W4_WAS_Choosing Refrigerator (Total Life Cycle)

Step 1- Problem or Opportunity Statement
Do we need a refrigarator? Yes absolutely. Nowadays every family, every house must have refrigerator to keep food fresh. Manufactures offer various product and let customer choose by their preference. Since me and my wife is moving in to our new home, we are confused in buying a refrigerator. We should consider about price, feature, power consumption and also the model.

First we will discuss from total life cycle aspect.

Step 2 – “FEASIBLE alternatives”

I saw in the market some electronic brand in range Rp 2.000.000 – Rp 3.000.000. I will compare brands that have good reputation such as LG, Toshiba, and Panasonic: LG GN-V212SLT, Toshiba GR-M345E, Panasonic NR-B221MG.

Step 3- Develop the outcomes for each alternative (minimum 2)

The comparison of 3 refrigerator models are shown below:

Step 4- Selection of the acceptable criteria.

Acceptable criteria is minumum/lower value of total life cycle cost, total life cycle cost divide into Investment period and operation period.

Step 5- Analysis/ Comparison of the Alternatives against the Criteria

From data above, we know toshiba is the lowest value of total life cycle cost in ten years usage. The second lowest value is Panasonic, then LG. However, Panasonic and LG is slightly different in total life cycle cost, and quite expensive compared to Toshiba’s.

Step 6- Selection of the Best/ Preferred Alternative Compared against the Criteria

Choosing Toshiba in term of the lowest value of total life cycle cost may be the best choice. It’s because Toshiba’s power consumption is only 40 watt (the smallest watt) and also with the price is only Rp. 2.199.000 (the cheapest). Those factors will affect to total calculation life cycle cost.

Step 7- Performance Monitoring and Post Evaluation of Result/ Follow up Assessment

However, choosing Panasonic brand, has advantage in higer capacity and also good in enviromental aspect because Panasonic don’t use CFC anymore. In other word, if I don’t have limited budget and caring for enviroment I would buy Panasonic.


Sullivan, W. G., Wicks, E. M., & Koelling, C. P. (2012). Chapter 2 Cost Concept and Design Economics. In Engineering Economy (15th ed., pp. 22-66). Upper Saddle River, N.J: Prentice Hall.

Westney, Ricahrd E, (1997). The Engineer Cost Handbook. 1st ed. New York: Marcel Dekker, Inc. .

PT PLN (Persero) (2013). Tarif Tenaga Listrik. [ONLINE] Available at:http://www.pln.co.id. [Last Accessed 17 September 2013].

LG (2010). NEW LG FRIDGE KEEPS YOUR FOOD FRESHER AND YOUR FAMILY HEALTHIER. [ONLINE] Available at: http://www.lg.com/ph/press-release/new-lg-fridge-keeps-your-food-fresher-and-your-family-healthier. [Last Accessed 18 September 2013].

Glodok Shop (2013). Lemari Es 2 PIntu LG : GN-V212SLT. [ONLINE] Available at: http://www.glodokshop.com/detail_barang.php?barang=&kat=MTQ3OQ==&type=barang+baru. [Last Accessed 17 September 2013].

Glodok Shop (2013). Lemari Es 2 Pintu Toshiba : GR-M245E. [ONLINE] Available at: http://www.glodokshop.com/detail_barang.php?barang=&kat=MTk1Nw==&type=barang+baru. [Last Accessed 17 September 2013].

Glodok Shop (2013). Lemari Es 2 PIntu Panasonic : NR-B221MG. [ONLINE] Available at: http://www.glodokshop.com/detail_barang.php?barang=&kat=NzU4&type=barang+baru. [Last Accessed 17 September 2013].


Filed under Week 04, Wirawan ASP

2 responses to “W4_WAS_Choosing Refrigerator (Total Life Cycle)

  1. WOW!!! Awesome case study Pak Wira and you did an outstanding job with your step by step analysis!!! BUT, your citations were weak. You should have cited a specific page number in the CE Handbook and there was no URL to validate the data you got from PLN.

    Next posting, be sure to pay as much attention to your citations as you did to the rest of the blog posting.

    Dr. PDG, Jakarta

  2. Dr. Paul,
    Ya ampyuuunn my mistake Paul, i did not copy the citation properly.
    but, could i claim this blog posting as a problem solving Engineering Economy?

    Thank you

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s