Minimize capital costs for purchasing and installing pump capital costs for purchasing and installing piping system. Since the purchase price for pumps is typically less than 10% of the total lifecycle cost, an lcc calculation can serve as a tool to better understand the total cost over the products life time. Life cycle cost lcc is an important technique for evaluating the total cost of ownership between mutually exclusive alternatives. This paper traces the development of the life cycle costing lcc technique in the united states and classifies documented lcc literature by both model type and application. The cost of unexpected downtime and lost production is a very significant item in the total lcc and can rival the energy costs and replacement parts costs in its impact. Example one 20hp pump rated at 1250gpm at 40 ft tdh this is an example of a system that has extreme variation in flow requirements system system oper cycle oper cycle op. Life cycle cost analysis of water networks vermike. Life cycle cost lcc analysis takes into account all pumps related costs from purchasing and until utilization. A guide to lcc analysis for pumping systems describes essential pumping system components and shows you, stepbystep, the considerations necessary to specify, design. Life cycle costing lcc, by definition, refers to an analysis technique which encom passes all costs associated with a product from its inception to its disposal. Purpose life cycle costing lcc is an important economic analysis used in the selection of alternatives that impact both pending and future costs. C in is the conventional cost related to manufacturing, labor, overheads, etc.
Life cycle cost and energy consumption behavior of. Issue 1 life cycle costing is not yet considered to be a critical component of spp. Life cycle cost calculation models for buildings jutta schade 1 department of civil, mining and environmental engineering lulea university of technology, lulea, sweden abstract most commonly, production cost is the main cost factor in construction and is often set to the minimum, which does not necessarily improve the lifetime performance of. Total life cycle costs estimated costs for the elements that comprise the total lcc must be aggregated to enable comparison of the designs under consideration.
The costs and values included in a life cycle costing exercise 5. The analyst has to estimate the life cycle costs of each alternative option for each building element. Beyond the purchase price calculating the total lifecycle. A guide to lcc analysis for pumping systems is the result of a collaboration between the hydraulic institute, europump, and the us. The resource consumption cost and external environmental cost per unit of mwh power. A low life cycle cost centrifugal pump will have hydraulic efficiency close to the theoretical maximum, thus minimising energy costs, identified as the largest single component cost. From life cycle cost analysis of submersible pumps it is clear that energy cost component is the major cost component of life cycle cost analysis that is almost more than 60% of the total cost.
Vehicle life cycle tends to follow the economic concept of marginal. Life cycle cost analysis for pumping systems when used as a comparison tool between possible design or overhaul alternatives, life cycle cost lcc analysis reveals the most cost effective solution. When the next cycle begins, efficiency returns to its initial value since the impeller is free from solid objects fig b. Energy modeling software and developing lifecycle cost analysis. Centrifugal pumps are for low pressures and high flow rates. The industrys most complete and uptodate life cycle cost guide for pumping systems. Cost flows are created to express the economic impacts and these flows are treated like emissions.
September 2006 page viii recent developments have seen the introduction of durable, high efficiency, deep well pumps which are improving the performance concerns of the past. The estimation of the life cycle costs itself is a rather complex exercise to be applied manually, especially at the detailed design stage. Lcc analysis is a convenient and transparent method for evaluation of different methods of pump system optimisation. The lifecycle cost analysis provides the present value pv of annual cost and the life cycle cost, and it compares the accumulated cash flow curves of the sixteen models. It compares initial investment options and identifies the least cost alternatives for a twenty year period. Other costs maintenance costs typical life cycle costs for a mediumsized industrial pump 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. For this reason, its critical to consider a pumps total lifecyclecost before making this decision. Analyzing the life cycle cost of a centrifugal pump in order to increase its monetary efficiency 87 economics provide business successes.
Efficiency and lifecyclecost calculation pump school. Pump life cycle costs guide europump european association. Life cycle costing is divided into sixstaged process. It can also help to motivate a higher initial investment by showing how fast the investment. There is usually not a single design that meets the design criteria but a number of alternative designs that can be considered as viable solutions. A new impact assessment method needs to be created to calculate the costs over the life cycle. The survey covered 3 sizes of each type of pump operating at i flow rates from 1m3hr to 8m3hr. It is therefore important to accurately determine the current cost of energy, the expected annual energy price escalation for the estimated life, along with the expected maintenance labor and material costs. The life cycle costs associated with the operation of a pump or pump system are determined by. A guide to lcc analysis for pumping systems frenning, lars on. Postacquisition costs environmental externalities recipe method external costs direct costs indirect costs life cycle costing is a methodology where costs of a given asset are considered throughout its life cycle 201424eu art.
The chart below represents a pump s total life cycle cost over a period of 7 years. The life cycle cost of a pumping system is calculated as. Just a small part of a high usage pump s total life cycle cost lcc is its initial purchase price. Save time finding the most efficient pump by simplified life cycle cost analysis.
