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Cost Deployment And Total Cost Of Ownership With: Eric Hassen

Can you talk about Cost Deployment and how it can relate to casters?

EH: The main objective of cost deployment in regards to material handling, and specifically casters, is to identify problems that increase costs, so the issues can be resolved quickly and effectively while maintaining a balance of quality. Increasing costs from a poor caster can materialize as downtime of the dolly (i.e. tens of thousands of dollars per minute), cost of repair (i.e. caster replacement cost) and labor cost.


When choosing the correct caster for each application, our goal is to minimize these costs. Caster Connection provides the expertise needed to make an educated decision and consults each client per application to provide the solution necessary in order to capitalize and maximize the WCM pillars of Cost Deployment and Total Cost of Ownership.”

Downtime Cost = # of people waiting * Downtime * Man hour cost

Cost of mechanic repair = # of people repairing * Repair time * Man hour cost

Cost of rework = # of people reworking * Rework time * Man hour cost

Can you elaborate on initial cost versus Total Cost of Ownership?

EH: Absolutely. When a company is choosing casters for their application, the Total Cost of Ownership must be taken into consideration. High quality products perform better and last longer, and can be defined by their opportunity costs, demonstrated by less downtime, fewer production interruptions, and maximize production capacity to increase profits.

To put this in perspective, let’s say a client has been buying an inexpensive phenolic caster that breaks down after only a couple of months of use. Over a couple of years, the Total Cost of Ownership of replacing and repairing the phenolic casters can skyrocket. If that same client uses the proper caster for the application at hand (i.e. CC Apex casters), the total cost of ownership can be significantly lower.


Using the correct caster that lasts 24 months or longer eliminates many of the issues we previously discussed. Even though the initial cost of the caster is higher, the money saved over time greatly makes up for it.


So it’s critical for the client to factor in the total cost of expenses when buying casters?

EH: We believe it is essential for the client to understand this concept. If not, it's possible the client will have to endure the replacement of the caster, as well as repairs, replacement frequency, maintenance labor cost, and lost production time. Opting for an inexpensive alternative caster could render downtime, lost productivity and most importantly, loss of profits. I always tell people it’s important to be preventative rather than reactive. Our job is to ensure our clients are successful, and profitable, and when choosing a caster, a plethora of factors are involved. Helping our clients understand these aspects and the true importance casters in their operations have led to our current success today, and have helped us maintain a high level of customer retention.

Are you looking to lower the Total Cost of Ownership at your facility? Contact Caster Connection today for the right solutions.