Position Paper | Life Cycle Performance And Cost : Rethinking Cost Through The Lens of Availability And Value Creation

Why should performance be at the center of cost management?
Too often, purchasing decisions are driven by price or Total Cost of Ownership (TCO). While these metrics matter, they overlook a critical dimension: asset availability. Every hour of downtime can generate losses that far exceed maintenance savings through missed operations, dissatisfied customers, and even contractual penalties.

This position paper addresses a common blind spot: Finance and Procurement frequently operate in silos, each optimizing part of the problem without securing overall performance. The real shift lies in moving from “buying a product or service” to “buying its ability to create value.”

Inside, you’ll explore:

• Why TCO alone is not enough and how to factor revenue contribution into decisions
• The essential KPIs for performance management: availability rate, MTBF, MTTR, and cost of downtime
• Practical levers for performance-based contracting, including SLAs, bonus-malus systems, and RAM reporting
• A governance model that unites Finance and Procurement to align costs, performance, and value creation

Download the full position paper to discover how availability can become a strategic advantage and why performance should be the cornerstone of your procurement strategy.