At Tyrone international we design, engineer and manufacture our equipment to reduce total cost of ownership (TCO).
Total Cost of Ownership (TCO) is the sum of all costs associated with owning and operating a piece of equipment over its lifetime. For aggregates processors, TCO is a critical factor in determining the profitability of their operations.
The primary reason TCO is so important is that the equipment used in their operations is subject to extremely harsh conditions. Aggregate processing equipment is often exposed to abrasive materials, extreme temperatures, and high levels of moisture. This means that maintenance and repairs are frequent and can be costly, particularly when the equipment is out of commission and not generating revenue.
In addition to maintenance and repair costs, fuel consumption is another significant factor that contributes to TCO for aggregates processors. The size and power of the equipment used in aggregate processing can result in high fuel consumption, which adds to the overall cost of operation.
By taking a TCO approach to equipment purchasing decisions, aggregates processors can make more informed choices. This means not only considering the upfront cost of the equipment but also the ongoing costs associated with owning and operating it. Choosing equipment with lower maintenance and repair costs, higher fuel efficiency, and longer lifetimes can significantly reduce TCO and ultimately improve profitability.
UNDERSTANDING REAL COSTS
Costs come in two forms, capital expenses and operating expenses, and the two are often on a see-saw. Equipment with a lower up-front cost will result in significantly higher operating costs, wiping out any savings.
By engineering our plant to the highest standards, Tyrone International has ensured that there are no surprise costs.
Examples of hidden costs include scheduled and unscheduled maintenance, inferior wear parts such as screen decks, logwasher blades, chute linings, pipe linings and more, as well as running costs such as total energy requirement. Any of these can cause a cost spiral with operating expenses soon outstripping the initial capital cost of the purchase. In addition, the expected lifespan of equipment is also an important cost factor.
Tyrone International’s high-spec plant equipment has been designed to be cost effective not only by providing a higher throughput, but also by taking design and engineering decisions that save our customers money over time. For example, our design decisions include durability and rapid accessibility giving users the ability to reduce downtime, while our focus on energy use reduces the running costs.
Today, rising energy costs running costs are now as important a consideration as up-front costs. Energy inefficient plant machinery could already result in the wiping-out of apparent savings of multiple hundreds of thousands, and with energy costs rising due to inflation and geopolitical events this will only become more and more serious.
“It’s important to look at the whole life cost of plant, and buyers should explore potential operational costs before making a purchase,”
said Fintan McKeever, director of Tyrone International.
Overall, TCO is the primary factor for aggregates processors because it directly impacts their bottom line. By considering TCO when making equipment purchasing decisions, aggregates processors can optimize their operations and maximise profitability.
Improve your margins WITH US
To find out how Tyrone International’s game-changing approach to aggregate washing and water treatment plants can transform your operations by increasing productivity and lowering total cost of ownership, get in touch.
