How to calculate life-cycle costs for pumping systems

When making a major equipment investment, it is easy to focus on short-term gains. However, the real winners tend to be those who invest in equipment that delivers long-term savings. Learn in a new white paper how to calculate life-cycle costs and payback times for pumping systems.

Pumping systems account for almost 20 percent of the world’s electrical energy demand and anything from 25 to 50 percent of the energy used in industrial plant operations. Although pumps are typically purchased as individual components, they tend to operate as part of a system. The amount of energy used by a system depends on the pump and installation design, and the way the system is operated.

Upfront costs versus long-term costs

Due to the limited budgets under which most construction projects are forced to operate, a great deal of importance is often given to upfront costs, while little attention is paid to future costs. However, project managers and policy-makers could benefit from thinking more strategically about operating and maintaining their systems. With the right planning, they can ensure the sustainability of future budgets and infrastructure management.

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Life Cycle Cost (LCC) Analysis is a management tool that helps companies minimize waste and maximize energy efficiency in their systems. A complete understanding of all the factors that influence the total cost of a system throughout its lifespan makes it possible to dramatically reduce energy, operational and maintenance costs. This can lead to major savings as well as environmental benefits.

Where to start looking for savings

Existing systems generally provide greater savings opportunities for LCC methods than new systems for two reasons. First, there at least 20 times more pump systems in the installed base compared with the number built each year. Second, many existing systems include pumps or controls that have not been optimized.

For most facilities, the main factors that influence LCC are energy and maintenance costs. It is therefore important to determine the current cost of energy and projected price increases, as well as anticipated maintenance costs.

How life-cycle costs are calculated for pumping systems

In a new white paper, Xylem has outlined the various factors that must be taken into account when calculating life-cycle costs. These include the initial investment, the cost of installation and commissioning, energy costs, operating costs and costs related to maintenance and repair.

They also include downtime and loss of production, environmental costs and, ultimately, the cost of decommissioning and disposal. Finally, the white paper uses an example to illustrate how crucial system design is to minimizing LCC and maximizing efficiency.

Download the white paper here.

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