EXPERIENCE
RELIABILITY
SAFETY
Reference: Hydraulic Institute (www.pumps.org)
Understanding
Life Cycle Costs
EXPERIENCE
RELIABILITY
SAFETY
•
What is Life Cycle Cost (LCC)
•
Calculating Total LCC
•
LCC Components
Introduction
EXPERIENCE
RELIABILITY
SAFETY
What is Life Cycle Cost
What is Life Cycle Cost
Life Cycle Cost (LCC)
Life Cycle Cost (LCC)
•
•
Total of Lifetime Cost to Purchase, Install, Operate, Maintain a
Total of Lifetime Cost to Purchase, Install, Operate, Maintain a
nd Dispose
nd Dispose
of Equipment
of Equipment
Components of LCC
Components of LCC
••
Initial Installation
Initial Installation
• •
Commissioning
Commissioning
• •Energy
Energy
• •Operation
Operation
••
Maintenance and Repair
Maintenance and Repair
• •
Downtime
Downtime
• •Environmental
Environmental
• •Disposal
Disposal
Studies Have Shown 30% to 50% Cost Reduction Realized
Studies Have Shown 30% to 50% Cost Reduction Realized
Through Equipment or Control System Changes
EXPERIENCE
RELIABILITY
SAFETY
Calculating Total LCC
Calculating Total LCC
LCC =
LCC =
C
C
ic
ic
+
+
C
C
in
in
+ C
+ C
e
e
+ C
+ C
o
o
+ C
+ C
m
m
+ C
+ C
s
s
+
+
C
C
env
env
+
+
C
C
d
d
Whereas…..
LCC = life cycle cost
C
ic= initial costs, purchase price (pump, system, pipe, auxiliary services)
C
in= installation and commissioning cost (including training)
C
e= energy costs (predicted cost for system operation, including pump
driver, controls, and any auxiliary services
C
o= operation costs (labor cost of normal system supervision)
C
m= maintenance and repair costs (routine and predicted repairs)
C
s= down time costs (loss of production)
C
env= environmental costs (contamination from pumped liquid and auxiliary
equipment)
C
d= decommissioning/disposal costs (including restoration of the local
environment and disposal of auxiliary services)
EXPERIENCE
RELIABILITY
SAFETY
C
ic
- Initial Costs:
•
Engineering
•
The Bid process
•
Purchase Order Administration
•
Testing and Inspection
•
Inventory of Spare Parts
•
Training
•
Auxiliary Equipment
Energy Cost
Other Costs
Initial Purchase Price
Maintenance Costs
*According to Hydraulic Institute - “A Typical LCC for an Industrial Pump”
How Northern Saves You….
Because Northern gear pumps are designed for your specific application, the initial cost can be higher than our competitors.
However, the initial purchase price is relatively insignificant to the overall life cycle cost. Our pump performance is extremely predictable and reliable, which equates to less down-time and less
maintenance cost.
How Northern Saves You….
Because Northern gear pumps are designed for your specific application, the initial cost can be higher than our competitors.
However, the initial purchase price is relatively insignificant to the overall life cycle cost. Our pump performance is extremely predictable and reliable, which equates to less down-time and less
maintenance cost.
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
in
– Installation and Commissioning Costs:
•
Foundations – Design, Preparation, Concrete and Reinforcing, etc.
•
Setting and Grouting of Equipment on Foundation
•
Connection of Process Piping
•
Connection of Electrical Wiring and Instrumentation
•
Connection of Auxiliary Systems and Other Utilities
•
Provisions for Flushing or ‘Water Runs’
•
Performance Evaluation at Start-Up
How Northern Saves You….
Every Northern Pump is performance tested, and taken through a controlled break in. This is done to the actual project duty
conditions of the pump. This greatly reduces the likelihood of a delay during the start-up process. Northern Gear Pumps can be
mounted at the factory, or incorporated into a number of different systems, reducing the need to waste critical process time aligning the pump.
How Northern Saves You….
Every Northern Pump is performance tested, and taken through a controlled break in. This is done to the actual project duty
conditions of the pump. This greatly reduces the likelihood of a delay during the start-up process. Northern Gear Pumps can be
mounted at the factory, or incorporated into a number of different systems, reducing the need to waste critical process time aligning the pump.
