Pump Life Cycle Cost 1 Models As Defined
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WORKSHOP CARTAGENA - JULIO 2007 Pump Life Cycle Cost
Pump Life Cycle Cost Models As Defined By Europump And Hydraulic Institute By: Daniel Irigo
Pump Division
Life Cycle Cost
The life cycle cost (LCC) of any piece of equipment is the total lifetime cost to purchase, install, operate, maintain, and dispose of that equipment. Determining LCC involves a methodology to identify and quantify all of the components of the LCC equation.
Pump Division
Life Cycle Cost What Is The Life Cycle Costing Difference Between an $11.00 Gallon of Paint and an
$18.00 Gallon of Paint?
Pump Division
Life Cycle Cost Which One Do You Buy? WHY?
Pump Division
Life Cycle Cost What Information Is Needed?
Pump Division
Life Cycle Cost $11.00
Amount of Pigment Number of Coats Cost of Labour Time to do Job Life of Paint Gallons/Job
X 2 $5.00/hour 40 1 year 10
$18.00
2X 1 $5.00/hour 20 2 years 5 1
6
Pump Division
Life Cycle Cost 2 Year Life Cycle Cost $11.00 Gallon Material: 10 x 11.00 x 2 = $220 Labour: $ 5.00/hr x 40 x 2 = $400 TOTAL $620
Pump Division
Life Cycle Cost 2 Year Life Cycle Cost $18.00 Gallon Material: 5 x 18.00 x 1 = $ 90 Labour: $ 5.00/hr x 20 x 1 = $100 TOTAL $190
Pump Division
Life Cycle Cost $ 11.00 Pigment
X
$ 18.00 2X
Number of Coats 2
1
Cost of Labour
$ 5.00/hour
$ 5.00/hour
Time to do Job
40
20
Life of Paint
1 year
2 years
Gallons / Job
10
5
2 years labour
$ 400
$ 100
2 years material
$ 220
$ 90
2 years LCC
$ 620
$ 190
Pump Division
Life Cycle Cost
Initial and installation costs only. Competitive markets, need to improve profitability of operations. Environmental impact, energy efficient, reduce emissions and preserve natural resources. 30-50% of energy consumed by pump systems can be saved by equipment or control changes
Pump Division
Life Cycle Cost LCC Analysis Life Cycle Cost analysis can be done for new pump installation as well as for existing pump installation for the remaining life time.
Pump Division
Life Cycle Cost Centrifugal Pumps Cinst Ce ofCLCC Cor Components op
Cin
Cdt
Cc
Cv
Cin = initial cost
Cdt = loss of production cost
Cinst = installation cost
Cc = decontamination cost
Ce = energy cost
Cv = removal cost
Cop = operational cost Cor = maintenance & repair costs
Pump Division
Life Cycle Cost Centrifugal Pumps Cin
Initial Cost
Develop specification Time involved in queries and administration purchase order Purchasing of equipment Drawings, documents & certificates Testing, inspections and measurements CE - marking 3rd Party inspection Spare parts
Pump Division
Life Cycle Cost Centrifugal Pumps Cinst
Installation Cost
Transport to site Unloading, temporary stocking Site inspections Special preservations Civil works Cranage Positioning, alignment, anchorage
Life Cycle Cost Cinst
Installation Cost
Grouting Baseplate Alignment pump train Connecting main and auxillary piping Instrumental connections Electrical connections Start-up ( Initial) Commissioning Training
Pump Division
Pump Division
Life Cycle Cost Centrifugal Pumps Ce
Energy Cost
Operating pump at BEP
Optimum clearances
Low energy for auxillary systems
Optimize pump system, like valve throttling
Life Cycle Cost Centrifugal Pumps Cop
Operational Cost
Man hours required from operators
Cost for routine maintenance
Condition Monitoring
Filter cleaning
Etc.
Pump Division
Life Cycle Cost
Cor
Centrifugal Pumps Maintenance and Repair Costs
Cost general overhauls / repairs Inventory cost spare parts Maintenance cost depending strategy Run to failure Predictive Preventive Pro-active Etc.
Pump Division
Pump Division
Life Cycle Cost Centrifugal Pumps Cdt
Loss of production cost
Unscheduled Outage costs, due to pump reliability issues.
Pump Division
Life Cycle Cost Centrifugal Pumps Cc
Decontamination Cost
Soil pollution
Disposal remaining pump product
Control for compliance with environmental legislation.
