Pump System Life Cycle Cost Reduction

The primary objective of life cycle costing is to evaluate and/or optimize product life cost while satisfying specified performance, safety, reliability, accessibility
maintainability, and other requirements. Pumping systems account for an estimated 25%-50% of the energy usage in many industrial plants, and perhaps 20% of the world’s electric energy demand. Centrifugal pumps rank first in failure incidents
and maintenance costs. That is why centrifugal pumps in critical applications are installed in identical pairs, one serving as the operating, the other one serving as the standby or spare pump. Despite these statistics, many pump purchase decisions
are still made solely on the basis of lowest initial purchase and installation cost. The notion exists that, if a cheap pump doesn’t perform well, it can always be
upgraded. While this may be true in those pumps that suffer from installation errors or component defects, it is not true for pumps that suffer from fundamental design
compromises. Moreover, these decisions seem to disregard that initial purchase price is generally only a small part of pump life cycle cost in high usage applications.
Market conditions, short-term financial considerations, and organizational barriers are to blame for this shortsighted approach.

LCC = Cic + Cin + Ce + Co + Cm + Cdt + Cenv + Cd
where:
LCC = Life Cycle Cost
Cic = Initial Cost, purchase price (pump, system,
pipe, auxiliary services)
Cin = Installation and commissioning cost
Ce = Energy costs (pump, driver & auxiliary services)
Co = Operation costs
Cm = Maintenance and repair costs
Cdt = Down time costs
Cenv = Environmental costs
Cd = Decommissioning and/or disposal costs