Total Cost of Ownership Models - Examples(TCS-II-05-2)

Element of our Cost Modelling course which introduces how to estimate the "percentage of price" ratios for material, labor, overhead, etc. A must-have when analyzing suppliers and the foundation for building cost models. The technique is illustrated for a product and for a service. To get the Cost Modelling course: select a bundle in our course catalog, then click above on the button "Get all for $xxx". You will get one year unlimited access to the course and all supporting content.

'Cost Modelling' course objectives:

• To obtain, understand and apply a set of cost management tools that enable the transition from leveraging volume to leveraging ideas
• To gain a better knowledge of the cost structure of goods, equipment or services procured
• To identify data sources in building cost models
• To apply cost models in effective negotiations
• To use Price Discipline in long term contract negotiations
• To apply Total Cost of Ownership principles in sourcing decisions

• TCO Product Example Steps 1 and 2
• Measuring the Cost Elements Product Example
• Assigning Costs to a Timeline Product Example
• Delivery Opportunity Cost Example
• Production Opportunity Cost Example Product
• Completing the TCO Model and Analyzing the Results Product Example
• TCO Service Example Steps 1 and 2
• Measuring the Cost Elements Service Example
• Assigning Costs to a Timeline Service Example
• Implementation Time Opportunity Cost Example Service
• Completing the TCO Model and Analyzing the Results Service Example
• Template - TCO model
• Example- TCO- Gas Turbine

• TCO Template.xlsx