Compare competing machinery tenders by Net Present Value (NPV) of full lifetime costs.
Why does the lowest tender price often become the most expensive asset?
Initial capital purchase cost represents typically only 10% to 20% of an industrial machine's total life-cycle cost. Energy consumption, recurring maintenance overhauls, and unplanned breakdown downtime make up the remaining 80%+. Life Cycle Costing (ISO 15663 / IEC 60300-3-3) reveals the true lowest-cost option.
Total Cost of Ownership (TCO) models evaluate competing engineering equipment alternatives by discounting all operational, energy, maintenance, and disposal cash flows into a Net Present Value (NPV) and Equivalent Annual Cost (EAC).
Justify asset replacement vs continued repair with defensible economic life metrics.
Cost & Economic DecisionsProve the financial return of reliability improvements, CBM tools, or storeroom re-engineering.
Cost & Economic DecisionsCalculate accurate cost per minute of unplanned downtime to support reliability business cases.