Since the purchase price for pumps is typically less than 10% of the total life cycle cost, an lcc calculation can serve as a tool to better understand the total cost over the products life time. Feasibility assessment for the replacement of diesel pumps with solar pumps final report. Life cycle cost must be determined by identifying the applicable functions in each phase of the life cycle, costing these functions, applying the appropriate costs by function on a yeartoyear basis and then accumulating the costs over the entire span of the life cycle. Lifecycle costing is a methodology where costs of a given asset are considered throughout its lifecycle 201424eu art. Life cycle costing is a system that tracks and accumulates the actual costs and revenues attributable to cost object from its invention to its abandonment. Pump life cycle costs a guide to lcc analysis for pumping systems. Lcc life cycle cost c ic initial costs, purchase price c in installation and. The above table also includes the number of vehicles in the districts fleet in. Comprehensive and authoritative, hieuropumps pump life cycle costs.
Use the lifecycle cost calculator to quickly estimate the total lifecycle cost of a bowie pump and an alternative pump. A comparative study of pump life cycle costs the author presents a survey of the comparative life cycle costs lcc of 5 pumps, four of which are well known in the paper industry and one which offers mills a cost effective alternative. A guide to lcc analysis for pumping systems executive summary uropump t of e n a guide to lcc analysis for pumping systems office of industrial technologies energy efficiency and renewable energy. Climatespecific lifecycle cost analysis of different. Guidelines for selection, application and operation is intended to assist in understanding the general layout, components, and operation of a typical water treatment plant, and provide the guidance necessary to select pump types and define pump materials to perform effectively, efficiently, and reliably in the. Costs imputed to environmental externalities linked to the product, service or works during its lifecycle, provided their monetary value can be determined and verified. In so doing, they had ask a couple of the largest pump manufacturers how to make pumps last lo. Sensitivity analysis required at discount rates of 4% and 10%. The life cycle cost of a pump system is the total cost of all system components over their lifetime. Life cycle costing involves tracing cost and revenues on a product by product base over several calendar periods. When next cycle begins, efficiency returns to its initial value since the impeller is free from solid objects fig b. Existing, scroll, magnetic, water background this example lcc study involved a large facility in the hospitality industry and compared. Efficiency and life cycle cost calculation beyond the purchase price most consumers have a good understanding of the total cost of ownership. Lcc was originally developed as a formal analysis tool by the us department of defense.
After purchasing a car or home or appliance, they realize that with the initial purchase price come the added costs of maintenance, taxes or fees, repair parts, and energy. The existing reciprocating compressor chiller without compressor, ahu or pump vfds. This guide is the result of collaboration between the hydraulic institute, europump and the us department of energys office of industrial technologies oit. The high efficiency of the flygt n pump is sustained over time due to its selfcleaning ability, keeping energy costs to a minimum fig. Feasibility assessment for the replacement of diesel water. Figure 1 depicts a generic cost estimating process that aligns with the gao process, with fewer steps. This life cycle costing tool has been developed to assist asset managers in decision making based on performing a systematic assessment of the life cycle costs of selected water and wastewater assets. Infusion pumps total product life cycle guidance for industry and fda staff december 2014. Lifecycle costing an overview sciencedirect topics. The first method is very similar to a life cycle assessment approach. The emissions with high environmental cost were coal, so2, cod, and boiler ash.
Life cycle cost analysis is a structured method of determining the entire cost of a structure, product, or component over its expected useful life by adding the cost of operating, maintaining, and using it to the purchase price. A guide to lcc analysis for pumping systems executive summary uropump t of e n a guide. University of zimbabwe, department of mechanical engineering, p. A life cycle cost analysis involves the analysis of the costs of a system or a component over its entire life span. Whole of life costing the concepts of life cycle costing or whole of life costing have been well understood for many years 1, 2 and have been practiced by a many companies worldwide who are. Life cycle costing methodology is for cost accounting of a product over its lifetime. Life cycle cost of pump systems cycle stop valves, inc. Definition, objectives and benefits of life cycle costing lcc 2. Nowadays, an inverter can be used to monitor the power consumption and condition of a pump drive.
Life cycle analysis lca does not account for economic aspects, and such analysis should therefore be considered together with a life cycle cost analysis lcc, 8 which takes into account the costs of investment, energy, maintenance, and dumping the final waste product throughout the lifetime of a plant. It has now been successfully applied in the industrial and consumer segments. How to calculate life cycle cost and payback times lowara. Equipment lifecycle cost analysis lcca is typically used as one component of the equipment fleet management process and allows the fleet manager to make repair,equipment replacement, and retention decisions on the basis of a given piece of equipments economic life. Use this calculator to quickly estimate the total life cycle cost for one or more pumps. Decisions made during the design and construction phases of a project can have a lasting impact on the cost of operation of the facility.
