Calculating the Cost of Ownership
In the February 2022 issue of Hydrocarbon Engineering, Alejandro Plazas, ValvTechnologies, Latin America explains why considering the total cost of ownership of valves will ultimately pay dividends.
All industries calculate the total cost of ownership, particularly when they plan new projects or evaluate unit maintenance costs. Unit by unit, they evaluate equipment, seeking the lowest lifetime cost. The challenge is to realistically and reliably apply the concept to different processes, industries and equipment.
Thinking of a valve as an investment rather than a cost changes perspectives. This article discusses how to calculate the total cost of valve ownership, specifically when it comes to isolation valves. The process entails considering the cost of equipment acquisition, maintenance, repair and replacement, all during a specified time.