases, planning, construction/production costs, wages, certification, training and marketing.
- Operation costs such as maintenance, auxiliary costs, wages, taxes, training and transportation.
- End of life costing, including service fees, landfill fees and waste costs.
From the user perspective we can observe the same groups, but with different content:
- Manufacturing costs related to product/service acquisition or rental.
- Operation costs such as transport, energy, maintenance, auxiliary costs, taxes, insurance and others.
- End of life costing, including collection costs, disassembly, taxes and waste costs among others.
