Tracking the Total Cost of Ownership (TCO)

TCO is usually calculated at purchasing time and when comparing offers from potential suppliers, and sometimes a supplier will give their own version of TCO.

Yet, the useful side of calculating TCO is after acquisition and during lifecycle, since the operation and maintenance of the system is typically the biggest component of TCO. Starting with an expected TCO, during lifecycle the actual TCO changes. Operation and maintenance costs add up. An unexpected failure in a system and repair will make the TCO Index go up, while efficient use of a system, with no problems, will improve the expected TCO Index.  Also, if the lifecycle of a system is extended, the TCO Index will get better (decrease). 
Monitoring and calculating TCO over the lifecycle of a system requires proper financial accounting practices and cost allocations and this data is typically readily available. Generating TCO reports for each family of systems on a monthly basis provide excellent KPIs . Management can appreciate such information and it develops a good history for making educated decisions during the next purchase and capital expenditure for a system .
Developing TCO models such as the one shown in the above figure, as simple as it seems, it will require commitment towards project execution excellence, since the TCO modeling approach behind it can get complex. Yet, the benefits can be substantial, since proper management of TCO KPIs can lead to very attractive savings.

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Asset documentation and CAD - based drawings need not be a pain anymore.

Documentation and creation of drawings is simply ... a big pain.

To build and maintain control, communication and various systems connected in a facility, documentation and related information must be generated, maintained and be readily available during the lifecycle of the related assets.

The classic approach is that such information is created and stored in CAD drawings and documents. Even "smart CAD drawings" though may now be as smart versus new approaches that can result into savings of millions of dollars, especially in the case of large capital projects. 

In addition, as information is repeated on several drawings and documents in order to relate various devices to each other, consistency is even more challenging, and with the classic CAD - based approach, the preparation of documentation is slow and inconsistencies appear between documents.

One example - scenario that is that if engineering represents as much as 20% of a large capital project with about 50% of that related to drawings and documentation, then we there is so much room for cost savings. Take a capital project of say 10 million USD, with these practices capital investment and asset lifecycle management costs can be huge as systems grow in size and complexity over time.

A data model - based design can eliminate the pains that a CAD based approach creates, since this approach can deliver.

1. cost savings between 50 and 90% of classic approach over the entire cost of ownership timeline

2. zero documentation errors

3. instant access to all relevant information

4. an auditable history for the complete model

The data model - based approach is applicable to all industries and sector cover documentation of electrical and wiring systems, interconnected assets in telecommunications and networks, data centers, etc.

Comments and questions are welcome.