Pump Division
Life Cycle Cost Centrifugal Pumps Cv
Removal Cost
Equipment
Installation
Pump Division
Life Cycle Cost Centrifugal Pumps
LCC = Cin + Cinst + Ce + Cop + Cor + Cdt + Cc + Cv
Pump Division
Life Cycle Cost Centrifugal Pumps
2. 2 2. % 3% 6 0. .8% 4%
Pump LCC model Example Overhung Process pump (SCE)
Removal
Purchase 43 .7 %
Installation
Contamination
0. 4%
44 .2 %
Energy
Operational
Maintenance
Q = 605 m3/hr H = 55,8 meter
= 81,5% Power = 72 kW Industry = Petrochemical
Pump Division
Life Cycle Cost Centrifugal Pumps CONCLUSIONS Initial CAPEX is only a small percentage of LCC Energy cost and maintenance and repair cost are main contributors to TOTAL LCC LCC cost depends on: Industry Process Maintenance strategy
Include NPV in evaluations (Net present value)
Life Cycle Cost, Maintenance Programs
Pump Division
Goals Prolonged Machinery Life Minimum Unscheduled Downtime Scheduled Shutdowns: Unnecessary overhauls eliminated Reduce Maintenance Costs No standby equipment
Increase Plant Production
Pump Division
Life Cycle Cost Centrifugal Pumps Example: Problem Control Valve Pumping storage tank to pressurised tank Fluid Contains Solids Heat exchanger heats fluid Flow regulated by Control Valve to 80 m^3/hr. Valve fails by erosion cavitation every 12 months. Repair Cost $4k Project Engineer to change to cavitation resistant but wants to look at other options and perfrom LCC analysis on alternative solutions.
Life Cycle Cost
Pump Division
Centrifugal Pumps System Analysis 15-20 % Open Pressure Drop
A Motor efficiency 90% 0.08 $/kWhr
Rated at 100m^3/hr Operates at 80 m^3/hr 6000 hr/year
B
Life Cycle Cost
Pump Division
Centrifugal Pumps Options 1. A new Control Valve to accommodate high pressure differential. 2. The impeller can be trimmed to reduce pressure drop across control valve. 3. Install VFD, remove control valve 4. Do nothing.
Pump Division
Life Cycle Cost 100 90 80 70 60 50 40 30 20 10 0
System Curve A&D
430 mm impeller 375 mm impeller
Reduced Speed
0
20
40
60
80
100 90 System Curve 80 B 70 60 System Curve 50 40 C 30 20 10 0 100 120 140 160
Flow m^3/hr
Effy %
Head m
Pump and System Curves
Life Cycle Cost Centrifugal Pumps LCC Cost and Assumptions Annual Routine maintenance $ 500 Pump Repair Cost $ 2500 every two years No disposal or environmental costs 8-year project life Capital Project interest rate 8%, inflation 4% New Control valve $ 5000 Modify Impeller $ 2250 Install VFD $ 21500 Valve Repair $ 4000
Pump Division
LCC $ Cost
Cost Comparison (1) Change Control v/v 430
(2) Trim Impeller 375
(3) VFD
430
(4) Repair Control v/v 430
71.7
42.0
34.5
71.7
Efficiency %
75.1
72.1
77
75.1
Flow m^3/hr
80
80
80
80
Power kW
23.1
14.0
11.6
23.1
Energy $/year
11,088
6,720
5,568
11,088
New Valve
5000
0
0
0
Modify Impeller
0
2250
0
0
VFD
0
0
20000
0
Install VFD
0
0
1500
0
Valve Repair/year
0
0
0
4000
Impeller Diameter mm Pump Head m
Pump Division
Pump Division
LCC Comparison
LCC $ Cost
(2) Trim Impeller 2250 0.08
(3) VFD
Initial Investment Energy (now) /kWhr
(1) Change Control v/v 5000 0.08
21500 0.08
(4) Repair Control v/v 0 0.08
Power kW Operating Hours Cost of Energy Maintenance/year Repair / 2nd Year Other yearly costs Downtime cost / year
23.1 6000 11,088 500 2500 0 0
14.0 6000 6,720 500 2500 0 0
11.6 6000 5,568 1000 2500 0 0
23.1 6000 11,088 500 2500 4000 0
Environmental cost
0
0
0
0
Disposal Cost / year
0
0
0
0
Life time in years Interest Rate % Inflation Rate % Present LCC value
8 8 4 91,827
8 8 4 59,481
8 8 4 74,313
8 8 4 113,930
Pump Division
Life Cycle Costs
Pump Life Cycle Cost Models As Defined By Europump And Hydraulic Institute By: Daniel Irigo
Pump Division
Life Cycle Cost
The life cycle cost (LCC) of any piece of equipment is the total lifetime cost to purchase, install, operate, maintain, and dispose of that equipment. Determining LCC involves a methodology to identify and quantify all of the components of the LCC equation.
