The real “Total Cost of Ownership” of your test equipment

Cost of ownership is always a hot topic when making a program decision for any new, upgrade or sustainment option. The criteria for developing a Total Cost of Ownership (TCO) model quickly turns into debates with many facets and lots of emotion. When it comes to the cost of acquiring and operating test equipment, the answer is not any easier to determine. However, if looked at from a Product Life Cycle (PLC) cost or a Performance Based Logistic (PBL) view point, a more accurate cost model can be developed. By understanding and using the attributes of direct and indirect costs for acquiring, operating, maintaining, migrating and disposing of these assets, an accurate model of the total cost of ownership can be obtained. This paper will lay out the PLC/PBL costs of test equipment and walk through a TCO model that can be used for making trade off decisions between different program options.