The total cost of ownership of an asset is often far greater than the initial capital outlay cost and can vary significantly between the different alternative solutions to an operational need. Consideration of the costs over the whole life of an asset provides a sound basis for decision-making. With this information, it is possible to:-
Assess future resource requirements
Uncover potential costs of potential acquisitions
Decide between sources of supply
Account for resources used now or in the past
Improve system design
Optimise operational and maintenance support, through more detailed understanding of input requirements over the expected life cycle
Assess when assets reach the end of their economic life and if renewal is required