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
e
– Energy costs:
•
Energy Consumption Often Larger Cost Elements
•
Input Power Calculation Formula:
m p
g
s
H
Q
P
366
.
[kW] (metric)
[hp] (U.S. units)
Whereas…..
P
= Power
Q
= rate of flow, m
s/hr (US gpm)
H
= head, m (ft)
η
p= pump efficiency
η
m= motor efficiency
s.g. = specific gravity
m pg
s
H
Q
P
3960
.
How Northern Saves You….
Most Northern Pumps are at least 85% volumetrically efficient. Less slip past the gears means less energy to run the pump .
We also have access to virtually every brand of electric motor. We only select the most efficient motor for the job!
How Northern Saves You….
Most Northern Pumps are at least 85% volumetrically efficient. Less slip past the gears means less energy to run the pump .
We also have access to virtually every brand of electric motor. We only select the most efficient motor for the job!
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
o
– Operation Costs:
•
Labor Costs Related to the Operation of a Pumping System
•Varies Widely Depending on System the Complexity
•
Obtaining Optimum Working Life Requires Regular Servicing
How Northern Saves You….
Northern Engineers always select the
materials that will offer the best long
term performance. B-10 Bearing life
or the PV value is always reviewed for
every new application.
Many of our pumps last 25-50 years
before they require maintenance!
How Northern Saves You….
Northern Engineers always select the
materials that will offer the best long
term performance. B-10 Bearing life
or the PV value is always reviewed for
every new application.
Many of our pumps last 25-50 years
before they require maintenance!
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
m
– Maintenance and Repair Costs:
•
Multiply Costs per Event by the Number of Events Expected During the
Life Cycle of the Pump
How Northern Saves You….
Northern offers a factory rebuild program which will recondition your pump back to it’s original condition. After a careful disassembly process, the entire pump is inspected to determine parts that need replacement or reconditioning. In nearly all cases, pump components not exposed to wear can be re-used, which saves you time and money.
Every refurbished pump carries a full factory warranty.
How Northern Saves You….
Northern offers a factory rebuild program which will recondition your pump back to it’s original condition. After a careful disassembly process, the entire pump is inspected to determine parts that need replacement or reconditioning. In nearly all cases, pump components not exposed to wear can be re-used, which saves you time and money.
Every refurbished pump carries a full factory warranty.
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
s
– Downtime and Loss of Production Costs:
•
Cost of Unexpected Downtime and Lost Production is a Significant
Item, Can Be Largest in the Total LCC
•
Weigh Cost of Lost Production to Justify Purchase of Spare Pump
Increases Initial Cost, but Decreases Unscheduled Maintenance Costs
How Northern Saves You….
Northern’s skilled manufacturing team can duplicate or replace virtually every pump previously manufactured. With historical drawings and records of all pumps
available for quick reference, it is simple to duplicate any pump. As most parts are manufactured in the Wisconsin facility, pumps can be easily duplicated or
customized to meet your needs. Building a spare or replacement is quick, an also reduces downtime.
How Northern Saves You….
Northern’s skilled manufacturing team can duplicate or replace virtually every pump previously manufactured. With historical drawings and records of all pumps
available for quick reference, it is simple to duplicate any pump. As most parts are manufactured in the Wisconsin facility, pumps can be easily duplicated or
customized to meet your needs. Building a spare or replacement is quick, an also reduces downtime.
LCC Components
EXPERIENCE
RELIABILITY
SAFETY
C
env
– Environmental Costs:
•
Contaminant Disposal Costs Vary Depending on Liquid
C
d
– Decommissioning/Disposal Costs:
•
Disposing Costs Vary Depending on Design
•
With High Disposal Costs, LLC Becomes Sensitive to Useful Life of
Pump
How Northern Saves You….
When your application requires a safe and reliable gear pump, Northern is a logical answer. The quality of Northern precision gear pumps help to prevent leaks and failures.
How Northern Saves You….
When your application requires a safe and reliable gear pump, Northern is a logical answer. The quality of Northern precision gear pumps help to prevent leaks and failures.