Pump Division
Life Cycle Cost What Is The Life Cycle Costing Difference Between an $11.00 Gallon of Paint and an
$18.00 Gallon of Paint?
Pump Division
Life Cycle Cost Which One Do You Buy? WHY?
Pump Division
Life Cycle Cost What Information Is Needed?
Pump Division
Life Cycle Cost $11.00
Amount of Pigment Number of Coats Cost of Labour Time to do Job Life of Paint Gallons/Job
X 2 $5.00/hour 40 1 year 10
$18.00
2X 1 $5.00/hour 20 2 years 5 1
6
Pump Division
Life Cycle Cost 2 Year Life Cycle Cost $11.00 Gallon Material: 10 x 11.00 x 2 = $220 Labour: $ 5.00/hr x 40 x 2 = $400 TOTAL $620
Pump Division
Life Cycle Cost 2 Year Life Cycle Cost $18.00 Gallon Material: 5 x 18.00 x 1 = $ 90 Labour: $ 5.00/hr x 20 x 1 = $100 TOTAL $190
Pump Division
Life Cycle Cost $ 11.00 Pigment
X
$ 18.00 2X
Number of Coats 2
1
Cost of Labour
$ 5.00/hour
$ 5.00/hour
Time to do Job
40
20
Life of Paint
1 year
2 years
Gallons / Job
10
5
2 years labour
$ 400
$ 100
2 years material
$ 220
$ 90
2 years LCC
$ 620
$ 190
Pump Division
Life Cycle Cost
Initial and installation costs only. Competitive markets, need to improve profitability of operations. Environmental impact, energy efficient, reduce emissions and preserve natural resources. 30-50% of energy consumed by pump systems can be saved by equipment or control changes
Pump Division
Life Cycle Cost LCC Analysis Life Cycle Cost analysis can be done for new pump installation as well as for existing pump installation for the remaining life time.
Pump Division
Life Cycle Cost Centrifugal Pumps Cinst Ce ofCLCC Cor Components op
Cin
Cdt
Cc
Cv
Cin = initial cost
Cdt = loss of production cost
Cinst = installation cost
Cc = decontamination cost
Ce = energy cost
Cv = removal cost
Cop = operational cost Cor = maintenance & repair costs
Pump Division
Life Cycle Cost Centrifugal Pumps Cin
Initial Cost
Develop specification Time involved in queries and administration purchase order Purchasing of equipment Drawings, documents & certificates Testing, inspections and measurements CE - marking 3rd Party inspection Spare parts
Pump Division
Life Cycle Cost Centrifugal Pumps Cinst
Installation Cost
Transport to site Unloading, temporary stocking Site inspections Special preservations Civil works Cranage Positioning, alignment, anchorage
Life Cycle Cost Cinst
Installation Cost
Grouting Baseplate Alignment pump train Connecting main and auxillary piping Instrumental connections Electrical connections Start-up ( Initial) Commissioning Training
Pump Division
Pump Division
Life Cycle Cost Centrifugal Pumps Ce
Energy Cost
Operating pump at BEP
Optimum clearances
Low energy for auxillary systems
Optimize pump system, like valve throttling
Life Cycle Cost Centrifugal Pumps Cop
Operational Cost
Man hours required from operators
Cost for routine maintenance
Condition Monitoring
Filter cleaning
Etc.
Pump Division
Life Cycle Cost
Cor
Centrifugal Pumps Maintenance and Repair Costs
Cost general overhauls / repairs Inventory cost spare parts Maintenance cost depending strategy Run to failure Predictive Preventive Pro-active Etc.
Pump Division
Pump Division
Life Cycle Cost Centrifugal Pumps Cdt
Loss of production cost
Unscheduled Outage costs, due to pump reliability issues.
Pump Division
Life Cycle Cost Centrifugal Pumps Cc
Decontamination Cost
Soil pollution
Disposal remaining pump product
Control for compliance with environmental legislation.
