April 2005 – Montgomery, IL – Benetech has developed a formal TCO—Total Cost of Ownership – a process, designed to help coal yards assess their asset ownership costs and to develop ways to reduce operation and maintenance expenses.

"The coal-fired electric utility industry understands the delicate balance of prudent Operation and Maintenance costs, while maintaining an acceptable level of risk" said Ron Pircon, President & CEO. "Benetech has worked for the last several years to develop standards that will allow coal yards to run more efficiently and profitably. We start by identifying hidden and ongoing costs associated with operations, and find ways to minimize or eliminate them – while streamlining processes and procedures to positively impact performance and preserve the asset."

Simply stated, TCO consists of the costs, direct and indirect, incurred throughout the life cycle of an asset, including acquisition, deployment, operation, support and retirement.

The process is designed to identify the goals of the operation and subsequently target appropriate steps to reach them with positive impact on the ongoing operations:

1. Understanding of the Objectives of both Corporate and Coal Yard Management. The first step in the audit ensures that the process is directed toward management expectation.


2. Cost Audit. An audit of the facility to assess costs, and compare the actual costs against accepted benchmarks, is performed. Direct and indirect costs are considered: Direct costs include purchase/lease price, operations, administration; indirect costs include indirect maintenance, operational support, downtime, and other "hidden" costs.


3. Formal Recommendations. Comparisons of actual and benchmark costs are analyzed, and recommendations documented to help coal yard operations work within acceptance levels that will produce the cost-savings results required.


4. Ongoing Monitoring. Benetech will help the company continue its cost-saving procedures, with check-in points and updates on new and improved procedures.

Consideration of TCO issues has also been reflected in Benetech’s latest solutions offering: The InteliFlo™. The InteliFlo – featuring the exclusive J-Glide™ smooth loading technology – is an adjustable, skirtless transfer system that represents a breakthrough in material handling by preventing dust rather than just passively controlling it. The InteliFlo was designed to reduce TCO and maintenance costs, as well as operational risk.

The InteliFlo’s revolutionary patent pending design eliminates the need for skirt boards, seals, conveyor discharge hoods and complex "load bed" designs as well as associated labor and maintenance costs. It also significantly reduces risk related to pluggage, coal spillage and airborne dust that can lead to a catastrophic fire or explosion.

Benetech works as a professional advisor to utility plants to recommend and develop ways to increase efficiency, while providing a full range of products and services relating to the safe storage, transfer and processing of coal. For more information on Benetech solutions, call Customer Service at 1-800-843-2625.


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