Even their future evolution (e.g., rise/decrease of cost

Even if it clearly emerges from the
literature that TCO has got positive effect in supporting decision making for
asset management; however, many limitations exist up to day. A crucial point in
order to understand the applicability of a TCO model for supporting physical
asset management is that the evaluation criteria for the costs elements
definition should encompass not only all incurring cost elements along the
asset life cycle but also system performance characteristics, like system availability,
in upfront decisions for achieving the lowest long term cost of ownership 8, 17, 37.

 

Indeed, some main issues should be
considered when approaching the TCO evaluation of a production system as a
support for decision making: i. a large number of variables directly and
indirectly affect the real cost items and are affected by uncertainty in their
future evolution (e.g., rise/decrease of cost of energy, cost of raw material,
cost of labor, budget limitations, etc.)9, 26;

 

ii. the evolution of asset behavior in the
future is difficult to predict (e.g. aging of assets, failures occurrence,
performance decay) and ‘infinitely reliable’ components or systems do not exist
31;

 

iii. complex relationships in the assets
intensive system dynamics, due to the presence of many coupled degrees of
freedom, make it not easy to understand the effects of local causes on the
global scale 38;

 

iv. conventional cost accounting fails to
provide manufacturers with reliable cost information due to the inability of
counting the so-called invisible and, in particular, intangible costs, and thus
there is inaccuracy in calculating total costs 7.

 

It
is evident that additional research is required to develop better TCO models to
quantify the risks, costs, and benefits associated with physical assets
including uncertainties and system state and performance evaluations to generate
informed decisions 33. The objective
of this paper is to present a comprehensive methodology for the evaluation of TCO
of nanomaterial. 

 

Lack of identical information leads to one party
making “informed decisions” therefore information asymmetries occur and cost
where different amounts of information and different objectives lead to
different behavior strategically.