Pump Division
Life Cycle Cost Centrifugal Pumps Cv
Removal Cost
Equipment
Installation
Pump Division
Life Cycle Cost Centrifugal Pumps
LCC = Cin + Cinst + Ce + Cop + Cor + Cdt + Cc + Cv
Pump Division
Life Cycle Cost Centrifugal Pumps
2. 2 2. % 3% 6 0. .8% 4%
Pump LCC model Example Overhung Process pump (SCE)
Removal
Purchase 43 .7 %
Installation
Contamination
0. 4%
44 .2 %
Energy
Operational
Maintenance
Q = 605 m3/hr H = 55,8 meter
= 81,5% Power = 72 kW Industry = Petrochemical
Pump Division
Life Cycle Cost Centrifugal Pumps CONCLUSIONS Initial CAPEX is only a small percentage of LCC Energy cost and maintenance and repair cost are main contributors to TOTAL LCC LCC cost depends on: Industry Process Maintenance strategy
Include NPV in evaluations (Net present value)
Life Cycle Cost, Maintenance Programs
Pump Division
Goals Prolonged Machinery Life Minimum Unscheduled Downtime Scheduled Shutdowns: Unnecessary overhauls eliminated Reduce Maintenance Costs No standby equipment
Increase Plant Production
Pump Division
Life Cycle Cost Centrifugal Pumps Example: Problem Control Valve Pumping storage tank to pressurised tank Fluid Contains Solids Heat exchanger heats fluid Flow regulated by Control Valve to 80 m^3/hr. Valve fails by erosion cavitation every 12 months. Repair Cost $4k Project Engineer to change to cavitation resistant but wants to look at other options and perfrom LCC analysis on alternative solutions.
Life Cycle Cost
Pump Division
Centrifugal Pumps System Analysis 15-20 % Open Pressure Drop
A Motor efficiency 90% 0.08 $/kWhr
Rated at 100m^3/hr Operates at 80 m^3/hr 6000 hr/year
B
Life Cycle Cost
Pump Division
Centrifugal Pumps Options 1. A new Control Valve to accommodate high pressure differential. 2. The impeller can be trimmed to reduce pressure drop across control valve. 3. Install VFD, remove control valve 4. Do nothing.
Pump Division
Life Cycle Cost 100 90 80 70 60 50 40 30 20 10 0
System Curve A&D
430 mm impeller 375 mm impeller
Reduced Speed
0
20
40
60
80
100 90 System Curve 80 B 70 60 System Curve 50 40 C 30 20 10 0 100 120 140 160
Flow m^3/hr
Effy %
Head m
Pump and System Curves
Life Cycle Cost Centrifugal Pumps LCC Cost and Assumptions Annual Routine maintenance $ 500 Pump Repair Cost $ 2500 every two years No disposal or environmental costs 8-year project life Capital Project interest rate 8%, inflation 4% New Control valve $ 5000 Modify Impeller $ 2250 Install VFD $ 21500 Valve Repair $ 4000
Pump Division
LCC $ Cost
Cost Comparison (1) Change Control v/v 430
(2) Trim Impeller 375
(3) VFD
430
(4) Repair Control v/v 430
71.7
42.0
34.5
71.7
Efficiency %
75.1
72.1
77
75.1
Flow m^3/hr
80
80
80
80
Power kW
23.1
14.0
11.6
23.1
Energy $/year
11,088
6,720
5,568
11,088
New Valve
5000
0
0
0
Modify Impeller
0
2250
0
0
VFD
0
0
20000
0
Install VFD
0
0
1500
0
Valve Repair/year
0
0
0
4000
Impeller Diameter mm Pump Head m
Pump Division
Pump Division
LCC Comparison
LCC $ Cost
(2) Trim Impeller 2250 0.08
(3) VFD
Initial Investment Energy (now) /kWhr
(1) Change Control v/v 5000 0.08
21500 0.08
(4) Repair Control v/v 0 0.08
Power kW Operating Hours Cost of Energy Maintenance/year Repair / 2nd Year Other yearly costs Downtime cost / year
23.1 6000 11,088 500 2500 0 0
14.0 6000 6,720 500 2500 0 0
11.6 6000 5,568 1000 2500 0 0
23.1 6000 11,088 500 2500 4000 0
Environmental cost
0
0
0
0
Disposal Cost / year
0
0
0
0
Life time in years Interest Rate % Inflation Rate % Present LCC value
8 8 4 91,827
8 8 4 59,481
8 8 4 74,313
8 8 4 113,930
Pump Division
Life Cycle Costs
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