Calculating The Total Cost Of Ownership Of Production Line Equipment

By Viggo Nielsen, general manager, Mettler Toledo Product Inspection

Investments are the building blocks of a company's future. Planning and implementing them requires strategy and system and decision-makers who know their goals and carry out the implementation according to plan are more successful than those who rely exclusively on their impulses.Meaningful information forms the basis of a good investment decision and it helps to protect the future prosperity of your company.

On this basis, a process of assessing the total cost of ownership (TCO), was developed over 20 years ago in the United States, and has since been used by many companies. Considering TCO helps to understand better the costs over and above the purchase price and also – when suppliers have differing offers – to compare them and ultimately to substantiate the investment decision. What is critical here is that the method is oriented in each case to the circumstances of the industry and the company. This also applies to the field of automatic checkweighers.

This white paper answers the following questions:
• Have you clarified the foundations of your investment decisions?
• Are you familiar with the advantages of a TCO assessment?
• Do you know what costs are critical for dynamic checkweighers?
• Do you know what savings accrue as a result of using dynamic checkweighers?
• Have you ever calculated the "return on investment" (ROI) time of an investment?
• Does your supplier support you?