Sustainable Automation for Packaging: Reducing Total Cost of Ownership
Total Cost of Ownership (TCO) is a fundamental tool for business capital planning. It analyzes the purchase price of a capital input -- a computer system, a building, or any production machinery -- as well as the total expenses
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incurred over a machine's lifetime, so you can make the most economical choices, based on the investment's ability to cover its cost and generate the return desired.
TCO allows you to look at the cost for operations and maintenance in addition to original acquisition cost. And it helps you compare the costs of different types of equipment or systems under consideration, and choose the one most likely to be least costly over time.
For food and packaging operations, it is a critical tool for guiding decisions about your automation investments. And in an era when sustainable manufacturing and sustainable packaging plays such an important role in the industry's fundamental strategies, TCO can equip you with the information you need to make machine investments that are both financially and environmentally rewarding.
We find that decisions based on TCO may lead to lifetime cost reductions of as much as 30% in factory automation applications. Most of the cost reductions come from reducing operational costs in two ways: