Transparency for investments made by beverage producers

The crucial factor in assessing a line’s true cost-efficiency for beverage producers is the total cost of ownership (TCO). This costing approach provides systematic coverage of all costs that can be directly or indirectly allocated to a particular investment.
For this purpose not only the purchase costs, but also the capital costs and the depreciation costs are taken into due account.

In addition, TCO calculations also subsume the costs incurred during the line’s operational lifetime:

• energy costs,
• costs for raw materials and supplies,
• maintenance costs, and the
• personnel costs for operating the line.

Thus all costs are listed that are incurred by the beverage producer concerned during the entire operational lifetime of his lime.

Total cost of ownership (TCO): a meaningfully illuminating comparison of different system solutions
Krones utilises this approach in advising its clients on assessing different line and production variants. Thus in some cases higher purchase costs may be offset by economical resource consumption or more affordable procurement of raw materials. Information not immediately apparent to the decision-makers involved from an overview of the capital investment costs. By deploying the tool of TCO calculation, Krones creates reassurance: the reassuring certainty of making a future-driven decision covering al the situational conditions involved.

Variant comparison using Total Cost of Ownership analyses
Frequent questions raised when it comes to purchasing new beverage production lines include the decision on whether to handle PET bottles in what is called a converter solution by outsourcing already-blow-moulded PET bottles, or to opt for an inline blow-moulding concept.
Process-related questions can also be reliably assessed using this concept. Is it more affordable to run a aseptic production process or is the hotfill mode the more cost-efficient variant?
These questions are just a couple of example for the decision-making assistance that the Krones team provides by calculating total cost of ownership for beverage producers.