Operations & Supply Chain

Total Cost of Ownership Analysis

The lowest purchase price is often not the lowest cost. This course teaches total cost of ownership analysis: identifying acquisition, operating, maintenance, risk and end-of-life costs, building TCO models, comparing options, using TCO in tenders and negotiations, and communicating TCO results to stakeholders.

5 days Classroom or live online English

Smart Horizon Certified - Global Leadership Consultants

Take the course details with you.

Download the full standard outline: why attend, methodology, objectives, audience, competencies, the daily outline and current plans.

Download course PDF

Why attend

From knowledge to real-world impact.

Decisions based on price alone can be expensive over the life of an asset or contract. You will learn to make decisions on total cost.

Workplace challenges

Professional Problems This Course Is Designed to Solve

The programme explores practical approaches to the following challenges. Results depend on how the learning is applied in your organisation.

Difficulty translating subject knowledge into practical workplace decisions.
Inconsistent approaches to the activities covered in the course outline.
Lack of a structured plan for applying and reviewing new skills.

Course methodology

How you will learn.

TCO modelling exercises, case studies of equipment and service purchases, tender evaluation practice.

Course objectives

What you'll take away.

By the end of this course, participants will be able to:

Explain total cost of ownership concepts
Identify cost elements across the life cycle
Build TCO models in spreadsheets
Compare supplier and product options
Use TCO in tender evaluation and negotiation
Communicate TCO results

Target audience

Who should attend.

This course is suitable for:

Procurement and category managers
Engineers and asset managers
Finance analysts
Project managers
Fleet and facilities managers

Target competencies

Capabilities you will build.

Participants will develop competencies in:

Cost modelling
Life cycle analysis
Option comparison
Tender evaluation
Communication

Course outline

Your learning journey.

A focused, practical outline with time to explore, apply and reflect.

Day 1TCO Concepts

09:00–10:08Price versus cost
10:08–11:00Life cycle costs
11:00–11:30Coffee break
11:30–11:45Life cycle costs (continued)
11:45–12:53Applications
12:53–14:00Exercise

Day 2Cost Elements

09:00–10:08Acquisition costs
10:08–11:00Operating and maintenance costs
11:00–11:30Coffee break
11:30–11:45Operating and maintenance costs (continued)
11:45–12:53Risk and disposal
12:53–14:00Workshop

Day 3Building Models

09:00–10:08Data gathering
10:08–11:00Spreadsheet models
11:00–11:30Coffee break
11:30–11:45Spreadsheet models (continued)
11:45–12:53Discounting
12:53–14:00Hands-on

Day 4Using TCO

09:00–10:08Tender evaluation
10:08–11:00Negotiation
11:00–11:30Coffee break
11:30–11:45Negotiation (continued)
11:45–12:53Supplier collaboration
12:53–14:00Case study

Day 5Communicating

09:00–10:08Presenting results
10:08–11:00Sensitivity
11:00–11:30Coffee break
11:30–11:45Sensitivity (continued)
11:45–12:53Embedding TCO
12:53–14:00Action plan

The timings provided are estimates and may vary depending on the number of participants and the discussions taking place during the sessions. They are indicative only and do not constitute a binding commitment.

Dates & venues

Find a session that works for you.

Confirmed dates accept registration requests. Tentative dates are enquiry only.

Good to know

A few things to know.

How is the course delivered?

Our classroom programmes combine facilitated discussion, case studies, exercises and reflection. The precise format will be confirmed before enrolment.

Can you deliver this programme for our team?

Yes, you can enquire about a tailored programme. Share your goals, group size and preferred dates with our learning team.

Will I receive a certificate?

Participants who complete the programme receive a Smart Horizon certificate of attendance. Smart Horizon programmes are not externally accredited and do not award a professional qualification, licence or designation. Where a course title or outline refers to a professional certification (for example, AACE International's Certified Cost Professional), the programme supports learning and preparation only; the credential itself is awarded solely by the relevant professional body under its own application and examination requirements.

What should I confirm before booking travel?

Please confirm the session, exact venue, accessibility arrangements, fees and any visa requirements with the team before arranging travel. Tentative dates are not confirmed sessions.

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