Calculating the cost of ownership
Published by Callum O'Reilly,
All industries calculate the total cost of ownership, particularly when they plan new projects or evaluate unit maintenance costs. Unit by unit, they evaluate equipment, seeking the lowest lifetime cost. The challenge is to realistically and reliably apply the concept to different processes, industries and equipment.
Thinking of a valve as an investment rather than a cost changes perspectives. This article discusses how to calculate the total cost of valve ownership, specifically when it comes to isolation valves. The process entails considering the cost of equipment acquisition, maintenance, repair and replacement, all during a specified time.
Steps to take
The first step is to define isolation valve failures and consider the following risks:
- Leaks through the stem create fugitive environmental emissions.
- Internal leaks through the seats of a closed valve. These leaks degrade process safety, availability and efficiency.
- Valve locking or stroke issues, mainly on emergency shutdown valves (ESDVs) and blowdown valves (BDVs). If a valve that isolates a process does not move, the consequences can be catastrophic.
Next, it is important to evaluate the total cost of ownership through the following five steps:
Define the time range
To fully analyse the economics of a valve purchase, the use of two operating windows or scheduled plant shutdowns is recommended.
Identify the valves to analyse
For simplicity, no more than four valves are recommended at one time. Valves that have some relationship to each other should be chosen, enabling you to fully understand their operational effect on the plant…
Written by Alejandro Plazas, ValvTechnologies, Latin America.
This article was originally published in the February 2022 issue of Hydrocarbon Engineering magazine. To read the full article, sign in here or register for a free trial subscription.
Read the article online at: https://www.hydrocarbonengineering.com/special-reports/08022022/calculating-the-cost-of-ownership/
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