Is this a correct approach?

Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier.

Is this a correct approach?
A . Yes, decommissioning and disposal costs will not be accounted in this approach
B. Yes, this approach will lower the total cost of ownership
C. No, a ship is used only once, through-life management is unnecessary
D. No, the company just needs to select the lowest bidder

View Answer

Answer: B

Explanation:

Through-life management is a approach applied to capital asset. According to Ward and Graves, Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.

According to CIPS study guide, through- life management comprises of 6 parts: