Why are the Life Cycle Costs of a Pump Important
In the majority of cases, energy consumption is the largest cost in the life cycle costs
of a pump system, where pumps often run more than 2000 hours per year.
Actually, around 20% of the world’s electrical energy consumption is used for pump systems.
In this section, we will examine the components that constitute a pump’s life cycle costs (LCC).
We will define LCC, identify the factors to consider when calculating it,
and provide a method for its calculation.
Finally, we will demonstrate the concept of life cycle cost with a practical example.
What are the “Life Cycle Costs” of a Pump?
The life cycle costs of a pump are an expression of how much it costs to purchase, install, operate, maintain and dispose of a pump during its entire lifetime.
An excellent reference work has been carried out by the Hydraulic Institute, Europump and
the US Department of Energy, in which they propose a methodology to calculate the LCC of pumps (and other equipments). It is designed to help companies to minimise the waste and maximise the energy efficiency of systems including pumps.
Discover it at by clicking on the button just here under.
Components that Constitute a Pump’s LCC
- Initial costs, purchase price
- Installation and commissioning costs
- Energy costs
- Operating costs (labor)
- Environmental costs
- Maintenance costs
- Downtime costs
- Decommissioning and disposal costs
The LCC is equal to the sum of all of the costs stated in our list here above.
1. Initial Costs & Purchase Price
The initial costs of a pump system includes all equipments and accessories necessary to operate the system, e.g. pumps, frequency converters, control panels and transmitters.
Important to take into consideration is that trade-offs between initial costs, energy and maintenance cots do exist. In may cases more expensive components have both a longer life time and/or a lower energy consumption that rather inexpensive componenents.
2. Installation & Commissioning Costs
Typically, installation and commissioning costs include teh following costs:
- Pump installation
- Foundation
- Connection of electrical wiring and instrumentation
- Installation, connection and set-up of transmitters, frequency converters, etc.
- Commissioning evaluation at start-up
As was the case for initial costs, it is important to check the trad-off options. In connection with pumps with integrated frequency converter, many of the components are already integrated in the pump. Therefore, this kind of pump is often subject to higher initial costs but lower installation and commissioning costs.
3. Energy Costs
Recent technological advances have significantly reduced energy consumption by improving pump hydraulic performance and motor efficiency.
The use of adaptive technologies, such as converters, ensures that the pump operates as the system needs it.
This not only optimises energy use, but also maintains a more stable pressure at the pump discharge.
4. Operating Costs
Operating costs include labor expenses associated with the operation of a pumping system. Typically, these labor costs are minimal. Modern surveillance equipment allows for the integration of pump systems into computer networks, thereby keeping operating costs low.
5. Environment Costs
Environmental costs include the disposal of parts and contamination from the pumped fluid. The contribution of the environmental factor to the life cycle cost of a pumping system in industry is usually modest.
6. Maintenance and Repair Costs
Maintenance and repair costs encompass all expenses related to the upkeep and repair of the pump system, including labour, spare parts, transportation, and cleaning.
To achieve optimal pump lifespan and prevent breakdowns, implementing a preventive maintenance strategy is essential.
7. Downtime Costs, Loss of Production Costs
Downtime costs are extremely important in production processes involving pumping systems due to the high expense associated with halting production, even briefly.
To mitigate this risk, it is advisable to install a standby pump, even if a single pump meets the required capacity. This standby pump can maintain continuous production in the event of an unexpected system failure.
A standby pump makes sure that production continues in case of pump breakdown.
8. Decommissioning and Disposal Costs
Depending on the pump manufacturer, decommissioning and disposal costs of a pump system are generally speaking rather low compared to the other costs.
Therefore, this cost is seldom taken into consideration
Practical Example of Life Cycle Costs Calculation
The life cycle costs of a pump system are made up of the summation of all the above-mentionned components over the system’s lifetime. Typically, the lifetime is said to be in the range of 10 to 20 years.
Practically, the life cycle costs are calculated by a simplified formula with fewer elements to consider — but also the more important ones:
LCC = Initial Costs (1) + Costs of Energy (3) + Cost of Maintenance (6) over the lifetime
SPS Pumps is at your Disposal
SPS Pumps is the ideal partner for industry. We offer unrivalled technical support and in-depth knowledge of centrifugal pumps, as well as other types of pump.
Our expertise guarantees you reliable and efficient solutions tailored to your needs.
We also have a very wide range of spare parts in stock.
With SPS Pumps, you have a trusted partner committed to optimising your fluid handling systems.
Call us at +32 2 657 23 53 or send us an e-mail at info@sps-pumps.com.
The content of this webpage is inspired by and sourced from the Grundfos Pump Handbook, including the accompanying charts.
