Total Cost of Ownership | METTLER TOLEDO

Total Cost of Ownership (TCO)– Free Download


How to illuminate all the costs when purchasing capital equipment

This white paper looks at the costs of making a capital investment in production line equipment. Understanding the full costs in such cases, including expenditure that is sometimes hidden or difficult to access is important in higher value purchases. This is especially the case when it comes to product inspection equipment, as it often doesn't provide an immediately apparent return on investment.

When looking at the sizable initial purchase price, it is often tempting to go with the lowest option. But doing so can be a serious error, as hidden costs can emerge over the course of the equipment's life, making it a potential drain on finances.

Avoiding this potential pitfall is the core of what Total Cost of Ownership (TCO) calculations have been designed to accomplish. They give companies a tool to illuminate all the costs associated with a new purchase throughout its entire lifecycle.

The white paper focuses on the following topics:

  • What is Total Cost of Ownership (TCO)?
  • What are direct costs?
  • What are indirect costs?
  • Making and utilizing a TCO calculation
  • What is the potential for savings?
  • How will good equipment suppliers help?

Download this informative white paper to learn more.

Product Inspection Equipment's Potential for Savings

Purchasing product inspection equipment may not always be a choice – there may be an industry regulation mandating the use of such equipment. Regardless of supplier, however, product inspection equipment (metal detectors, x-ray systems, checkweighers and vision inspection systems) provide significant savings in order to ensure a speedy ROI.

Good Equipment Suppliers Will Help

The TCO model is meant to facilitate an informed financial decision, but it is only as good as the data available. Without an accurate view of the costs – and the potential savings – the TCO will provide an inaccurate picture. Having the right information is vital; TCO should have all the costs for the complete lifetime of a system, from purchasing to decommission. Manufacturers should not be afraid to ask system providers for this information. They serve as a partner in the acquisition process, supplying the necessary information required for an accurate TCO calculation.

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