This article offers insight into the different cost types and factors for weighing.
As the name of the article suggests, the total cost of ownership or TCO approach involves defining a calculation process to help businesses compile all costs arising through capital goods and consider them throughout an entire investment use period. All kinds of expenses, rather than just procurement costs, are analyzed and optimized too. This involves finding cost drivers and identifying the possible hidden costs before making the planned investment to make the proper choice. This article also offers insight into the different cost types and factors for weighing. Read on to learn more!
TCO: Its Definition and Differentiation from LLC
The terms TCO, or total cost of ownership, and LLC, life cycle costing, and unfortunately usually mixed up. LLC is primarily used when it comes to capital goods within the manufacturing industry, and it focuses on operating and procurement costs. On the other hand, TCO is a broad term that also considers the costs for expenditure during use, such as breakdowns, routine maintenance, and training. However, multiple models exist for carrying out a TCO.
When calculating according to the overall cost of ownership, it should be noted that this is a best-practice approach. Compared to numerous other parameters from this economics space, there is no accurate associated mandatory regulation or standards.
New TCO Model Enables Quick Usability
There are thus various concepts for TCO calculation. However, a benchmark based on a TCO could only be possible based on a uniform calculation process. Many different models are published within the literature relating to the topics of LCC and TCO. This includes models from associations like the Mechanical Engineering Industry Association (VDMA) and the Association of German Engineers. A new approach for TCO calculation based on qualitative and quantitative model components and empirical data, on which the subsequent chapters of this article are based, will enable a fast usability of the configured model. This approach is very flexible in practice and thus saves time when applied. The model is based on existing models and a comprehensive analysis of companies that already use an LLC or TCO.
CONTACT THE SCALE PEOPLE FOR WEIGHING EQUIPMENT AND CALIBRATION SERVICES!
Since 1956, The Scale People have earned a reputation as the best service provider for calibrating and repairing weighing equipment in the mid-Atlantic area. Our sales team can help you to find the best weighing equipment for your application. We currently have offices in Columbia, MD, and Newport News, VA, but we offer our services nationwide. Over the years, we have built many satisfied clients from various industries, including pharmaceutical, food and beverage, and government manufacturing. We are a fully ISO/IEC 17025:2017 accredited service company offering calibration for balances, scales, dynamometers, force measurements, test weights, pipettes, and more. All our services have a 100% satisfaction guarantee. We’re only a phone call away at +1 (800) 451-9593. Follow us on Facebook, Twitter, and LinkedIn to learn more about our work.