Example 01 — On-site industrial gas generation
Commercial problem
A technical supplier needs to help the customer compare continued external gas supply with investment in an on-site generation system.
Purchase price alone does not explain the economics.
Inputs
The model can combine variables such as:
- gas consumption,
- required purity,
- current supply cost,
- delivery cost,
- compressor energy use,
- electricity price,
- operating profile,
- and investment assumptions.
Value logic
The tool translates application requirements and operating costs into a comparison between alternative supply models.
Output
The user can see the economic structure of the decision, including operating cost and investment economics, rather than relying on a generic statement that on-site generation is “cheaper”.
Intended user
Sales uses the tool to structure the value discussion around the customer's actual operating situation.