Abstract: The concept, composition and estimation of life cycle cost (LCC) are profoundly studied and presented in detail. Then the state-of-the-art of applications of LCC analysis home and abroad to product design, value engineering(VE), equipment management and so on is also comprehensively summarized. And according to the practical situations in China, LCC analysis is proposed to be not only used in military applications but also especially in civilian applications. Finally, the hot point of LCC research work and approaches in China should be as follows: LCC’s normal establishment, design for cost (DFC) and VE, LCC data collection, etc.

Key words: Design for cost, Life cycle cost, Value engineering