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Sustainable Design and Management of Industrial Assets through Total Value and Cost of Ownership

Objective

SoThe project will examine the potential of Total Value and Cost of Ownership (TVO, TCO) for supporting the design and through-life management of industrial assets.
Until now, some leading companies that are aware of all the costs throughout the asset life cycle use TCO to support procurement, operations and maintenance decisions. The benefit of using TCO is that a decision maker could be incentivised to go beyond the consideration of capital expenditure, and think of the potential whole-life cost arising through the use of their assets. In this regard, TCO helps achieving a cost-efficient life cycle management of the assets owned by the company. But TCO models are still poorly practiced in industry, in spite of their advantages. Further on, the flavour of the day in the industrial and academic world is to encourage innovative thinking to extract the maximum value from the assets, instead of thinking only about cost. Value can be tangible or intangible, and is determined by the organization and its stakeholders, thus TVO extends cost-based decisions. Although the importance of value maximisation in physical asset management is currently accepted, there are few works clarifying what value means, how to identify and quantify value, how to base decisions on it. The purpose of the project is to study the evolution of TVO and TCO as used in industry and understood by academics, with the aim to develop a framework for understanding, quantifying, and using TVO / TCO for decision-making. Overall, we aim at studying how asset life cycle management is possible thanks to TVO / TCO, providing the asset owner the capability to develop a sustainable factory according to the economic, social and environmental requirements of the local industry.Cross-fertilization of research and industry will be achieved through knowledge sharing between academics and industrial experts involved through interviews and workshops. Publications will provide outputs to promote knowledge sharing.

Call for proposal

H2020-MSCA-RISE-2014
See other projects for this call

Funding Scheme

MSCA-RISE - Marie Skłodowska-Curie Research and Innovation Staff Exchange (RISE)

Coordinator

POLITECNICO DI MILANO
Address
Piazza Leonardo Da Vinci 32
20133 Milano
Italy
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 225 000

Participants (2)

THE CHANCELLOR MASTERS AND SCHOLARS OF THE UNIVERSITY OF CAMBRIDGE
United Kingdom
EU contribution
€ 94 500
Address
Trinity Lane The Old Schools
CB2 1TN Cambridge
Activity type
Higher or Secondary Education Establishments
UNIVERSIDAD DE SEVILLA
Spain
EU contribution
€ 130 500
Address
Calle S. Fernando 4
41004 Sevilla
Activity type
Higher or Secondary Education Establishments

Partners (7)

UNIVERSITY OF PRETORIA
South Africa
Address
Lynnwood Road
0002 Pretoria
Activity type
Higher or Secondary Education Establishments
FOUNDATION FOR INNOVATION AND TECHNOLOGY TRANSFER
India
Address
Hauz Khas New Delhi
110016 New Delhi
Activity type
Higher or Secondary Education Establishments
RUTGERS, THE STATE UNIVERSITY OF NEW JERSEY
United States
Address
Rutgers Plaza 3
08901 New Brunswick
Activity type
Higher or Secondary Education Establishments
PONTIFICIA UNIVERSIDAD CATOLICA DE VALPARAISO
Chile
Address
Avenida Brasil 2950
N/A Valparaiso
Activity type
Higher or Secondary Education Establishments
PONTIFICIA UNIVERSIDAD CATOLICA DEL PERU

Participation ended

Peru
Address
Avenida Universitaria 1801 San Miguel
15088 Lima
Activity type
Higher or Secondary Education Establishments
INDIAN INSTITUTE OF TECHNOLOGY BOMBAY
India
Address
Powai
400076 Mumbai
Activity type
Higher or Secondary Education Establishments
University of Cincinnati
United States
Address
Cincinnati,ohio
45221-0222 Cincinnati
Activity type
Higher or Secondary Education Establishments