TCO Champion
EBNER.blog | Franz Wiesinger, EBNER Industrieofenbau, Austria
TCO Champion.
EBNER makes its customers Total Cost of Ownership champions.
To companies that want to remain competitive in hotly contested markets, the nuts and bolts of long-term success are low operating costs, short production cycles, low energy costs and high quality the cost of procuring a facility that will remain in operation for twenty years or more makes up around 15 % of its overall cost. The remaining 85 % of its cost is comprised of continuous expenses for maintenance and repair, as well as the cost of energy. Together, these are the real cost drivers.
This larger fraction is often underestimated or ignored, as it is hidden at the time of purchase – it can be compared to an iceberg, the bulk of which is hidden below the surface of the water. This means that investment decisions are often made before adequate information on longterm running costs is available.
EBNER is quite aware of these long-term costs, for which reason a significant element in our strategy has been to make our customers TCO champions.
There are many features of our facilities that can make you a TCO champion:
- Short annealing times
- Low energy consumption
- High throughput capacity
- High facility availability
- Long service life
- Continuous improvement
- High economy
- World-wide service
EBNER is not shy of being directly compared to its competitors in any of these categories. As a pioneer in the field of industrial heat treatment, we have over 70 years of experience in furnace design and fabrication. Our high-quality manufacturing facilities in Austria, the USA and China guarantee not only the highest possible quality and the longest possible service life, but state-of-the-art technology as well. Those willing to take a look at all the costs when investing in a facility may be surprised to see how quickly they, despite an initially-higher investment, reach the break-even point and enter the circle of TCO champions.
| ASIA | EU | USA | |
|---|---|---|---|
|
Production time (h/t) |
30,4 % |
4,7 % |
30,4 % |
|
Annual throughput (t/year) |
-25,2 % |
-5,3 % |
-23,4 % |
|
Energy consumption |
|||
|
electrical power (kWh/t) |
+30,5 % |
-3,7 % |
0 % |
|
gas (m3/t) |
+8,5 % |
+7,4 % |
+10,3 % |
|
Operating costs (OPEX) |
|||
|
EUR/t |
+28,7 % |
+10,7 % |
+23,7 % |
|
EUR/year (identical throughput) |
+21,2 % |
+9,5 % |
+17,1 % |
|
Gross profit (EUR/t) |
-21,7 % |
-7,8 % |
-17,4 % |
|
Break-even point (max. throughput): |
4,3 Jahre |
2,4 Jahre |
2,0 Jahre |
Comparison is based on a bell annealer facility with 3 workbases, 2 heating bells and 1 cooling bell (HOg 430/530 St-H2 -D).
Comparison with an Asian competitor
Despite the lower procurement costs offered by our competitor, the break-even point is reached at around 4.3 years of service. After 8 years of service, savings have reached over one million Euros.
Comparison with a European competitor
When compared to our European competition, our short processing cycles, high energy efficiency and high throughputs make you an EBNER TCO champion in only 2.4 years.
Comparison with an American competitor
Despite the higher procurement costs of an EBNER facility, the break-even point is reached after only about 2.0 years. After 15 years of service, savings have reached 4.8 million Euros.
What is TCO?
TCO stands for Total Cost of Ownership, a comprehensive measure of the costs of products, goods and services. It takes into account not only the cost of procurement, but also the direct and indirect running costs that are created over the complete service life of the product. This approach to costs provides valuable assistance when examining business-related questions such as whether or not to invest.
