Economic Evaluation Example

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VENTURI REPLACEMENT
MARKET OVERVIEW
Venturi Replacement
1.
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Market Overview
Application Specifics
System Schematics
Comparison Examples
Ground Rules
Major Competitors
Best Approach to Attack the Market
Economic Evaluation Spreadsheet
MARKET OVERVIEW
Vacuum Venturis
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Used for many years
OEM applications
Simple, small, remote vacuum uses
Compact, simple, cheap, no moving parts
Just plug into your existing compressed
air line
MARKET OVERVIEW
Vacuum Venturis
Air Compressor
Motive Air for Venturi
Very Simple … If you stop here
Venturis have Huge Disadvantages
•End Users – Operating Costs
•OEM using Venturis will look weak every time
•Many Vacuum Venturi applications benefit
greatly by replacement with vacuum pumps
•We’ll show you when, how and why vacuum
pumps or blowers are the best choice
APPLICATION SPECIFICS
Venturi Operating Principle
1.
Motive air from
compressor
2.
Entrained air is pulled
through nozzles
3.
Suction created at
opening of each stage
4.
Creating vacuum at
system inlet
VISUALIZATION TECHNIQUE
(using Frank’s new “Dream” Ferrari)
•Going warp speed in a 35 mph zone, Led Zeppelin splitting
his eardrums, Frank cracks the front windows
•Cigar smoke from his illegal Cuban cigar is sucked out the
window, tangled in the flowing hair of his buxom, blond bimbo
Now ……
Back to Reality!
VISUALIZATION TECHNIQUE
Key Point . . .
•Massive air flow is required to develop a
small amount of suction flow and vacuum
•The Process is extremely inefficient
Rietschle Success Story
Application: Vacuum for packing machines
Replace:
27 Gast rotary vane pumps (24”HgV)
Under Consideration:
A.
PIAB Venturis
B.
Duplex 20 HP liquid Ring vacuum system
C.
Rietschle CLFEH-501 duplex pump system (with
two 20 HP motors) or a Rietschle VCEH-160
triplex system with three 10 HP motors).
Rietschle Success Story (cont.)
•User’s sister company used PIAB venturis
•Recommended replacement of high-maintenance Gast vacuum
pumps with PIAB ejectors
•Customer was receptive to an economic analysis
•Analysis uncovered huge energy and cost savings
•Rietschle secured a significant system order
•Rietschle system saved approximately:
•
40% power compared to the individual Gast pumps
•
Over 90% in power compared to the PIAB venturis, and
provided more than double the air flow to their system!
Economic Evaluation Example
Given Conditions:
End User has (25) PIAB model MLD-100 vacuum venturis
operating on his existing machines. He requires 18”HgV on his
machines for pick & place operations. Current installed
capacity is 62.5 scfm (PIAB literature shows that each MLD100 can deliver 2.5 scfm @ 18 “HgV. 2.5 X 25 = 62.5 scfm).
Customer Requirements:
Customer wants to add additional capacity and will need an
additional 25 scfm. His current air compressor is fully loaded,
so if he uses vacuum venturis, he will need to add additional air
compressor capacity.
Economic Evaluation Example (cont.)
1. Based on PIAB literature, customer will need to add 10
additional venturis to obtain 25 scfm (25 scfm  2.5
scfm/venturi @ 18”HgV = 10 venturis).
2. Calculate air compressor airflow to operate 35 venturis
(25 existing venturis plus 10 new venturis). Per
published PIAB literature, each venturi will require
approximately 13 scfm of air compressor capacity. 13 X
35 = 455 SCFM.
3. Estimate power consumption to produce 455 scfm @
80 psig. Either obtain actual compressor and motor size
from a vendor, or use 4.0 scfm/HP as an estimate. 455 
4.2 = 108.3 bhp.
Economic Evaluation Example (cont.)
4. Estimate cost of power. Assuming a power cost of
$0.10/kw-hr, and 5840 hours per year operation (two
shifts, 365 days per year), annual operating costs of the
above system would be:
$/Yr
= HP X .746kW/HP X $/kW-Hr X Hrs/Yr
= 108.3 X .746 X $0.10 X 5840
= $42,917 per year operating costs for Venturis.
Economic Evaluation Example (cont.)
Select Rietschle vacuum pump to do the job.
a.
Convert SCFM to ACFM. [87.5 scfm @ 18”HgV (11.92”HgA)]
ACFM = SCFM X (29.92 / “HgA)
ACFM = 87.5 X (29.92 / 11.92)
ACFM = 219.6 ACFM
b.
For 18”HgV, you could use a duplex VTB-250, dry running rotary vane
vacuum system. Each pump has a capacity of 150 ACFM @ 18”HgV and
uses a 10 HP motor. Two pumps running together will actually provide much
more than the required capacity. By providing a central system with air
receiver and vacuum switches, one pump would probably handle the
requirement most of the time. For the purposes of this example, be
“generous” and assume both 10 HP motors need to run continuously, for a
total power consumption of 20 HP. (Actual power consumption would be
closer to 10 Hp than 20 HP).
