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20 Run Life

The document discusses goals of making more money by producing more, selling for more, or reducing costs. It discusses typical contracts and operating costs, with the common target being operating cost. It provides an example of contractor costs and operating costs.

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126 views11 pages

20 Run Life

The document discusses goals of making more money by producing more, selling for more, or reducing costs. It discusses typical contracts and operating costs, with the common target being operating cost. It provides an example of contractor costs and operating costs.

Uploaded by

ام فاطمة البطاط
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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WHAT IS OUR GOAL?

IS IT TO MAKE MONEY?
THE GOAL IS TO MAKE
MORE MONEY
HOW CAN WE MAKE MORE?

Produce More Sell it for More Reduce Costs


A TYPICAL CONTRACT
RUNLIFE

OPERATING
COST
OPERATING
COST

RUNLIFE
RUNLIFE

OPERATING
COST

MAKE MORE MONEY TOGETHER


What is needed for this type of contract?

Openness Trust

Desire Common Target


What is the Common Target for
this type of contract?
Common Target is Operating Cost

Cost of ESP + Cost of W/O


__________________________
=
Run Life
Item Contractor A Contractor B
Cost of ESP $40K $60K
Run Life 400 days 550 days
Cost of W/O $90K $90K

Capital Cost > 50%

Equip. Day Cost > 9%


Operating Cost >16%
RUNLIFE

QUESTIONS ?
OPERATING
COST

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