Pdf life cycle cost analysis of inverterdriven pumps. Cex is the potential cost for environmental, health, and societal impacts fthenakis and alsema, 2006. Life cycle costs lcc for wastewater pumping systems xylem. Life cycle assessment and external environmental cost. Issue 2 making a decision on the basis of lcc may make it more expensive upfront. Simply input your data including initial pump costs, installation costs and annual recurring costs such as maintenance. The lifecycle cost includes the system capital cost, energy cost, system maintenance and replacement cost over a 20year of life span. The gao cost estimation guidebook 2 depicts a detailed, thorough methodology for completing a life cycle cost estimate. Whole life and life cycle costing view case studies. They are used to compare the economic efficiency of various technical designs. Life cycle costing analysis lcca or lcc for short is the most accurate way to increase your buildings project savings by comparing different design alternatives. Life cycle cost c lc consists of internal cost c in and external cost c ex.
Pump life cycle costs australian pump industry association. The lifecycle cost of any piece of equipment is the total lifetime. The general concept of a life cycle cost is not new. Issue 3 a general appreciation for lcc is critical to change the procurement mindset from the best value for moneyto the best value across the asset life cycle. Comprehensive and authoritative, hieuropumps pump life cycle. The process of implementing a life cycle costing exercise 6. The cost is discussed in the comparison with diesel pumps below. The best way to do this is to tabulate each item and its value. Over a typical lifetime of a building, the operational costs are likely to be four to five times greater than the construction cost. This means that a poor decision can haunt a user for many years.
A guide to lcc analysis for pumping systems the industrys most complete and uptodate life cycle cost guide for pumping systems. Life cycle cost analysis lcca is a projection of initial and ongoing costs of ownership or leasing and operations for a facility or site over its useful life. Lcc is increased by its high consumption of replacement tubes. The lcc equation is determined in accordance with the guidelines of europump and the hydraulic institute. In each case lcc was calculated for operation at spe cific pressures from 5 to 100 bar. Through lcc one seeks to minimize the cost of obtaining a cer tain level of output. A guide to lcc analysis for pumping systems executive summary uropump t of e n a guide to lcc analysis for pumping systems. Optimizing total cost over system life cycle optimization model pumping system design by selecting two components, pump size and pipe diameter, based on their impact on the system life cycle. Direct costs indirect costs life cycle costing is a methodology where costs of a given asset are considered throughout its life cycle 201424eu art. Life cycle costs also see lcc are the total costs incurred throughout the service life of a pump system. With these abilities, the inverter provides a way to optimize pump drive. Pump station and rising mains maintenance costs are the same for both options 20 yr life cycle cost period with a 7% discount rate.
The life cycle costs of each option might consist of seveal cost items. Lifecycle concepts the process of lifecycle costing lcc fundamentally involves. The engineer orchestrating the discussion explained that they were trying to figure out how to make pumps last longer. Executive order 123 requires government agencies to use life. Lifecycle cost study of a geothermal heat pump system. The factors affecting the investment life of a project 3. What is life cycle costing life cycle costing lcc is a methodology that enables you to incorporate costs and benefits that occur over the entire life cycle of a product into your procurement decisions rather than considering the initial capital cost of a product only costs and benefits.
Life cycle costs and other direct costs can be defined as the total cost throughout its life including planning, design, procurement and support costs of the assets owned or used. Life cycle costs lcc for wastewater pumping systems. Life cycle costing in sustainable public procurement. A procedure for sizing pump pipe systems with regard to minimising life cycle costs manageable on excel spreadsheets 1tawanda hove and 2tawanda mushiri 1lecturer and chairman. Organizations with a matured procurement division do not purchase pumps based on their initial purchase and installation costs. Lifecycle cost analysis life cycle cost analysis lcca an economic analysis tool useful in comparing the relative economic merits of competing construction and rehabilitation design alternatives for a single project. The calculator will generate an analysis of the total life cycle costs. For example, if the time frame of a study is 30 years and a component of a mechanical system e. International journal of mechanical and production engineering, issn. Pdf life cycle cost analysis of inverterdriven pumps researchgate.
Pump users and industry leaders have increased the emphasis on reducing the life cycle cost lcc of industrial pumps. An asset4 can be any item that has a value to an organisation over time. Lcca is used to determine the relative economic cost of various alternatives so they can be compared. An economic examination of alternative allocation of capital resources that considers all significant costs of ownership over the economic life of the alternatives and considers the cost of the capital. Terminology commonly used with regard to life cycle cost analysis.
Approach on life cycle costing lcc and its benefits. Whole life costs should be integrated at each stage in cost plan development. The lcc economic model provides better assessment of longterm cost effectiveness of projects than can be obtained with only first costs decisions. Other elements, such as the life time costs of down time. Benefits measured in bca are typically those associated with the desired results of the project i. At grundfos product center you can find a pump life cycle cost calculator to help you do this quickly and easily, and make sure you choose the right pump. By applying pump drive life cycle cost analysis lcca, the most critical factors affecting life cycle costs can be determined. Instead, they focus on the total life cycle cost of a pump, which is five times greater than the initial and installation costs. As opposed to more commonly used roibased calculations, lcc is conducted based on longterm costs and savings, keeping in mind the fact that they are interconnected. In order to meet the demands of the 21st century utility application the. Solution study lifecyclecost study a c floodedchiller. Together, they have a significant impact on life cycle costs.