From: AC Brent [abrent@postino.up.ac.za]
Sent: Tuesday, May 21, 2002 1:49 AM
To: methods@lcacenter.org
Subject: Method Development - Total Cost Assessment RESPOND TO THIS MESSAGE WITH ---REPLY TO ALL---

Dear Thomas and Gregory
 
I believe that the TCA methodology will be well received and especially in the South African industry. Heavy industry plays and important part in the South African manufacturing sector and possibilities to incorporate 'softer' costs into the overall decision structure for these industries have been discussed to some extent. As is mentioned in the TCA manual it is not intended for the tool to be a stand-alone but to support the overall decision process. Has some thought been given to the relationship of TCA compared to other proposed LCM methods, e.g. multi criteria decision analysis? The latter often stresses that costs can not be allocated to environmental and social impacts. However, subjective factors are required by these methods and TCA could possibly be used as a mechanism to determine these.
 
With reference to the specific cost types of TCA. It must be emphasised that, although the TCA approach may be credible, determining some of the probabilities will be challenging in developing countries. Type III, 'Compensation and punitive damages' comes to mind. Current hospitalisation costs due to on-going environmental releases and potential liabilities placed on specific companies in future is of concern, but actual quantification difficult.
 
The manual briefly addresses the overall framework of project evaluation and where TCA would fit in. Our interest lies in the project life cycle for new process development, the environmental and other 'softer' criteria that must be addressed at the decision (go, no-go) gates, level of detail of assessment during the different project phases, etc. The case studies and examples do not address this application extensively. Has TCA been applied in the process industry at this level, and is it possible to obtain more information in this respect?
 
Regards
 
Alan Brent
Chair: Life Cycle Engineering
Department of Engineering and Technology Management

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