LCC life cycle cost and quality rating

Address

Entus Management s. r. o.
Jókaiho 5
821 06 Bratislava
IČO: 46 725 407

http://www.entus.sk/

Contact person

Rudolf Kurth
0948297208
kurth@entus.sk
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Description

Our developed rating systems enable objective pricing set-up throughout the life cycle in any production area. ENTUS - Efficiency Return of Sustainable Systems - means a system approach of our own concept. It is characterised by the sophistication of explicit assessment by attributes and quality standards of services and products across the entire supply chain.

LCC is a technical-economic assessment of both monetary and non-monetary inputs and outputs for production throughout the life cycle, and therefore pre-project, project, custom, implementation and routine operations. It enables a comprehensive assessment of the return on investments, including long-term environmental and social impacts.
TCO (Total Cost of Ownership) allows comprehensive quality assessment based on the product properties and alternative procedures to determine acceptable market price. Construction of the total cost of ownership (TCO) leads to full consumer awareness of price and quality.

Economic benefits

Current economic practice promotes in all areas the unilateral criteria of lowest price and profit from a commercial transaction. The multi-criteria method of evaluation allows to evaluate the total social benefit on the basis of the Best of Value by quantifying financially the savings of the necessary social costs of removing externalities, energy savings including tied energy, evaluation of positive externalities in price (quality characteristics, health effects). Our economic evaluation insures against the devaluation of innovative design solutions by constructors, designers against subliminally low prices and incomplete price calculations. It focuses on expressing the efficiency of investments in terms of long-term environmental benefit also with a conversion to the present environmental value of the investment.

Environmental benefits

Current systems, oriented towards lowest price and profit from commercial action, unilaterally favour conventional manufacturing industries that use non-renewable natural resources, fossil fuels either primarily for energy or secondarily as bundled energy and synthetic petroleum products. Environmental balances are not taken into account in the lowest price, which puts environmental investments at a disadvantage in the market, especially in the productive phase, especially with higher prices for bio-based products and recyclates on the market without accepting the SNA to reduce the environmental burden. The Entus Management, Ltd. methodology allows to explicitly address price in a way that such disadvantages do not occur, which means that it allows the promotion of environmental technologies in the market without unclear and discriminatory rules.

Examples of implementation of the solution in practice

The customers of Entus Management, s.r.o., prefer the concept of best price for quality and environmental solutions in both public and competitive competition. At the same time, they demand protection of their own innovative solutions from subliminally low prices. They have used the methodology of multi-criteria evaluation in public contracts for construction and reconstruction of buildings, roads, playgrounds, parking lots, investments for waste sorting and recovery in municipalities and cities. They are currently developing software applications for individual segments, especially in the areas of: pricing of products from bio-waste, insulation from recyclates, for low-energy and passive houses, organic farming and bio-economic assessment of food quality, etc. The company provides the client with applied database solutions.

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