227 Most engineering students own a computer What costs have

2-27 Most engineering students own a computer. What costs have you incurred at each stage of your computer\'s life cycle? Estimate the total cost of ownership. Estimate the benefits of ownership. Has it been worth it?

Solution

In todays\'s world, computer plays an important role in the field of education, business, marketing, finance etc. Updating the knowledge as well as a medium of communication, it has become the topmost pat priority in our daily life.

Following are the major different costs that I incurred at each stage of computer\'s life cycle -

1. Buying or purchase cost - Which includes the cost of the computer available at the market inclusive of taxes and formalities.

2. Transportation & handling cost - This includes the transportation and handling charges between supplier, intermediate and the buyer.

3. Maintenance training cost - This includes the training cost of personnel assigned to maintain the equipments, basic operations etc.

4. Maintenance facilities cost - This includes the cost required to to service as per the usage guidelines throughout the life cycle.

5. Repair cost - This includes the repair charges that may happen due to electrical problems, hardware etc.

6. Software purchase costs - Some of the software are not available in the market for free, so we need to purchase.

7. Power cost - Even though the modern computers consumes less electric power, we need to consider its entire life cycle.

8. Accessories cost - This includes the cost of other supporting device like printer, scanner, sound systems, papers for printer etc.

In precise, we can say the total cost of ownership includes the costs of

1. Purchase cost

2. Software Cost

3. Maintenance and repair cost

4. Utility or power cost

5. Support and training cost.

Benefits of ownership -

It is one of the larger scale and most widely used business tools. Business cannot survive without the access to information, worldwide reach, and the accessibility to customers that the internet provides. Also in terms of applications of computer in travel, medical or education is of greater importance, convenient and unnecessary wastage of money can be saved in travel, education and medical etc.

Hence the benefits of ownership is worth, if we use it in a proper systematic way.