Download - Total Cost Ownership Calculator

7/26/2019 Total Cost Ownership Calculator

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What is the Purpose of the TCO Calculator?

The TCO Calculator is designed to help people who are new to the concept of total cost of ownership.

Why Use the TCO Calculator?Using the Calculator will help you to understand the total costs of the item, over its whole life.

Does the TCO calculator include GST?

It may not be particularly useful to those who are experienced and/or ualified in accounting or related disciplines ! it isrecommended that these people continue to use their current methodology, or see" more sophisticated software.

The calculator contains a number of categories and sub!categories of costs associated with the life!cycle of an item. #omthese are obvious, li"e the purchase cost of the item, but some are things that you might not have thought of, such as theof outages. The calculator is designed to prompt you to thin" about costs that you may not have thought of, but you only nto enter data into the fields that apply to the product that you are procuring.

The TCO Calculator will automatically calculate$% an overall Total Cost of Ownership% totals for the various sections, categories and sub!categories, and% percentages of the TCO for each of the categories.

The TCO calculator should be used in conjunction with the Guide to the Total Cost of Ownership.This can be found on the website:

&ome'age ( 'rocurement.govt.n)

*ou can use the calculator to compare the TCO for several options, to ma"e a decision about which is the least expensivethe expected lifetime of the product or service.

*ou can as" suppliers to present the total cost of ownership in the proposals. *ou may use this Calculator as a template intender.

This calculator is exclusive of +#T. If an item was being purchased from overseas, it would be appropriate to include custduties as this are not claimed bac" by the entity via the +#T process +#T is on top-. #eehttp$//www.customs.govt.n)/inprivate/charges/dutiesandcharges/'ages/default.aspx for details.
http://www.business.govt.nz/procurementhttp://www.business.govt.nz/procurement


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Total Cost of Ownership !uic" Calculator

#a$e of product % ser&ice: 'insert na$e(

)*pected lifeti$e of the ite$: +,

)-P)#S)S

Cost cate.ory + Cost ite$s

/ll initial costs on purchase 0oneoff1 'urchase price

ccessories

egal costs eg conveyancing-

0uties / taxes on purchased item excludes +#T-

'ac"aging

0elivery costs

Installation / integration / engineering / calibration costs

Testing / initial inspection costs

1uilding consents

lterations, cabling, telephone lin"s

Initial licence costs

Cost cate.ory 2 Cost ite$s unit cost

3e.ular on.oin. operational costs 0per annu$1 nnual licences 2 34,534.66

Consumables eg in" 2 534.66

Consumables eg lubricants 2 78.66

Consumables eg cleaning products 2 748,478.66

Consumables eg health and safety euipment 2 478.66

Consumables eg paper 2 478.66

#oftware upgrades 2 4,784.66

#taff training 2 787.66


5uel % ener.y costs 0per annu$1 9lectricity 2 5,347.66

+as 2 47,534.66

:ater 2 5,347.66


enter data here


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3e.ular ser&ice and $aintenance 0per annu$1 nnual maintenance 2 3,478.66

'reventative maintenance 2 347.66

Other maintenance 2 743.66

#pare parts 2 78;.66

&ire of replacement euipment during downtime 2 43.66


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#ummary

Total costs p=a= Total costs o&er wholeoflife > of TCO

Cate.ory +: initial purchase costs

42448=,, oneoff so not applicable 4=27>

Cate.ory 2: re.ular on.oin. operational costs

2,2974+=,, 2,2974+,=,, 9@=2,>

Cate.ory 4: fuel% ener.y

9,+8@=,, 9,+8@,=,, 2=96>

Cate.ory 6: re.ular ser&ice and $aintenance

@+2+=,, @+2+,=,, ,=48>

Cate.ory 7: anticipated downti$e

8+,=,, 8+,,=,, ,=29>

Cate.ory 8: additional supplier costs

278=,, 278,=,, ,=++>

Cate.ory 9: oneoff costs

+2,,,=,, oneoff so not applicable ,=,7>

Cate.ory : costs of disposal

46947=,, oneoff so not applicable +=48>

;#CO

Su$$ary of e*penses % inco$e A > of TCO

Total initial costs 42448=,, 4=27>

Total e*penses p=a= 2699222=,, @=8>

Total e*penses o&er wholeoflife 2699222,=,, @8=98>

Total inco$e 4+@,=,, ,=,+>


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TOT/B COST O5 OW#)3S;P 278,+488=,,


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subtotal costs A

2 5,345.66

2


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A 2 3,478.66

A 2 347.66

A 2 743.66

4 2 5,5B6.66

A 2 43.66

subtotal A @+2+=,,


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p=a= subtotal cost A

A 2 4,474.66

A 2 777.66

A 2


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