LIFE CYCLE COST
Optimizing Pump Systems
Dr. Gunnar Hovstadius
Dir. Technology ITT FT
All of us use LCC

UTILITY

MAINTENANCE
FUEL
ECONOMY

INSURANCE

SAFETY

PERFORMANCE

DURABILITY

RESELL VALUE


PRICE
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
world’s electric energy demands

Energy and maintenance costs during
the life of a pump system are usually
more than10 times its purchase price
…





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
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
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.
Installation
9%
Pump
Environmental
14%
7%
Downtime
9%
Energy
32%
Operating
9%
Maintenance
20%
CONTENT
Chapter
1
2
3
4
5
6
7
8
9
Executive Summary
Introduction
Life Cycle Cost
Pumping System Design
Analyzing Existing Pumping Systems
Examples of LCC Analysis
Effective Procurement using LCC
Recommendations
References
Glossary
Appendix A - E
APPENDIXES
A
B
C
D
E
System Curves
Pumping Output and System Control
Pump Efficiencies
Case History - Cost Savings
Electrical Drivers and Transmissions
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
Weighted average power x Average Operating
hours/ yr
- Operating cost/year:
3
- Average Maintenance cost (routine
maintenance/year):
- Down time cost/year:
5
-Other yearly costs :
7
-Sum of yearly costs : (3+4+5+6+7)
4
6
8
MANUAL CALCULATION ....cont.
- Average Maintenance cost (routine
maintenance/year):
- Down time cost/year:
5
-Other yearly costs :
7
6
8
-Sum of yearly costs: (3+4+5+6+7)
- Present Value of yearly costs:
(use discount factor, df, see figure 7.2)
- Decommissioning/disposal cost (final year):
Dfx8=9
df=………..
10
- Present Value of final year costs:
(use factor Cp/Cn, see figure 7.1)
Cp/Cnx10=11
Cp/Cn=……….
Result:
Present LCC-value(1+2+9+11):
of which present energy cost is:
(3xdf)
and routine maintenance cost is:
(5xdf)
No.
Industry/
Application
Outline of Method
of Cost Saving
Type of
Saving
Payback
Period
Life Cycle Cost
Saving
EURO/USD
Years
Full Cost
1
Building Services/
Air Conditioning
Comparison of 3
installations:
- 1 large pump with bypass
P.V
Energy
Cost
-
-
- 1 pump - throttle valve
controlled
-
47,800
29,300
- 3 pumps variable speed
-
70,400
38.300
2
Paper/
Water Circulation
Pump
Install 2 pumps for the 2
different duty cycle
conditions.
Energy Cost
0.5
711,900
437,000
3
Chemical Processing/
Condensate Export
Pump
Trimmed impeller to match
actual duty requirements.
Energy and
maintenance.
0.06
107,000
82,200
3.1
8,600
5,900
Followed by new smaller
motor.
SYSTEMS, not

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.
pumps
PUMPS and SYSTEM SIZING
Energy 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 OVERSIZED - SAFETY FACTORS
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)
ENERGY

Efficient pumps & efficient systems =>
Specific Energy ( Wh/l pumped fluid )
Calculate specific energy for the system
and compare different solutions and
different components
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
LCC Comparison - Example
10 Year Pump Life: :
800 gpm @ 90 ft
 Pump / Motor Price
BHP
80% eff 60% eff
16.95 kw 22.60 kw
$ 2,500
2,500
( with 30 hp motor)


Installation
Energy Costs*
500
33,900
500
45,200
$ 0.05/ KwHr x 4000 hrs/yr x 10 yrs

Maintenance
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
Parts (seals, bearings, shaft, impeller) -



Operating Savings $ 19,000
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
•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
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

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
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%