Life Cycle Cost

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Understanding Life Cycle Cost

How your Northern saves you money
®
Reference: Hydraulic Institute (www.pumps.org)

What is 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. • The components of a life cycle cost analysis typically include initial cost, installation and commissioning costs, energy costs, operation costs, maintenance and repair costs, down time costs, environmental costs, and decommissioning and disposal costs. • Some studies have shown that 30% to 50% of the energy consumed by pump systems could be saved through equipment or control system changes.

Calculating the total Life Cycle Cost
LCC = Cic+ Cin+ Ce+ Co+ Cm+ Cs+ Cenv+ Cd
Whereas…..
LCC Cic Cin Ce Co Cm Cs Cenv Cd = = = = = = = = = life cycle cost initial costs, purchase price (pump, system, pipe, auxiliary services) installation and commissioning cost (including training) energy costs (predicted cost for system operation, including pump driver, controls, and any auxiliary services operation costs (labor cost of normal system supervision) maintenance and repair costs (routine and predicted repairs) down time costs (loss of production) environmental costs (contamination from pumped liquid and auxiliary equipment) decommissioning/disposal costs (including restoration of the local environment and disposal of auxiliary services)

Cic - The initial cost usually include the follow items:
– – – – – – – Engineering (e.g. design and drawings, regulatory issues) The bid process Purchase order administration Testing and inspection Inventory of spare parts Training Auxiliary equipment for cooling and sealing water

Energy Cost Other Costs Initial Purchase Price Maintenance Costs *According to Hydraulic Institute - “A Typical LCC for an Industrial Pump”

Money Saving Fact………
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.

Cin – Installation and commissioning costs include:
–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

Money Saving Facts…..…
Every Northern Pump is performance tested, and taken through a controlled break in. This is done in comparison to the actual customer 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. This reduces the need to waste critical process time aligning the pump. This also greatly reduces the risk of misalignment.

Ce – Energy costs:
–Energy consumption is often one of the larger cost elements and may dominate the LCC, especially if pumps run more than 2000 hours per year –The input power calculation formula is:

Q  H  s.g P 366  p  m
P

[kW] (metric)

Q  H  s.g [hp] (U.S. units) 3960  p  m

Whereas….. P Q H ηp ηm s.g.

= = = = = =

Power rate of flow, ms/hr (US gpm) head, m (ft) pump efficiency motor efficiency specific gravity

Money Saving Facts…..
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!

Co – Operation costs:
– Operation costs are labor costs related to the operation of a pumping system. – These will vary widely depending on the...
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