Total Cost of Ownership (TCO) is a financial estimate intended to help determine the direct and indirect costs of a product or service. Not unlike an iceberg however, there is often a tendency to focus solely on visible upfront costs and overlook the hidden smaller details.
The cost of fuel is not always about the amount consumed. Measuring the fuel consumption of an industrial diesel engine and the effect on total cost of ownership (TCO) often involves more than monitoring the fuel gauge. When determining fuel consumption as a component of Total Cost of Ownership it is important to also consider indirect operating costs including:
Logistical Cost of Refilling: Low fuel consumption means refilling less often. “If you operate remotely and need a fuel tank to transport fuel to your machine, then lowering the number of trips will have a huge impact on your logistics costs,” says Per Karlsson Application Engineer, Volvo Penta.
Impact on Productivity: In situations where logistical costs are not a significant factor, lower fuel consumption could open up the possibility of using a smaller tank. This in turn could increase the payload of your vehicle. “In many industries, such as mining, every extra kilo of payload can quickly add up and make a significant contribution to a company’s bottom line. Especially if your vehicle is making multiple trips a day,” adds Karlsson.
Time is Money: “The cost of fuel isn’t always about the amount you consume. It can also be about the impact of refilling and what that means for your business,” says Per Karlsson. “Only by taking all these factors into account can you fully understand the true cost of fuel on your TCO
Learn more about TCO for industrial diesel engines and learn about the-hidden-costs-of-fuel. To learn more please navigate to www.volvopenta.com and search News or follow the Volvo Penta website link below.
Information contained within the article and rights of use remain the property of Volvo Penta and the Volvo Group. No matter where in the world your journey takes you, no matter where your operation is – Volvo Penta is never far away.
Transparency. Respect. Trust. Not afraid to push the limits and explore new possibilities. For general and civil construction, for mine site dewatering, flood control and power generation. For gold field line haulers, specialised fire fighting vehicles and railway and logistical equipment. We are the official Volvo Penta Oceania Sales and Service Centre for South Australia. We are your local industrial special application diesel engine provider. We are Don Morton Power & Propulsion.
Volvo Penta Oceania Dealers in South Australia:
Don Morton Power & Propulsion
Authorised Volvo Penta Centre
70 Humphries Terrace, Kilkenny SA 5009
Phone: (08) 8347 0011
Anthony Squire Diesel Services
35 Woodlands Terrace, Edwardstown SA 5039
Phone: (08) 8277 1825
Ashbrook Diesel Pty Ltd
14 Elizabeth St, Port Macdonnell SA 5291
Phone: (08) 8738 2028
Can Do Marine
38 Chatfield Terrace, Wallaroo SA 5556
Phone: (08) 8823 3025
West Coast Diesel Service
32 St Andrews Terrace, Port Lincoln SA 5606
Phone: (08) 8682 1753