Platform

Glossary — What Every Cost Category Includes

TCO
ISO 55000

Maintenance

Cost categories

Planned, part-level work carried out at a fixed interval. Every maintenance record belongs to a specific part — never to the locomotive as a whole.

Maintenance Cost = Quantity × Price, once per interval

Includes

  • +Parts consumed at each service (quantity × unit price)
  • +Scheduled inspections, overhauls and rebuilds
  • +Both time-based (months) and usage-based (hours / km) intervals

Excludes

  • Labour — calculated separately as a percentage
  • Unplanned failure repairs

Labour

Cost categories

The workshop cost of performing maintenance. It is never entered by hand — it is derived from the parts spend on every occurrence.

Labour Cost = Sum(Part Prices) × 18% (percentage editable in the Library)

Includes

  • +Technician time to fit the parts
  • +Applied at every maintenance event

Excludes

  • Parts cost itself
  • Overheads billed separately

Consumables

Cost categories

Fluids and short-life items replaced on a fixed cadence rather than on condition. Expensed, not capitalised.

Includes

  • +Oils, coolants, greases, refrigerant
  • +Filters and gaskets
  • +Anything with a sub-year replacement interval

Excludes

  • Rotables and unit-exchange parts
  • Anything carrying a core credit

Failures

Cost categories

Unplanned breakdowns — the expected cost of parts failing before their scheduled replacement, weighted by how likely each failure is.

Failure Cost = Failure Probability × Repair Cost

Includes

  • +Replacement part plus the labour to fit it
  • +A cascade premium where one failure damages downstream parts
  • +Weighted by failure probability, not counted as a certainty

Excludes

  • Failures still inside the warranty window — those sit under Warranty

Downtime

Cost categories

Revenue lost while the locomotive is out of service. Measured from the moment the unit stops earning to the moment it returns to traffic.

Downtime Cost = Days Out of Service × Revenue per Active Day

Includes

  • +Time to repair (MTTR) valued at the daily revenue rate
  • +Both planned service windows and unplanned outages
  • +Warranty outages counted at half rate — the unit is still unavailable even when the repair is free

Excludes

  • The repair cost itself — that is Maintenance or Failures

Warranty

Warranty & risk

The period during which the manufacturer, not the operator, pays for a failure. Cover has two limits and ends at whichever is reached first.

Covered = (Years elapsed ≤ Warranty Years) AND (Km run ≤ Warranty Km)

Includes

  • +Warranty in years — for parts that age
  • +Warranty in kilometres — for parts that wear with use

Failure Probability

Warranty & risk

How likely a given part is to fail within its warranty window, expressed as a percentage. Trended against hours in service rather than held as a fixed number.

Includes

  • +Derived from criticality and replacement cadence
  • +Rises with accumulated wear
  • +Editable per part in the Library

Company Buffer (Warranty Reserve)

Warranty & risk

The money the organization should set aside per part to cover warranty claims it expects to receive.

Company Buffer = Part Cost × Failure Probability

Includes

  • +Held per part, then rolled up across the BOM
  • +Recalculates whenever price or failure probability changes

Customer TCO

TCO views

Everything the operator actually pays across the planning horizon.

Customer TCO = Total Cost − Warranty-Covered Cost

Includes

  • +Maintenance parts and derived labour
  • +Consumables
  • +Out-of-warranty failures
  • +Downtime

Excludes

  • Anything the warranty covers
  • The manufacturer's warranty reserve

Organization TCO

TCO views

What the manufacturer carries — the mirror image of the customer's bill.

Organization TCO = Warranty-Covered Cost + Company Buffer

Includes

  • +Warranty replacement cost
  • +Service forecasting
  • +Company warranty reserve across all parts

Maintenance Interval

Rates & intervals

How often a part needs attention, expressed in the unit that actually governs it. Where several limits apply, whichever is reached first triggers the work.

Includes

  • +Running hours — engine internals
  • +Kilometres — running gear and brakes
  • +Months — calendar-driven inspections

Extended Cost

Rates & intervals

The cost of a whole part line rather than a single unit.

Extended Cost = Unit Price × Quantity per Component

Includes

  • +Used for BOM roll-ups and depreciation

Depreciation

Rates & intervals

How a capitalised part loses book value over its useful life. Each part depreciates on its own schedule (IAS 16 component approach).

Includes

  • +Straight-line for steady-wear parts
  • +Units-of-production where charge scales with utilisation

Excludes

  • Consumables — expensed as incurred, never capitalised