The 5 Key Components of Total Cost of Ownership (TCO) – Part 2
Last week we talked about the 5 Key Components of Total Cost of Ownership including acquisition, operation and maintenance. This week we wrap up the five components of TCO with cost of consumables and extending the life of equipment.
- Cost of Consumables – One cost that sometimes gets overlooked is the supply costs for the equipment. These costs consist of disposable supplies needed to operate the equipment. Traditionally, consumables are not covered by a warranty or equipment maintenance program. And, some of these consumables require skilled technicians for replacement or maintenance which means additional costs for the organization and can increase the cost of the TCO for the piece of equipment. The good news is that while organizations are still responsible for the cost of consumables, a partner like Remi can reduce the overall equipment maintenance costs by 10-25% and consumables are just a small portion of that overall expense.
- Extend the life of Equipment – Eventually the OEM will notify owners about end-of-life or end-of-service-life of a specific piece of equipment. It’s at that time organizations have the option to purchase new equipment or work with Remi to extend the life of the equipment. This means securing parts and trained technicians though an Independent Service Organization (ISO). If equipment can be extended for a few years, this can have a positive impact on TCO and can postpone a large capital purchase.
In conclusion, healthcare organizations can save money, increase the performance of their equipment and improve productivity by understanding Total Cost of Ownership. Understanding costs associated with acquisition, operation, maintenance, consumables, and extending the life of equipment will allow organizations to optimize the total cost of ownership, while spending the least amount of money to manage it. Having an Equipment Maintenance Management Program (EMMP), like Remi, in place can help achieve the best possible TCO for your equipment while allowing healthcare organizations to deliver the best quality care to their patients.
Do you know what your Total Cost of Ownership is for your equipment? Comment below on how you determine TCO.