Understanding total cost of ownership (TCO) of an industrial diesel engine will help you make better investments and purchase more reliable engines, but there are multiple factors that need to be taken into consideration. To help you better manage your TCO, Volvo Penta has created a series of articles on the different ways you can get more out of your engine.
“When calculating TCO there are some obvious costs such as fuel consumption, servicing and maintenance,” says Per Karlsson, Application Engineer at Volvo Penta. “But there are also less obvious factors that can be overlooked, such as resale value, accessibility, reliability, durability, and availability of spare parts. For a complete TCO, you need to factor in all costs – direct and indirect – from the initial purchase until it is scrapped or resold.”
When calculating the total cost of ownership, there is also a tendency to focus on the direct visible costs and overlook some of the indirect costs that can be found in the smaller details. Generally speaking, total cost of ownership includes:
Per Karlsson is a Sales and Application Engineer at Volvo Penta, who specializes in technical issues with OEMs and end customers. He has been at Volvo Penta for ten years, where he has worked with both the marine and industrial segments. Prior to joining Volvo Penta, Per has also worked with maintenance and aftermarket diagnostics in a wide variety of industries including shipping, construction, forestry and agriculture industries.