A TCO Model for Supporting the Configuration of Industrial Plants

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In the current industrial context, where processes are extremely flexible to meet the changes of the market demand, the traditional strategies for managing the design and investment of industrial assets are too restrictive. Indeed, such strategies just consider the procurement price of an asset rather than its lifecycle cost. In this framework, the paper proposes a Total Cost of Ownership (TCO) model that can be adopted in B2B context for establishing the best asset configuration and procurement strategy by considering its CAPEX and OPEX. Such a TCO model has been implemented into an Enterprise Application Software for supporting the TCO evaluation. The presented model and software tool have been applied within an Italian food company for supporting the assets investment management.




Mandolini, M., Marilungo, E., & Germani, M. (2017). A TCO Model for Supporting the Configuration of Industrial Plants. Procedia Manufacturing, 11, 1940–1949. https://doi.org/10.1016/j.promfg.2017.07.339

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