Is total cost of ownership (TCO) relevant for facility managers?
Asked a year ago
Hey all, I’m been looking for ways to improve our operational efficiency and reduce costs. I've heard of the concept of total cost of ownership (TCO) in the context of equipment and technology purchases, but I'm not sure if it's relevant for my role in facility management. Can TCO be applied to the management and maintenance of buildings and facilities? Thanks.
Tristin Craft
Tuesday, March 21, 2023
Total Cost of Ownership can help facility managers make informed decisions by enabling them to keep track of assets across business locations.
The data it offers lets managers see if a specific location is spending more than average on repairs, allowing them to make predictive investment decisions.
Furthermore, a TCO model answers several questions, such as:
- What investments should be prioritized?
- Why should I invest in an asset?
- How much should I invest in an asset?
- What are the consequences of investing in assets across a total portfolio?
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