Page 300 - Improving Machinery Reliability

Life Cycle Cost Studies 271
Table 5-6
Assessing the Monetary Value of Pump Upgrading

Pump Population:
Intarest Rate:
Projected MTBF, (1 474)(12)/x
Projected Repairs, x
Repair Costs-Option 1, (5000)(x)
Repair Costs-Option 2, (6700)(x)
5-Year Total w/o Upgrading: $(3,160,000)(5) = $1 5,800,000
5-Year Total with Upgrading: - $1 3,641,200
Straight Savings over 5 Years: = $2,156,700
- $1,646,075
Sawings Based on Present Value:

Table 5-7
Estimating the Economic Justification for ANSI-PLUS Retrofits

Estimatino The Economic Justification For ANSI-Plus Retrofits
Example Plant
I
1. Total number of ANSI pumps installed 417
2. Number of ANSI pumps previously repalred each year, 8ll causes 21 2
3. Average cost of each repair (direct labor, materials, associated costs, overhead) 53,122
4. Number of pumps failing, Month U1, and being retrofitted with ANSI-PLUS parts 18
5. Failure projections of remainder of 2-year conversion period:
97 repairs Month #2
16 repairs Month #3
16 repairs Month #4
16 repairs Month #5
15 repairs Month #6
15 repairs Month #7
14 repairs Month #8
14 repairs Month #9
13 repairs Month (110
13 repairs Month #11
12 repairs Month #12
12 repairs Month #13
12 repairs Month #14
12 repairs Month #15
11 repairs Month X16
11 repairs Month #17
11 repairs Month #18
11 repairs Month #19
10 repairs Month #20
10 repairs Month U21
10 repairs Month 1122
10 repairs Month U23
9 repairs Month U24
and every month thereafter.
Total pump repairs in a 2 year period 308
6. Cost difference, average, for repairing with ANSI-PLUS retrofit instead of
51120
7. Additional maintenance cost outlay for installing ANSI-PLUS retrofit parts instead of
5344,960
116
(Item 3 x Item 8) I 5362,152