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LIFE CYCLE COST

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LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT All of us use LCC PRICE FUEL ECONOMY SAFETY DURABILITY UTILITY MAINTENANCE ... – PowerPoint PPT presentation

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Title: LIFE CYCLE COST


1
  • LIFE CYCLE COST
  • Optimizing Pump Systems
  • Dr. Gunnar Hovstadius
  • Dir. Technology ITT FT

2
All of us use LCC
  • UTILITY
  • MAINTENANCE
  • INSURANCE
  • PERFORMANCE
  • RESELL VALUE
  • PRICE
  • FUEL ECONOMY
  • SAFETY
  • DURABILITY

3
Energy Maintenance costs LCC
  • 70 of energy production in industrialised
    countries drive electric motors
  • 70 of electric motors drive pumps, compressors
    and fans
  • Pumped systems account for 20 of the worlds
    electric energy demands
  • Energy and maintenance costs during the life of a
    pump system are usually more than10 times its
    purchase price

4
Pump LCC, the product of and
a spirit of global cooperation
  • 1994 - U.S. DOE invited HI to participate in the
    Motor Challenge Program
  • 1995 - Flygt develops Sewage Lift station DOE
    Energy Showcase in CT
  • 1996 - Europump forms the Enersave committee
  • 1998 - HI and Europump form a joint committee to
    develop LCC guidelines
  • 2000 - Europump-HI Pump Life Cycle Costs-Global
    Best Practices Guideline

5
Hydraulic Institute - Europump
  • Life Cycle Cost (LCC) is the total lifetime
  • cost to purchase, install, maintain, and
  • dispose of that equipment. Costs
  • Initial purchase
  • installation and commissioning
  • energy
  • operating
  • maintenance
  • downtime, loss of production
  • environmental cost
  • decommissioning

6
Cost Components
  • Life Cycle Cost is the total lifetime cost to
    purchase, install, operate, maintain and dispose
    of that equipment.
  • HI/EP Oct. 2000
  • The purchase price is
  • typically less than 15 of
  • the total ownership cost.

Environmental 7
7
CONTENT
  • Chapter
  • Executive Summary
  • Introduction
  • 1 Life Cycle Cost
  • 2 Pumping System Design
  • 3 Analyzing Existing Pumping Systems
  • 4 Examples of LCC Analysis
  • 5 Effective Procurement using LCC
  • 6 Recommendations
  • 7 References
  • 8 Glossary
  • 9 Appendix A - E

8
APPENDIXES
  • A System Curves
  • B Pumping Output and System Control
  • C Pump Efficiencies
  • D Case History - Cost Savings
  • E Electrical Drivers and Transmissions

9
MANUAL CALCULATION CHART
System description
Input
n - Life in years

i - Interest rate,
p - Inflation rate
- Initial investment cost
1
- Installation and commissioning cost
2
- Energy price (present) per kWh
- Weighted average power in kW
- Average Operating hours/year
Energy cost/year (calculated) Energy price x
3
Weighted average power x Average Operating
hours/
yr
- Operating cost/year
4
- Average Maintenance cost (routine
5
maintenance/year)
- Down time cost/year
6
-Other yearly costs
7
-
Sum of yearly costs
(34567)
8
10
MANUAL CALCULATION ....cont.
11
(No Transcript)
12
SYSTEMS, not pumps
  • LCC starts with the SYSTEM.
  • Replacing a 75 efficient pump with a 80
    efficient pump will save almost 7 electricity
    cost
  • BUT if pump systems are incorrectly sized,
    efficient pumps will operate at inefficient
    points
  • 75 of all engineered pump systems are estimated
    to be oversized.

13
PUMPS and SYSTEM SIZINGEnergy to Burn
  • SYSTEM HEAD CALCULATIONS ARE CONSERVATIVE -
    SAFETY FACTORS
  • SINGLE PUMP, CONSTANT SPEED SYSTEMS SIZED FOR MAX
    DUTY
  • STATUTORY RULES IN MUNICIPAL
  • WASTEWATER PUMPING
  • 40 DEG , THREE DAYS OF THE YEAR
  • SYSTEM COMPONENTS ARE OVER-
  • SIZED - SAFETY FACTORS

14
Pumps expensive water heaters
  • Pumps, over-sized for REAL system demands, lead
    to
  • frequent on / off cycling
  • closing of throttling valves
  • RESULT
  • adding friction head to the system,
  • increasing Pump kW (electric power required)

15
ENERGY
  • Efficient pumps efficient systems gt
  • Specific Energy ( Wh/l pumped fluid )
  • Calculate specific energy for the system and
    compare different solutions and different
    components

16
Maintenance
  • Throttled / oversized pumps run outside BEP
  • operate less efficiently,
  • generate radial loads wear faster
  • .whereas
  • Accurately sized pumps and systems
  • reduce maintenance costs
  • increase seal, bearing, shaft life
  • increase MTBF
  • decrease labor maintenance
  • reduce production loss
  • reduce our warranty goodwill costs

17
LCC Comparison - Example
  • 10 Year Pump Life 80 eff 60 eff
  • 800 gpm _at_ 90 ft BHP 16.95 kw 22.60 kw
  • Pump / Motor Price
    2,500 2,500
  • ( with 30 hp motor)
  • Installation 500 500
  • Energy Costs 33,900 45,200
  • 0.05/ KwHr x 4000 hrs/yr x 10 yrs
  • Maintenance
  • Parts (seals, bearings, shaft, impeller) -
    4,000 8,000
  • Labor 5 hrs/10hrs 2,000 4,000
  • Downtime - BI insurance pro-rate 1,200
    1,200
  • Environmental ( 150 x 2/yr and 3/yr) 3,000
    4,500
  • Decommission 650
    650
  • TOTAL LCC Comparison 47,550 66,550
  • Operating Savings 19,000

18
LIFE CYCLE COST Customer Economic value
  • Reducing costs increases competitiveness
  • US Dept. Of Energy estimates 75-122 B KwH per
    year can be saved by optimizing motor driven
    pump systems
  • Savings would be between 4-6 B per year
  • Increase public services without raising public
    taxes and fees
  • Responding to the demands of private operators of
    public services to find system savings

19
LIFE CYCLE COST Environmental Value
  • Global commitment to environmental solutions -
  • Rio Reduce ozone threatening emissions
  • Kyoto - commitment to reduce energy
  • 1 KwHr of electricity produces 600 grams of CO2.
    Saving 75-122B KwH will reduce 45 to 75 Billion
    Kg in CO2

20
PUTTING LCC TO WORK
  • Think systems, not components.
  • Education of
  • System owners, designers, specifiers, purchasers
    and producers
  • Concentrate on system performance, rather than
    component performance
  • Develop system specifications

21
LIFE CYCLE COST
  • ITT Industries EMBRACES LCC AS A TOOL FOR
    SELECTING AN OPTIMAL SOLUTION TO CREATE ECONOMIC
    AND ENVIRONMENTAL VALUE OVER THE LIFE OF A SYSTEM

22
New LCC Focused products/systems from ITT
Industries
  • PumpSmart - advanced electronics and algorithms
    monitor system demands and varies the speed of
    the unit or shuts it down to protect the pump
  • Hydrovar Contol System - converts the pump from a
    constant speed to a variable speed unit
  • N-Pump - revolutionary impeller reduces the
    energy consumption by 30-50
  • Sanitaire - a fine bubble aeration system that
    cuts energy costs by up to 50

23
THANKYOU! QA
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