Terotechnology

Terotechnology is a kind of applied science for measuring the operational values of physical
assets. It is concerned with things such as the installation, maintenance and replacement of
those assets. Professionals who are involved in terotechnology look at tangible assets of a
company or business such as buildings, equipment and vehicles. They measure how these
items will provide a net value for certain years until they need to be replaced.
Part of terotechnology is called life-cycle costing. Life-cycle costing can include attention to
depreciation and other tax-related values. Generally, in life-cycle costing, one adds up all of
the positive and negative values associated with a physical asset during a certain period of
time to produce a net result. Companies use this net value to understand how ownership and
use of a piece of equipment or other physical asset during that period of time will affect their
bottom line.
A big part of terotechnology is in understanding the role of maintenance and the value of a
warranty. Many larger pieces of equipment and other physical assets come with warranties
offered by the manufacturer or vendor. In terotechnology, the way in which these warranties
provide value relative to projected costs is examined.
Professionals who are involved in terotechnology use what is called a bath-tub curve, which is
used to indicate the failure rate for equipment or machines. In the beginning of its life cycle,
an item might be relatively likely to fail for various reasons, such as manufacturing or
installation errors. After becoming acclimated to its environment, the item will be less likely
to fail until wear and age make the failure rate start to increase again. The shape of this
projected failure rate when plotted on a graph resembles a bath tub, which is the reason for its
name.
Terotechnology represents a differentiation between all of the physical assets that a business
owns and other assets that are intangible and not associated with operating costs. Typically,
businesses hold certain physical assets for production and focus their additional capital on the
kinds of intangible assets that dont generate more overhead costs. The science of evaluating
physical items is, for many companies, a way to manage the inevitable and necessary
ownership of physical equipment.
Vendors also apply terotechnology to their products. These are the same products that will
become assets for buyers, so vendors also can benefit from the same observational science to
know more about the value of their products in the hands of others. Overall, this kind of
analysis is a way for businesses to keep tabs on the expenses involved in owning large
machines or other gear, as well as office space and other physical parts of their business.