OEE & Factory Performance worked example

Smart Sensor Cost per Asset with assets to instrument of 500 units: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop assets to instrument to 500 units, then walk the calculation through step by step. Estimate smart sensor deployment cost per asset.

The inputs for this scenario

  • Assets to instrument: 500 units (the input this scenario stresses; the baseline uses 1,000)
  • Sensor hardware cost per asset: 12 $ / unit (held at the documented default)
  • Installation and commissioning labor: 1,800 $ (held at the documented default)
  • Gateway, network and software overhead: 600 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total cost = quantity × variable cost + labor/setup + burden.
  • Total smart sensor cost per asset cost works out to 8,400 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per unit works out to 16.8 $ / piece at these inputs.
  • Variable smart sensor cost per asset cost works out to 6,000 $ at these inputs.
  • Fixed smart sensor cost per asset adders works out to 2,400 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where assets to instrument sits at 1,000 units and the headline result is 14,400 $, this scenario comes in 41.67% below the baseline at 8,400 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to assets to instrument, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It treats installation labor and overhead as flat lump sums; in reality both can step up as you add edge gateways or cross network segments, so very large fleets need tiered modeling.

Results at a glance

  • Total smart sensor cost per asset cost: 8,400 $ (headline result)
  • Cost per unit: 16.8 $ / piece
  • Variable smart sensor cost per asset cost: 6,000 $
  • Fixed smart sensor cost per asset adders: 2,400 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Smart Sensor Cost per Asset calculator, set assets to instrument to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.