TEROTECHNOLOGY

HASHIM V
• Developed in the United Kingdom in the early
1970s, the word “Terotechnology” comes from the
Greek root word “terein” which means “to guard”
or “to care for”. It’s used with the word
“technology” to refer to the study of the costs
associated with an asset throughout its life cycle from
acquisition to disposal. 
• It can be applied to equipment, machines, buildings,
plants, and structures and includes the expenses
and revenues of the organization that acquires them.
• It is an integrated approach to cost control and
encompasses all the cost elements starting
from design, development, installation,
operation of a product up to its final disposal.
• a combination of management, financial,
engineering, building and other practices
applied to physical assets in pursuit of
economic life cycle costs.
• Ensure selection based on best value rather than the
lowest cost. Cheaper may cost more to maintain over
their life.
• Whole life cycle costs can be reduced by extending the
useful life of component by effective maintenance
• Co-ordinating Assets to Help Achieve Overall Minimum
Costs Over Their Life Cycle Having a proactive &
complimentary approach to maintenance.
• Ensure costs effective decisions continue to be made at
the capital acquisition/ procurement stage.
• Tero-technology and whole life costing are an
important aspects of planning and budgeting for
maintenance work.
• Money value is always considered in
terotechnology

• Allow comparison of a range of solutions,

techniques, replacement strategies and time
frame
 Objective
• To optimize the installation, operation, and
maintenance of equipment using the expertise in
management, engineering, and finance.
• The different stages of an asset’s life are analyzed in
order to reduce its costs and methods are developed
to prolong its lifespan.
• To decide when to replace an existing system or
facility.
 Tero-technology
• also known as “life-cycle costing”, is a continuous cycle which
includes different steps to cover the entire lifespan of an object.
• It begins with a plant design and a selection of the required
item. Then comes its manufacturing or installation followed
with its commissions, operations, and maintenance.
• After this, Terotechnology includes its removal, sale, disposal,
dismantling, decommissioning or retirement. Finally,
Terotechnology includes a consideration about the object’s
replacement.
 Benefits
• better maintenance and a higher reliability of plant
and equipment.
• better evaluation of costs of maintenance and repair
• lesser breakdowns among the equipment.
• Finally, Terotechnology also improves the quality and
the efficiency of operations, and the communication
between suppliers, producers, and customers.
 An example
• Let’s take the example of a car company that is interested in
applying Terotechnology to forecast the exact costs associated
with assembly, transportation, maintenance, and finally a
calculation of salvage value. Many variables come into play and
must be estimated in order to perform different calculations.
Without the application of Terotechnology, the company
approaches the life cycle of an asset in an ad hoc and non-cyclical
manner, which can lead its business to a very difficult situation.
• The various financial analysis tools used by Terotechnology are for
example net present value (NPV), discounted cash flow (DCF), and
internal rate of return (IRR). The goal is to minimize the costs
associated with the asset in the future. These costs can include
maintenance, engineering, wages payable to operate the
equipment, operating costs and also disposal costs.