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Assessing Total Cost of Ownership: Effective Asset Management Along the Supply Chain

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Asset Intelligence through Integration and Interoperability and Contemporary Vibration Engineering Technologies

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

Abstract

Firm purchasing models are an important tool for effectively managing business costs over the different time horizons and business cycles of the organisation. However, there is a lack of a clear understanding of the optimum method for supporting purchasing decisions for businesses and less knowledge of the costs over the entire supply chain of a product or service. Total cost of ownership (TCO) method helps the purchaser to compare different goods or service providers with regard to total cost rather than choosing a supplier due to their lowest initial price alone. The mining industry is an important sector in which to investigate the TCO as it is a valuable sector to the economy and the long-time horizons and large-scale projects require careful planning and management. This paper investigates models for purchasing and assesses the optimal performance issues accorded to purchasing and firm costs in the mining sector by the various methodologies. The notion and use of TCO as a basis for reviewing supplier selection models will be explored and investigated in detail. This review outlines the impediments of feasible TCO analysis execution and reveals common obstacles that must be attentively considered in the supply chain across mining industries assets.

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Author information

Authors and Affiliations

  1. Western Australia School of Mines: Minerals, Energy and Chemical Engineering, Curtin University, Bentley, 6102, WA, Australia

    Amir Noorbakhsh & Carla Boehl

  2. School of Business and Law, Edith Cowen University, Joondalup, 6027, WA, Australia

    Kerry Brown

Authors
  1. Amir Noorbakhsh
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  2. Carla Boehl
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  3. Kerry Brown
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Corresponding author

Correspondence to Amir Noorbakhsh .

Editor information

Editors and Affiliations

  1. The Asset Institute, Queensland University of Technology, Brisbane, QLD, Australia

    Joseph Mathew

  2. Department of Architecture and Civil Engineering, City University of Hong Kong, Hong Kong SAR, China

    C.W. Lim

  3. School of Chemistry, Physics, Mechanical Engineering, Queensland University of Technology, Brisbane, QLD, Australia

    Lin Ma

  4. Synengco Pty Ltd, Highgate Hill, QLD, Australia

    Don Sands

  5. School of Chemistry, Physics, Mechanical Engineering, Queensland University of Technology, Brisbane, QLD, Australia

    Michael E. Cholette

  6. School of Mechanical and Manufacturing Engineering, UNSW Sydney, Sydney, NSW, Australia

    Pietro Borghesani

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Noorbakhsh, A., Boehl, C., Brown, K. (2019). Assessing Total Cost of Ownership: Effective Asset Management Along the Supply Chain. In: Mathew, J., Lim, C., Ma, L., Sands, D., Cholette, M., Borghesani, P. (eds) Asset Intelligence through Integration and Interoperability and Contemporary Vibration Engineering Technologies. Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-95711-1_43

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  • DOI: https://doi.org/10.1007/978-3-319-95711-1_43

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-95710-4

  • Online ISBN: 978-3-319-95711-1

  • eBook Packages: EngineeringEngineering (R0)

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