Life Cycle Cost
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
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