Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) is a comprehensive financial estimate that shows how much the purchase, maintenance and utilisation of a system will cost over its entire service life. TCO covers all equipment-related costs, including installation, maintenance, operation and disposal, for companies in the industrial sector.

Advantages of TCO

  • Informed decisions: Helps make better purchasing decisions by comparing long-term costs.
  • Cost optimisation: Identifies areas to reduce operating costs.
  • Accurate budgeting: Provides a clear picture of future expenditure.
  • Value assessment: Assesses the true value of an investment over time.

In order for industrial companies to effectively manage their assets, it is imperative that they know the total cost of ownership. By taking all costs into account, companies can make strategic decisions, rationalise processes and improve financial performance.

Further Links:

The guide to paperless manufacturing.