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 $18.00
Amount of Pigment X 2X
1
6

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
 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 $ 18.00
Pigment X 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
CinComponents
Cinst Ce ofCLCC
op Cor 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 Pump Division

Cinst Installation Cost

Grouting Baseplate
Alignment pump train
Connecting main and auxillary piping
Instrumental connections
Electrical connections
Start-up ( Initial)
Commissioning
Training
 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 Pump Division

Centrifugal Pumps
Cop Operational Cost
Man hours required from operators

Cost for routine maintenance

Condition Monitoring

Filter cleaning

Etc.
 Pump Division

Life Cycle Cost

Centrifugal Pumps
Maintenance and Repair Costs
Cor

Cost general overhauls / repairs

Inventory cost spare parts
Maintenance cost depending strategy
Run to failure
Predictive
Preventive
Pro-active Etc.
 Pump Division

Life Cycle Cost

Centrifugal Pumps

Cdt Loss of production cost

Unscheduled Outage costs, due to pump

reliability issues.
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Life Cycle Cost

Centrifugal Pumps

Cc Decontamination Cost

Soil pollution

Disposal remaining pump product

Control for compliance with

environmental legislation.
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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
Pump LCC model Example Overhung
Process pump (SCE)
2. %
3%

0. .8%
2
2.

4%
Removal
6

Q = 605 m3/hr
Purchase
Installation H = 55,8 meter
%
.7
43

Contamination = 81,5%
Energy
Power = 72 kW
%

Operational
.2
44

Maintenance Industry = Petrochemical

4%
0.
 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, Pump Division

Maintenance Programs
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 B
A Pressure Drop

Motor efficiency 90%

0.08 $/kWhr

Rated at 100m^3/hr
Operates at 80 m^3/hr
6000 hr/year
 Pump Division

Life Cycle Cost

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

Pump and System Curves

100 100
System Curve
90 430 mm 90
A&D System Curve
80 impeller B 80
70 70
375 mm
Head m

60 60

Effy %
impeller
50 System Curve 50
40 C 40
30 30
20 20
10 Reduced 10
Speed
0 0
0 20 40 60 80 100 120 140 160
Flow m^3/hr
 Life Cycle Cost Pump Division

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 Comparison

$ Cost (1) Change (2) Trim (3) VFD (4) Repair
Control v/v Impeller Control v/v
Impeller 430 375 430 430
Diameter mm
Pump Head m 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
 Pump Division

LCC LCC Comparison

$ Cost (1) Change (2) Trim (3) VFD (4) Repair
Control v/v Impeller Control v/v
Initial Investment 5000 2250 21500 0
Energy (now) /kWhr 0.08 0.08 0.08 0.08
Power kW 23.1 14.0 11.6 23.1
Operating Hours 6000 6000 6000 6000
Cost of Energy 11,088 6,720 5,568 11,088
Maintenance/year 500 500 1000 500
Repair / 2nd Year 2500 2500 2500 2500
Other yearly costs 0 0 0 4000
Downtime cost / year 0 0 0 0
Environmental cost 0 0 0 0
Disposal Cost / year 0 0 0 0
Life time in years 8 8 8 8
Interest Rate % 8 8 8 8
Inflation Rate % 4 4 4 4
Present LCC value 91,827 59,481 74,313 113,930
 Pump Division

Life Cycle Costs