Total Cost of Ownership

PINPOINTING TOTAL COST OF OWNERSHIP WITH SYYCLOPS

Syyclops is a next-generation digital twin technology that is helping facility managers and finance professionals within organizations of all types better understand their buildings.

Syyclops is an especially valuable tool when it comes to calculating the total cost of ownership (TCO) of a building – or an entire campus of buildings. Syyclops brings all building data together in one place, and in real-time, so that better, more reliable forecasting and planning can be done.

The Old Way:

Plug in last year’s costs into spreadsheet and give it a 3% increase – a recipe for inaccurate data

The Syyclops Way:

Recognize that calculating total cost of ownership (TCO) is a complicated endeavor and consider all of the elements and associated costs that go into managing a building asset.

  • Initial Asset Costs (Design, Construction, Install)
  • Operation (Energy, Custodial & Grounds)
  • Maintenance (Repairs, Breakdowns & Retrofits)
  • Utilities (Electricity, Gas, Coal, Solar, Wind)
  • Renewals (Replacements, Upgrades, Improvements)
  • Cost of Removal and Disposal

Is this everything? And does it all contribute to TCO? Depends who you ask.

For decades, no standard definition of TCO existed, much less a uniform way of calculating it. That’s changing now, but things are still murky. According to the APPA, TCO is “a holistic approach to maximizing return on investment of managed physical assets that includes the summation of all known and estimated costs to include first, recurring, renewal / replacement and end of useful life costs revised at critical decision points to aid in life-cycle asset management decisions.”

Fair enough. But how does that calculation occur in the real world? Mostly with spreadsheets, if at all.
And the data in those documents is stale the moment it’s captured. Enter Syyclops.

Total Cost of Ownership With Syyclops

With this view of an entire building’s assets and systems, and with the necessary data in place to cal-
culate reliable TCO estimates, building managers are light years ahead of where they’d otherwise be.

They can allocate resources (and time and energy and manpower) where they’re needed most and make
smarter, more informed purchasing and maintenance decisions.
Other, related key performance indicators (KPIs) for asset management include the following, all of which
Syyclops can also help illustrate. Imagine all of these metrics accessible in one place, on-demand, all with
real-time data.

  • Facility Condition Index (FCI)
  • Deferred Maintenance Backlog
  • Facilities Deterioration Rate 
  • Deficiency/Requirement
  • Recapitalization/Reinvestment Rate
  • Facility Operating Gross Square Foot (GSF) 
  • Custodial Costs per square foot
  • Grounds Keeping Costs per square foot 
  • Energy Costs per square foot
  • Utility Costs per square foot
  • Waste Removal Costs per square foot
  • Facility Operating Current Replacement Value (CRV) Index

Once historical trends are gathered for your unique asset, they will be overlaid with industry trends (labor shortages in cities) and Syyclops will provide a more refined projection of your buildings future cost of Ownership.

CUSTOMER TESTIMONIAL: ARKANSAS STATE UNIVERSITY

Syyclops is next-generation digital twin software that uses artificial intelligence, integrated with Azure Cognitive Services and proprietary technology to bring much-needed efficiency, awareness and insight to construction and facilities management. On demand. Easy to use. Unparalleled visibility and forecasting.

“For building campus operational continuity, we must move from a system of record to a system of insight. Syyclops is helping us do exactly that.”

 – Syyclops Customer, David Handiwork,

Director of Facilities, Arkansas State University