LIFE CYCLE COST

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

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All of us use LCC

• UTILITY
• MAINTENANCE
• INSURANCE
• PERFORMANCE
• RESELL VALUE

• PRICE
• FUEL ECONOMY
• SAFETY
• DURABILITY

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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

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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

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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

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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
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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

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APPENDIXES

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

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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
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-Other yearly costs
7
-
Sum of yearly costs
(34567)
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MANUAL CALCULATION ....cont.
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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.

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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

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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)

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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

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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

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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

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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

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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

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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

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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

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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

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THANKYOU! QA