TCO

Total Cost of Ownership Modelling

Feeding good asset decisions.

Course Overview

Placing top-level decision-makers into a position of being able to evaluate asset alternatives and make informed decisions around economic return on asset spend reflects good governance and strategy. This training is about achieving this through understanding Total Cost of Ownership (TCO) and enabling analysis of different asset Whole of Life-Cycle Cost (WLCC) options,

also known as “Optioneering”, thus delivering capability for optimising long-term asset associated business outcomes. It covers how to build predictive WLCC models taking account of financial, and non-financial elements (such as asset associated risk and important social factors).

Duration

3 Days

Location

Auckland, New Zealand

Upcoming Classes

23 - 25 June, 2026

KEY TAKEAWAYS

The ability to develop and apply predictive modeling techniques in evaluating potential future business
outcomes of asset acquisition decisions made in today's world based on possible future scenarios. The
process and techniques can be applied in evaluating new capital investment alternatives as well as
sustaining capital alternatives.

Demonstrable Economic Advantages: The training covers real case studies that quantify the potential
economic advantages offered by developing long-term predictive financial modelling, or "Optioneering
of Life-Cycle Cost Decision Options." These include:

1. Savings of >ZAR50 million per annum (1995 value, in perpetuity) on fleet asset procurement
based on total cost of ownership.

2. Analysis of a multi-billion dollar water supply scheme in the Middle East where Design &
Construct (D&C) was estimated at USD825 million, whilst Operations & Maintenance (O&M)
was estimated at >USD4 billion (2002 value).


3.  A case where an additional spend of AUD3 million resulted in Net Present Cost (NPC) savings
of >AUD500 million, and increased revenue capability of AUD4.3 billion due to improved
production availability (2014 value) on a new open ocean marine facility project.sset
Management - Asset Managers, Asset Operations Managers, Asset Planning Managers,
Asset Service Managers, Asset Specialist, and Asset Engineers.

BENEFITS OF ATTENDING

FOR EMPLOYERS:
Improved basis for evaluating the value proposition of alternative options for achieving business
outcomes, known as "optioneering". This facilitates the opportunity to factor in possible future
business specific factors as well as political, economic, social, technical, legal and environmental
forecasts and thus provides a basis for more informed decision making. It also drives effective asset
investment outcomes through understanding the balance between capital intensity and operational
performance.


FOR EMPLOYEES:
The ability to generate optioneering models demonstrating the balance between capital intensity and
operational performance taking account of possible future business specific dynamics and facilitating
the application of multifarious and potentially diverse assumptions relating to potential political,
economic, social, technical, legal and environmental influences on future business outcomes. This
enables middle to senior managers to motivate their recommendations to top-level decision makers
in a manner reflecting a business, rather than a technical approach, which is significantly more
effective when addressing Boards, and Executive Committees.

TRAINING METHODOLOGY:

Face to face training with a Facilitator, who has over 40-years of experience in large capital intensive,
multi-facetted infrastructure asset based industrial businesses, who also has a demonstrated
proficiency in optimizing asset contribution to business outcomes. He has led production, service
delivery, operations and maintenance activities and has been building decision support predictive
models for over 2-decades. The training will include many case studies as well as day-3 being
dedicated to workshop building the foundations of a predictive model specific to each delegate, who
will lay the foundation to build their own business specific model under the guidance of the Facilitator.

Register Here

Delegate Fee: USD2499

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