Modern Asset Management helps you track all costs related to your assets. This is much more than just the purchase price of the asset. Asset Management will help you calculate TCO, or Total Cost of Ownership.
TCO looks at the purchase price and then factors in the price of running the equipment, both in terms of energy and maintenance. Good Asset Management software can help you calculate the TCO of any asset. To calculate TCO ask yourself:
- What will the price tag of the asset be after it is paid for?
- If you are buying it outright, what is the price?
- How will that asset depreciate over time?
- What is the expected asset lifetime?
- How long does the manufacturer predict the asset will run efficiently?
- At what point will the maintenance costs outweigh the benefits of the asset (at what point should it be replaced)?
- What types of maintenance will it take to make the asset run that long?
- Are there types of maintenance that will extend the asset life?
- How much will it cost to maintain the asset?
- How much will the spare parts cost (i.e. oil, o-rings, washers, compressors, coils, spark plugs, tires, etc.)?
- What will it cost to keep the right levels of those parts on hand?
- How much will it cost to pay the people who run the asset?
- How much will it cost to pay the mechanics who maintain the asset without equipment downtime?
- How much will it cost to pay the technicians who service and repair the asset?
Each of these and other factors should be taken into account to help you get a clear TCO. Then, once you have calculated your TCO and bought an asset, it is crucial to use an Asset maintenance solution, like ManagerPlus to record and track the way your asset performs. ManagerPlus includes cloud asset management equipped with Business Intelligence so you can monitor maintenance costs, inventory expenditure, and operating costs.
ManagerPlus is the Enterprise Asset Management software that can help you monitor the TCO of your assets. Give us a call today and let us show you haw ManagerPlus can make a difference in your business.