Reliability based total cost of Ownership models

Abstract

Today customers look beyond the initial procurement cost of the newlineProduct They are ready to buy products that are priced higher It is evident newlinefrom the observations that the products from manufacturers like Motorola newlineNokia Sony Nissan Ford Philips Dell and so on have good and everlasting newlinemarket share though their prices are quite higher than the similar products newlinefrom their competitors The foremost reasons for the readiness of the newlinecustomers users to buy the products with higher initial prices are availability newlineof spares at an affordable cost that lead to product usage at longer periods durability of the product and hence minimum downtime and consistency in newlineproduct quality Therefore the manufacturers need to give due consideration newlinefor the above right at the time of developing the products and services so as to newlinebe in the business for longer period newlineThe total cost of ownership TCO is a tool and philosophy to newlineunderstand the true cost of a particular good or service The strength of TCO newlineis to provide and understand the future costs that may not be noticeable when newlinean item is initially developed TCO models emerge as effective ways to newlinedevelop new products that meet competitive challenges and satisfy customer newlinedemands This thesis considers the TCO for newer product development as newlinethe major realm of research Variety of cost components are deliberated in newlineTCO models newline newline