Total Cost of Ownership -Revealing the true cost of owning and operating equipment
Total Cost of OwnershipManagement of enterprisesActivity Based CostingManagementFöretagsledningBusiness and Economics
Abstract Title: Total Cost of Ownership ? Revealing the true cost of owning and operating equipment. Authors: Anna Bladh Anna Ström Tutors: Michaela Boye, Parts and Service, PTD, Alfa Laval Göran Berg, Parts and Service, PTD, Alfa LavalCharlotta Johnsson, Department of Automatic Control, LTH, Lund UniversityBertil I. Nilsson, Department of Industrial Management and Logistics, LTH, Lund UniversityCarl-Henric Nilsson, Department of Business Administration, Lund University Core issue: ?Which costs should be included in a general Total Cost of Ownership model regarding centrifuges, and what input variables are needed in order to calculate those costs in a user-friendly way and with a maintained level of accuracy?? Purpose: The theoretical purpose of the thesis is to identify the cost items that have the greatest impact on a TCO calculation for a centrifuge. The practical purpose is to develop a generic model and tool for calculation of TCO where cost elements with high impact on TCO are prioritised. The objective is to reduce the number of input variables and thereby increase the usability of the model. Methodology: Theory studies of life cycle concepts, case studies of the centrifuge in the brewery and vegetable oil application and interviews with specialists, are some of the different activities that build the base for this thesis. In order to contribute to the field of the research many different perspectives were used and both qualitative and quantitative data have been collected. Conclusion: In the Total Cost of Ownership study it was found that eight cost elements constituted 90 percent of TCO. These elements all made an impact of more than five percent each. Some cost elements could be excluded since they contributed with less than one percent each. These findings enabled the development of a tool for calculating TCO with a decreased number of cost elements to consider. Thereby a less complex TCO analysis is enabled. Keywords: Total Cost of Ownership, TCO, Life Cycle Costing, Life Cycle Profit Activity Based Costing, centrifuge