It can be tempting to take a short-term view. We do it all the time from impulse purchases at the checkout counter to chasing the latest meme stock. Not every decision should be calculated. In fact, it can be advantageous to take a short-term view from time to time. But when it comes to a major decision such as purchasing a home or changing jobs, wouldn’t you want to take extra time to ensure it aligns with your long-term goals? The same is true for conveyor systems. That’s where Total Cost of Ownership come in.
Total Cost of Ownership is the long-term view of owning equipment. It covers the entire lifecycle from initial investment to operating and maintenance costs spread over the usable life of the system to determine its cost on an annual or hourly basis. Put another way: TCO = IC (Initial Cost) + OC (Operational Costs) + MC (Maintenance Costs) / total units of time. By considering long-term factors, such as time horizon and operating costs, you can better understand the ROI of various components to determine the best solution.
Efficiency
Traditional AC systems have a lower upfront cost compared to equivalent DC systems. DC conveyors can cost an additional 20-25% per foot of conveyor – even though technology has existed for decades. However, there are advantages to the small zones that make up a DC conveyor system. These zones are equipped with intelligent “sleep” mode functionality, which reduces power consumption during idle periods. This run-on-demand approach not only lowers energy bills but also extends component life, minimizing maintenance and downtime. Conversely, AC systems often run continuously. This can increase the operational cost via the kilowatt hours of electricity needed to complete the same work. The savings of switching to DC power can really add up. We share a practical example on our 24 VDC page.
Other factors that impact operational costs are the motor, gearbox, and power transmission components; collectively known as power train. Motors are constantly evolving and come in a range of efficiencies. Depending on the quantity of motors involved, choosing a higher efficient option could add to serious dollars in a system. A gearbox is another crucial area of gained or lost efficiency. Not all gears are equal when it comes to efficiency. Additional gear stages can compound the inefficiency of each power transmission device and should be considered when planning a large system. Finally, the power transmission components (belts, chains, etc.) can also impact both the efficiency of the transmission and the cost of maintenance.
Maintenance
When it comes to operations, maintenance is often associated with down time. Preventative maintenance, or PMs, are often scheduled around holidays to reduce the impact to the production line. But unexpected failures can occur even with a robust maintenance plan. In times like this, every minute that it takes to get back online can have real impacts on revenue generation. There are three main factors that need to be considered for the MRO parts used in maintenance: price of component, ease-of-replacement, and standardization. Each of these factors contributes to the TCO.
O-Rings are cheap and easy to install but are more susceptible to stretching or breaking than v-belt or chain. To address ease-of-replacement, NorthAmCon uses rollers that can be removed quickly without specialized tools. This allows the user to easily change the parts most likely to fail. To aid in standardization, many of our power transmission options are mounted below the top-of-roller (TOR). This allows us to use common drive motors to power multiple BF options which help the end user to reduce inventory levels and carrying costs for replacement parts.
Additionally, standardization of parts can help with lead-time and availability of replacement parts. By taking time to consider these factors upfront, you can reduce maintenance costs over the life of a system. Effective maintenance is also key to the longevity of the equipment.
Longevity
The easiest way to increase your TCO is to increase the denominator of the equation: the useable life. The longer components are operable, the more hours you have to remunerate the initial cost. This applies to both the construction of the device itself, and the quality of the MRO parts. This is component reliability. NorthAmCon’s standard line of conveyors is derived from decades of experience to create a durable product. We also offer OEM replacement parts to ensure that your customers receive the form, fit, and function needed for optimal performance.
Another aspect of longevity is the manufacturing support. Manuals and supporting documentation are available upon request to describe how to correctly operate NorthAmCon componentry and to provide general preventative maintenance guidelines.
Versatility
Business demands change over time. Flexibility is crucial in a good conveyor system. That is why our OEM and Integrators consistently challenge us to develop modular solutions that can be recalibrated or repurposed to meet the demands of manufacturing and logistics. Here are a few factors that may change with demand:
- Product Footprint
- Product Dimensions
- Product Weight
- Throughput
- Speed Requirements
- Positioning Requirements
- Divert Angle
- Reverse Capable
- Controls and Integration
- Production Layout
There are unique challenges with each of these changes and some solutions are better suited than others for each of the categories listed. It is best practice to anticipate variables that may change in the future as much as possible on the front end to reduce the cost of modification down the road. For example, you could use ModLinx and Nor+ Flex to address seasonal demand peaks. Or perhaps you anticipate that the load per zone could increase by 30% in the next five years because of increasing throughput. No one has a crystal ball, but good questions and candid conversations upfront can lead to better partnerships and solutions that stand the test of time.
If you have a conveyance project, you don’t have to do it alone. We would love to hear about your application obstacles so you can confidently say “challenge accepted!”. How can we help?
Contact sales@northamcon.com or +1 (989) 358-6119 to get started.
