Case Study

CASE STUDY: LIFE CYCLE COST ANALYSIS OF PUMP FOR MUNICIPAL PLANT A new pump for a pumping station is specified by Mr. Clayton Lyell, a municipal planning engineer. Mr. Lyell collects the following estimates for the new pump: Amount Construction and installation cost (1 year from design) Preventive maintenance cycle per year Pump operating hours per year Preventive maintenance action MTBF MTTR Power demand Power cost $220,000 2190 hr 6570 hr 40 hr 3285 hr 120 hr 60 kW $0.10/kW Mr. Lyell estimates design cost as $40,000. Maintenance labor for a three-person crew costs $125 per hour. In addition to the consumption charge for power, there is a monthly demand charge of $690 for power. Find the undiscounted cash-flow total over a ten-year span of pump operation. What is the discounted total LCC assuming a 10% interest rate? Sketch the discounted cash flow for the lifetime of the pump. (Hints: The LCC analysis begins at year zero, where design costs are assumed to be instanta- neously bunched. Assume that all maintenance costs are collected at the start of the year. There are no labor costs for operation of the pump. There is no effect of inflation for this analysis. For the sketch, have the x axis as years and the y axis as discounted dollars, and smooth the values as if con tinuous cash flow were expected. Do not include any consideration for pump replacement.)