Key Analysis of Operation Cost Diagram

This diagram illustrates the cost structure of system implementation and operation, highlighting the following key concepts:

1. High Initial Deployment Cost: At the beginning of a system’s lifecycle, deployment costs are substantial. This represents a one-time investment but requires significant capital.
2. Perpetual Nature of Operation Costs: Operation costs continue indefinitely as long as the system exists, making them a permanent expense factor.
3. Components of Operation Cost: Operation costs consist of several key elements:
   • Energy Cost
   • Labor Cost
   • Disability Cost
   • Additional miscellaneous costs (+@)
4. Role of Automation Systems: As shown on the right side of the diagram, implementing automation systems can significantly reduce operation costs over time.
5. Timing of Automation Investment: While automation systems also require initial investment during the early phases, they deliver long-term operation cost reduction benefits, ultimately improving the overall cost structure.

This diagram effectively visualizes the relationship between initial costs and long-term operational expenses, as well as the cost optimization strategy through automation.

With Claude