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Client Success Story
TCO Models & Sensitivity Analysis for Wearing and Sealing Compounds
SITUATION:
- A major mining company needed help to select the lowest cost supplier for compounds used to line pipes
- Three potential suppliers existed with varying degrees of cost/quality
- The objective was to determine which supplier/product represented the lowest Total Cost of Ownership
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HOW WE HELPED:
- Conducted in-depth primary and secondary research on product usage
- Developed detailed TCO models for various options
- Conducted sensitivity analyses
BENEFITS:
- The analysis identified the lowest cost product which represented an 80% reduction in TCO compared to the currently utilized product
- Transferred critical process knowledge to the team to enable them to undertake similar activities on their own in the future
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