Prime Technologies Ltd.Prime Technologies Ltd.

Volvo Penta: Why Total Cost of Ownership Is so Important - Part 2

The total cost of ownership (TCO) of an industrial diesel engine is vital to your overall profitability so it’s too important to leave the gut-feeling or vague estimates. In some applications, it can be complicated process, but it is worth getting right, advise the Volvo Penta experts.

If you can quantify how much you’re investing upfront, and how much an engine will cost over its lifecycle, then you’re in a much better place to evaluate if an engine is right for you or not. Often the purchase price might only be 4-5% of its TCO, and the other 95% is fuel consumption. With that in mind it does not make sense to buy an engine that is 20% cheaper if it consumes 7% more in fuel. Nor does it make sense to buy a cheap engine if its poor reliability and durability costs you more in repairs and lost uptime, say the Volvo Penta specialists.

For customers working with gen-sets, Volvo Penta can offer a TCO calculation tool, which enables users to enter data for their own unique operating conditions. Gen-sets are simpler to calculate because the loads are consistent. For engines with variable loads and cycles, it becomes more complex. However, Volvo Penta engineers are be able to assist with information on how the engines should perform in certain circumstances and conditions.

According to Volvo Penta experts high-quality engine oil will inevitable cost more by litre but it will also last longer and will extend the intervals needed between filter changes. In some cases, depending on the operating conditions, high quality oil can last up to 1000 hours before needing to be changed. A lower quality oil on the other hand, might need to be changed every 200 hours under the same conditions.

Spare parts are another area where short-term savings can easily turn into long-term costs. Genuine parts from Volvo Penta have been validated and tested, so you can be confident of their reliability, durability and performance. They are also fully covered by warranties so if a part does fail and causes damage to the engine, not only will the OEM reimburse the cost of the part but also the repairs for the engine.


Go to Part 1 »



Prime Technologies Ltd.