An LCC analysis calculates the cost of a system over its entire life span. The analysis of a typical system typically includes such costs as system planning and concept design cost, preliminary system design cost, design and development costs, product costs, maintenance costs, and disposal costs. This type of analysis often uses values calculated from other reliability analyses like failure rate, cost of spares, repair times, and component costs.

For instance, a company might use an LCC analysis to determine warranty costs. This type of analysis is based on anticipated failures, repair times, and costs of repairs. Many companies are finding that an LCC analysis is a valuable tool during the system design phase to determine the most cost-effective solutions before substantial costs are incurred. For more information, see Windchill LCC.