LIFE CYCLE COSTS, WHAT ARE THEY?3rd Jun 2020
What are life cycle costs?
Life Cycle Cost or LCC analysis is a management tool that can help companies minimize waste and maximize energy efficiency. This can be for many applications, not just pumping systems. To analyse Lifecycle Costs we break down all the individual elements of a pumps cost over its life. We can also see how making simple changes can lead to a far greater improvement in plant efficiency. As well as reduced running costs and a reduced carbon footprint.
Normally, the biggest surprise when seeing a pump Life Cycle Cost broken down is what? The initial purchase price of the pump is a MERE 10% of the overall lifetime cost. When at the design stage, squeezing project budgets are a very short-sighted view. This can considerably impact the overall running costs. For example, the smaller the pipe and fitting diameters, the lower the cost of acquisition and installation. But on the flip side, smaller diameter pipes will require more power consumed by the pump to achieve the same duty. Therefore, the short-term capital saving of the pipework will soon by eclipsed by the higher ongoing energy consumption costs of the pump. Remembering that pumps can account for up to FIFTY PERCENT of all the energy consumed at an industrial plant. The initial procurement and installation costs are only 17% of the overall lifetime costs.
Through Life cycle costs, we can identify that potentially investing more on initial cost of the most suitable pump and system design. You then dwarf your initial purchase price with savings in energy consumption over the pumps life.