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TCO at Bosch Rexroth

There are many instruments and methods that can be applied to calculate TCO. Important in the development and use of TCO management is that the departments and suppliers involved be present at the negotiating table. Only through cooperative efforts by all the players can expenditures and benefi ts be optimized and, ultimately, overall costs reduced.


TCO is used as the basis for investment decisions at Bosch Rexroth. Machinery suppliers are required to cite key TCO values in their proposals, which then serve as the basis for a decision. The corporation’s own pledge to reduce its factories’ CO2 emissions twenty percent by 2020 means that one TCO lever, “energy costs”, assumes special signifycance. Here, adhering to the Rexroth 4EE (Rexroth for Energy Efficiency) concept – its focal points being efficient components, energy recovery, energy on demand, and energy system design – helps to identify and utilize cost-savings potentials.

Conversely, TCO is relevant for Bosch Rexroth as a supplier of plant automation products, too. Vital to lowering TCO are energy-efficient systems with great reliability. In products like modern CNC control – e.g. IndraMotion MTX – TCO requirements are consistently satisfi ed with the integral MTX ega energy analysis tool. It is augmented with the MTX rcm machine status monitoring unit.

In addition, machine tools incorporating Sytronix variable-speed pump drives can shave energy use by thirty to seventy percent, compared with conventional drives and depending on the specifics of the application. Given the appropriate environment, a typical machine can achieve a 36 percent reduction in energy consumption and, in turn, a nine percent drop in TCO.

In order to select a sensible, corporation-wide TCO model in line with the company’s twin roles as customer and supplier, various TCO models are being reviewed in detail in the course of research for a dissertation soon to be published, and the concepts necessary for introduction are to be developed.

Since 2009 Bosch Rexroth employee Tim Brügge has, while writing his dissertation, devoted his attention to a procedural model for the total cost of ownership, one which can be used by companies in the mechanical engineering industry. Working in cooperation with the Institute for Management Accounting and Control at the University of Chemnitz, the main thrust is to develop a model for the introduction, implementation and evaluation of the TCO approach. The present article is based on excerpts from that work.