| Production requirements | 25% | Required output, product specifications, shift pattern, changeover frequency, and available floor space. | Request a written specification sheet stating rated output, test conditions, acceptable product tolerances, utilities, and exclusions. | Compare expected saleable output—not just rated speed. Account for changeovers, cleaning, stoppages, and rejected product. |
| Supplier capability and support | 20% | Relevant installation experience, technician availability, spare-parts policy, training, warranty terms, and service response commitments. | Check references for comparable installations; request a service plan, warranty document, spare-parts list, and training schedule. | Include travel, labor, shipping, import duties where applicable, and the expected time to obtain critical replacement parts. |
| Product quality and process control | 20% | Ability to meet agreed dimensions, weight or material-use tolerances, appearance requirements, and documented quality checks. | Agree acceptance criteria in advance. Inspect a representative sample and record measurements, defects, and test conditions. | Estimate material loss, inspection labor, rework, and disposal costs using the buyer's own production data. |
| Factory Acceptance Test (FAT) | Included above | Machine operation at the supplier's facility before shipment, using agreed materials and settings where feasible. | Run a written test protocol; record operating time, interruptions, output, rejects, safety checks, and open issues. Define pass/fail criteria in the contract. | Identify commissioning gaps before delivery. Clarify who supplies test materials and pays for travel, repeat tests, or corrective work. |
| Site Acceptance Test (SAT) | Included above | Installation and operation at the buyer's site with site utilities, operators, and production conditions. | Verify installation, guarding, emergency stops, electrical and air connections, operator training, and performance against agreed acceptance criteria. | Budget for installation labor, utilities, production downtime, commissioning, and any site modifications. |
| Pilot or extended run | Included above | Performance over a representative operating period, including planned stops, routine adjustments, and material changes. | Agree the run duration and log good output, rejects, downtime, interventions, and causes of stoppage. Use a consistent measurement method. | Provides better inputs for labor, yield, maintenance, and downtime estimates than a short demonstration alone. |
| Safety, compliance, and documentation | 15% | Machine guarding, emergency stops, risk documentation, electrical documentation, operating instructions, and applicable local requirements. | Review the risk assessment, manuals, maintenance instructions, and conformity documentation relevant to the destination jurisdiction. | Allow for required inspections, operator training, protective equipment, and any modifications needed for local rules. |
| Maintainability and parts | 10% | Access to routine service points, maintenance intervals, parts identification, service tools, and parts availability. | Request a preventive-maintenance schedule and recommended initial spares list. Confirm part numbers, lead times, and prices in writing. | Estimate annual parts and maintenance labor from the supplier's schedule, then validate with operating records after commissioning. |
| Commercial clarity | 10% | Scope of supply, delivery terms, payment milestones, installation responsibilities, warranty exclusions, and acceptance conditions. | Compare itemized quotations using the same specification, delivery location, test scope, and acceptance terms. | Look for excluded costs such as freight, taxes, tooling, software, commissioning, training, or site preparation. |
| Long-Term Operating Cost Worksheet |
| Initial installed cost | Machine price + freight and insurance + duties and taxes + installation + commissioning + training + site preparation. | Use itemized supplier quotations and local charges. Record one-time costs separately from recurring costs. |
| Annual maintenance and parts | Preventive-maintenance labor + replacement parts + service visits + required tools or inspections. | Use the documented maintenance schedule and quoted parts list; update estimates with actual usage and service records. |
| Annual utilities and consumables | Measured electricity and other utilities + process consumables, calculated using local rates and actual usage. | Request utility requirements, then measure consumption during FAT or SAT where practical. Do not assume rated load equals average use. |
| Downtime and labor | Unplanned downtime hours × the buyer's documented cost per downtime hour + operator and maintenance labor. | Define downtime consistently and track its causes during pilot runs and normal production. |
| Total cost of ownership | Initial installed cost + recurring operating costs over the chosen evaluation period − any documented residual value. | Compare machines over the same period and production assumptions. State the currency, evaluation period, and assumptions used. |