Economic Evaluation Example (cont.)
6.
Calculate Power Cost for Rietschle System
$/Yr
= HP X .746kW/HP X $/kW-Hr X Hrs/Yr
= 20 X .746 X $0.10 X 5840
= $8,713 per year operating costs for Rietschle System.
Annual Operating Cost Savings Using a Rietschle System
$42,917 - $8,713 = $38,484 Cost Savings
This does not even include any capital cost evaluations. If you include
the cost of the initial compressor system (usually much larger and more costly
than a Rietschle Vacuum System), the evaluation often looks even better.
Payback can sometimes be a matter of months in energy savings alone!
Rules of Thumb
•Typical motive air pressures are from 60 – 100 psig
•Compressors provide about 4.2 scfm per HP @ 100 psig
•Compressor systems can be ball-parked at $350/HP
•Depending on vacuum level, Rietschle vacuum pumps can be
from 3 – 10 times more efficient than vacuum venturis
•Venturis are reasonable for very small, isolated vacuum
requirements if excess compressor capacity already exists
•Venturis are a terrible choice for high capacity requirements
Rules of Thumb
•Venturis become less efficient at higher vacuum levels
•Venturis are one of the most inefficient ways to produce
vacuum
•Efficiency drops as motive air pressure decreases
•Paybacks can often be just a few months, especially when
higher vacuum levels are required
•Vacuum systems are usually smaller and less costly than
the compressors required to operate venturis
Major Competitors
•PIAB
•Parker Hannifen
•Thomas
•Gast
•SMC
Venturi Advantages / Disadvantages
Venturi Advantages
Venturi Disadvantages
Low initial cost
Ultra-high operating costs
Compact (ignoring compressor)
Low efficiency
Simple operation (if you ignore
compressor system)
Requires separate compressor,
piping, valves, traps, regulators
Good for very small demands
Poor choice for higher demands
Compressors must be oversized
to insure proper operation
Rietschle Advantages
• Huge energy and cost savings
• Very rapid return on investment
• No separate compressor system to
purchase and install
• Systems can run multiple machines
• On-Line standby capacity
• OEM’s can promote higher efficiency vs.
their competition
Best Approach to Attack the Market
Sell to the OEM
• Sell him on efficiency and operating cost
benefits to his customers
• Sell Users on concept of “Total System Cost”
• Additional sales & profit
• Vacuum pumps do a better job – more flexible
• Customer can free up existing air compressors
• The “KEY” is a good economic evaluation
Best Approach to Attack the Market
Sell to the End User
• Efficiency and operating costs
• Look for multiple machines and/or large requirements
• Look for higher vacuum levels, where venturis are very
inefficient
• Ask how he is doing on compressor capacity
• Customer can free up existing air compressors
• Ask about future expansions and new machinery
• The “KEY” is a good economic evaluation
Vacuum Pump vs. Venturi Comparison
September 1, 2000
Evaluation done for:
OEM Packaging Company
Mr. John J. Designer
Evaluation done by:
Rietschle Inc.
Joe Salesman
Venturi Selection:
PIAB Model ABC
Hours Operation:
Electrical Cost:
Maximum Vacuum Level:
Capacity Required:
Motive Air Required:
Motive Air Pressure:
Compressor HP:
5840
$0.10
18
87.5
455
75
108.3
Compressor Cost:
Venturi Cost:
Total Equipment Cost:
$37,917
$5,000
$42,917
Hrs / Yr
$/kW-Hr
"HgV
SCFM
SCFM
PSIG
HP
From Customer
From Customer
From Customer
From Customer
(obtain from Venturi literature)
(obtain from Venturi literature)
Estimate at 4.2 scfm of motive air per hp
Estimate Price at $350 per Compressor HP
From Customer or Venturi Dealer
Rietschle Selection:
ACFM
Pressure Required
Motor Size
No. of Motors
Total Operating HP
Total Equipment Cost
VTB-250 Duplex System (based on acfm and pressure below)
219.6
11.92
10
2
20
$17,500
ACFM
"Hg Absolute
HP
Qty
HP
Calculated
Calculated
Total Continuous Power Required (Qty X Motor Size)
Cost Comparison
Rietschle
Venturis
Rietschle Savings
Annual Operating Cost
$8,713
$47,197
$38,484
Total Equipment Cost
$17,500
$42,917
1 Year Total Cost*
$26,213
$90,114
$63,900
3 Year Total Cost*
$43,640
$184,507
$140,868
5 Year Total Cost*
$61,066
$278,901
$217,835
10 Year Total Cost*
$104,633
$514,886
$410,253
* Capital cost plus operating costs over specified time period
All Items shown in Red are Calculated fields.
Items in Blue require input.
Summary
•A Golden Opportunity
•We have a lot to offer
•Both OEM’s and End Users Benefit
•Economic Evaluation is the Key
•Use the Excel Spreadsheet to make it easy
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