Total cost of ownership modelOperations
The client approached Zenith Global, seeking consultation on how best to increase the efficiency of its operations - either by upgrading existing production lines or installing new, replacement production lines.
Zenith Global collected production data for all processes from the past 2 years for analysis and examined the quotations received from two leading equipment suppliers. A total cost of ownership model was developed to enable comparison of the costs incurred by the existing lines and the proposed new production lines.
The model indicated that potential savings of SAR 2 billion (EUR 400 million) over a 5 year period could be made by installing the new production lines.