Calculating Pole Lifecycle Costs

 

The Cost of Ownership

Wood poles are an important revenue-producing asset and a critical component of your delivery infrastructure. The wood pole plant is typically among the top three or four largest assets of a T&D company. Do you know the current replacement value of your pole plant?

 

Insert the number of poles and the average cost and left click on the equal sign to obtain the answer.

 

 

 

What is the Current Level of Spending on Wood Poles?

Many managers will answer this question with the pole maintenance budget number. But that is usually just a small part of the true total cost. Fill in the blanks to obtain a more complete picture of your internal spending for poles:

 

 

Does the actual total spending create optimum value and performance for your company? A comprehensive inspection and maintenance program can reduce avoidable replacement costs and drive down total current spending.

 

For assistance with inspection methods, please contact Kevin Niles at 716-319-3404 or kniles@osmose.com.

 

 

What are the Lifecycle Costs of Pole Ownership?

Many of the true costs of pole ownership are not easily identified nor accounted for in a single line item. The following exercise illustrates the lifecycle costs of a pole:

 

 

 

Which of the above costs is subject to the most management scrutiny and most likely to be cut?

 

Which of the above costs has the potential to eliminate or defer the other lifecycle costs?

 

Yes, the answer is the investment in Maintenance! As you can see, the component costs are significant and the value of extending pole lifecycles is evident.

 

For assistance with inspection methods, please contact Kevin Niles at 716-319-3404 or kniles@osmose.com.