Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement (2017) / Chapter Skim
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Pages 14-19
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From page 14... ...
14 Guidebook for Considering Life-Cycle Costs in airport asset procurement personnel were asked to rate the success of implementing TCO as part of their procurement process if they learned that considering and implementing life-cycle costs in airport asset procurement would improve asset management, increase system reliability, reduce downtime, extend asset life, and reduce costs. The majority of the airports gave a score of 7 or higher (on a scale of 1 to 10, where 1 is not very successful and 10 is very successful)
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procurement Best practices and tCO Implementation at airports 15 however, utilities have worked to integrate these activities across the enterprise and align them with the business strategy. This integration and alignment has increased the efficiency and effectiveness of procurement.
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16 Guidebook for Considering Life-Cycle Costs in airport asset procurement • Procurement professionals should involve vendors in TCO implementation. • Procurement and supply management professionals are obligated toward making sure that high-value / high-risk decisions are not based on price alone.
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procurement Best practices and tCO Implementation at airports 17 from vendors. Additionally, capital and operational budgets would be better managed and allocated strategically toward growth and better services.
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18 Guidebook for Considering Life-Cycle Costs in airport asset procurement A study conducted by Swift and Brown (2003) showed that, through implementing TCO for a capital project at the conceptual and planning phases, there is a higher chance of creating savings over the project's life cycle.
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From page 19... ...
procurement Best practices and tCO Implementation at airports 19 Implementing Total Cost of Ownership To conclude, TCO presents many benefits to the different business units at the airport in terms of managing and reporting the condition of existing and future assets. Additionally, it will assist the airport leadership in their decision making on capital and operational investments.
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