Newly revamped Total Cost of Ownership (TCO): Packaging and Processing Machine Guidelines help consumer packaged goods (CPGs) and OEMs identify, quantify and break down the costs of purchasing and operating machinery. The tool was developed by the OpX Leadership Network convened by PMMI, The Association for Packaging and Processing Technologies.
The document provides manufacturers with a big picture perspective on the complete cost of a machine purchase. With its new streamlined, easy to navigate format, the free tool now features case study examples of how the document is utilized by both OEMs and CPGs, and includes a customizable Excel workbook used to record all salient cost information when purchasing a machine.
“When purchasing equipment, acquisition and operating costs – from design and application through operation and maintenance – must be considered, not just the price,” says Bryan Griffen, director, industry services, PMMI. “Our updated tool makes it easier than ever for companies to make informed business decisions in selecting the best solution using the total cost of the machine.”
The Total Cost of Ownership (TCO): Packaging and Processing Machine Guidelines breaks down the ongoing costs that factor into the true cost of running machinery, from design and application through maintenance and environmental concern to allow CPGs and OEMs to move the discussion beyond the price tag to focus on the Total Cost of Ownership. Purchase price is one element when making a decision for a capital project. Other aspects of the solution related to operating and maintenance costs will impact the total cost, often far more than the original purchase price. Professionals with decades of experience on all sizes of capital projects have shared their ideas to provide other industry teams with a consistent set of metrics and approach for your decision.
Use the playbook and associated checklist to identify and quantify the costs that will impact your business far beyond the day the equipment begins producing for your business.
The OpX Leadership Network was founded in 2011 by PMMI to ensure CPG companies and OEMs are well-connected and well-prepared to solve common operational challenges, make smarter decisions and achieve operational excellence. Users have downloaded the original Total Cost of Ownership document over 5,000 times since its release in May 2015.
The TCO tool, as well as solutions on Request for Proposals, Factory Acceptance Tests and more, are available for free download at www.opxleadershipnetwork.org.