APPA 1000-2 – Part 2: Implementation and Data Elements [PDF]

This standard builds on the work found in Total Cost of Ownership for Facilities Asset Management (TCO) – Part 1: Key Principles Total Cost of Ownership. The TCO formula and the interdependency and interrelatedness of each principle is critical to the success of TCO implementation.

TCO is a holistic approach that assists organizations by creating collaborative partnerships across an organization to join information, personnel, and resources to transform the facilities professional culture.  TCO rests on a framework that organizes the entire total cost of ownership of any asset. Successful implementation requires a TCO framework, to ensure all elements are included and used to make the best decisions for the asset management of objects, assets, facilities, and infrastructure.

TCO assists an organization with three major asset decisions:

• New product, facilities, and infrastructure asset selection decisions
• Existing facilities and infrastructure asset renovation or removal decisions
• Short- and long-term financial planning, budget analysis, and reporting.