Introduction to Total Cost Assessment

In business, we assess decisions based on expected Net Present Value or Return on Investment. In many cases, however, the real NPV or ROI is affected by events that were not considered in the initial calculation. Total Cost Assessment is a methodology that systematically identifies and quantifies both upside and downside risks to give a picture of the future reflecting the real uncertainties surrounding the decision. TCA includes the traditional costs associated with a decision, and can apply Real Options Analysis as a part of the assessment.

In this course, you will learn the five different cost types and the seven steps in the TCA Methodology defined by the American Institute of Chemical Engineers (AIChE). In addition to the databases developed by the AIChE to assess contingent liabilities and potential fines, we will explore the costs associated with brand value, morale, community relations, and other intangibles. We’ll follow up with a simple example showing how the methodology works and the insight it provides to a decision.

Trainer: Lise Laurin, EarthShift
Lise founded EarthShift to help businesses think differently about our natural resources. Lise has worked extensively with the AIChE and Dow Chemical continuing the development of TCA and tools for the analysis. She provides TCA consulting to businesses and non-profits.