Total Cost Of Ownership Models

With the difficult economic challenges currently facing the steel industry, it is essential to perform a complete analysis when determining which rolls to purchase. A properly designed “Total Cost of Ownership” model can result in significant savings. This paper will review the costs associated with rolls in both Hot Strip and Cold Strip Mills. The multitude of factors that must be considered in performing a complete analysis for the roll purchasing process will be discussed. Models for both Hot Strip and Cold Mills will be presented. Examples where traditional analysis can lead to expensive, incorrect decisions will be presented.