07-11-2014, 12:53 PM
Abstracts: In today’s world of fast and high advancement in technologies people pay less attention towards some old but important observations that were in high demand before. In case of industries where centrifugal pump is being used, the industry basically pays more attention on purchasing cost rather than over all life cycle cost. The life cycle cost (LCC) is basically analysis works towards finding the lowest long term cost of ownership rather than simply cheapest first cost .Here usually the longest long term cost of ownership is the view point of the investor and simply cheapest first cost is the view point of project management. Roles and responsibilities for preparing the life cycle cost details are described for petrochemical and refining applications. Life cycle costs are all costs expected during the life of an item over some finite study period. This means costs associated with acquisition and ownership of a system over its full life must be estimated and timed for the year of the expenditure. The summation of all costs from project inception to disposal of assets must be described in terms of the time value of money, which is the driver, for knowing how much money will be spent in each time slot. In today’s time the respective industry basically give more importance to the purchase cost only, totally neglecting the overall life cycle costs that play a very important role on the efficient and profitable working of a centrifugal pump. Here we are analyzing the life cycle cost of a centrifugal pump in affiliation with one of the premier leading refining industry i.e. INDIAN OIL CORPORATION LTD (IOCL). The analysis of life cycle cost helps tremendously in indicating how the monetary efficiency can get increased. The monetary efficiency is the most important aspect considered by any industry because the each and every industry wants to gain it. The basis of life cycle cost is on probability because perfect prediction in case of particularly huge industries is not only lethargic but also is somewhat difficult to achieve. This probability that determines life cycle cost in particularly huge industries can vary for a minute value and not a large value i.e. only minor changes can be found out and not large changes, this shows that the probability that is needed to be done should be done perfectly keeping all the aspects in the mind. In the first half of the project, establishment of increase in efficiency of the pump by taking into consideration the LCC of the pump instead of just the initial acquisition cost.In this half, we take into consideration the energy factor which lay unhindered in the previous semester. A possible solution to this is to employ Variable Frequency Drive (VFD) so that the usage of the energy can be altered as per the requirements.