reduced cost of ownership · doug nordstrom . some basic facts ... case study results nessi gen 1 =...
TRANSCRIPT
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© 2007 Swagelok Company. Swagelok confidential. For internal use only.
What Does NeSSI Bring to Market?
Reduced Cost of Ownership CPAC, November 10th, 2011
Doug Nordstrom
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Some Basic Facts
• Initial NeSSI products were launched to the market about 8 years ago
• Sales started slowly… why?
NeSSI Sales
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Initial NeSSI Roadblocks
1. New technology is difficult to understand the flow path 2. Smaller flow paths are not suitable for liquid 3. Component cost
=
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Some Basic Facts
NeSSI sales became strong through poor economies… why? • Total cost of ownership is being evaluated and realized • NeSSI’s value justifies cost increase very quickly
NeSSI Sales
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Objective Analyze cost of ownership of two technologies as compared
to conventional tubing systems. – NeSSI Gen 1 – NeSSI Gen 2
Analysis on three “PARTS”: 1. Components 2. Procurement 3. Ownership
Six NeSSI Gen 1 customer evaluations over a 12 month period Four NeSSI Gen 2 customer evaluation All systems were on-line analyzers in refineries or petrochem plants Systems ranged in size from 11 to 48 components
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Analysis 1 - Savings with NeSSI Gen 1
Conventional Modular (NeSSI Gen 1)
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Value Aspects of NeSSI Gen 1
Part 1: Value of Components How does NeSSI Gen 1 component cost compare to
conventional?
# of Components
Cos
t per
Com
pone
nt
Conventional NeSSI Gen 1
100%
15%
Case Study Results
NeSSI Gen 1 = 27% higher in Component Cost
5 50
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Value Aspects of NeSSI Gen 1
Part 2: Value of “Procurement” What is the savings in NeSSI Gen 1 BEFORE the system is
installed in a plant? • Engineering • Drafting • Assembly
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The New Swagelok NeSSI software
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Schematic layout design
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Schematic layout design
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Schematic layout design
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Schematic layout design
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Real View option with BOM
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Calculations of Characteristics • Flow • Delta Pressure • Cooling (JT) • Internal Volume • Time delay
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Outputs
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Outputs
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Project output
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MPC Configurator / Software • Save design and Re-design time with Swagelok software
• Which Provides you:
– Schematic Layout design – Bill of Material – Drawing (AutoCAD/ Solidworks) – Flow Calculation – Delta pressure calculation – Internal volume – Time delay – ….
www.swagelok.com
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Value Aspects of NeSSI Gen 1
Part 2: Value of “Procurement” What is the savings in NeSSI Gen 1 BEFORE the system is
installed in a plant? • Engineering • Drafting • Assembly
Case Study Results
NeSSI Gen 1 = 48% lower in design cost and 86% lower
in drafting cost
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Part 2: Value of “Procurement”
What is the savings in NeSSI Gen 1 BEFORE the system is installed in a plant?
• Engineering • Drafting • Assembly
Value Aspects of NeSSI Gen 1
Case Study Results
NeSSI Gen 1 = 74% lower in assembly cost
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Value Aspects of NeSSI Gen 1
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 1 DURING its
installation? • Maintenance • Space and Heating • Sample system volume
Case Study Results
NeSSI Gen 1 = 76% lower in maintenance cost
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Value Aspects of NeSSI Gen 1
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 1 DURING its
installation? • Maintenance • Space and Heating • Sample system volume
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700 x 700
380 x 150
(Dimensions in mm)
Case Study Results
NeSSI Gen 1 = 72% lower in heating and
cabinet cost
Value Aspects of NeSSI Gen 1
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Value Aspects of NeSSI Gen 1
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 1 DURING its
installation? • Maintenance • Space and Heating • Sample system volume
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Value Aspects of NeSSI Gen 1
• Volume of NeSSI system averages 64% less than conventional
• Advantage in response time or sample value? Up to the user!
– If flowmeters are both set equal, then the value is in response time – If NeSSI flowmeter is set 1/3 of conventional flowmeter, response
time remains same, but sample value is reduced!
Case Study Results
NeSSI Gen 1 = 39% lower in sample flow
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NeSSI Gen 1 Results
Total System Cost
$0
$5,000$10,000
$15,000$20,000
$25,000
$30,000$35,000
$40,000
0 1 2 3 4 5 6Year
Run
ning
Cos
t Tot
al
Conventional NeSSI Gen 1
$0
$5,000$10,000
0
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Analysis 2 - Savings with NeSSI Gen 2
Conventional Modular (NeSSI Gen 2)
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Value Aspects of NeSSI Gen 2
Part 1: Value of Components NeSSI Gen 2 systems control and digitally communicate: • Pressure • Temperature • Flow • Valve state
Case Study Results
NeSSI Gen 2 = 82% higher in component cost
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Value Aspects of NeSSI Gen 2
Part 2: Value of “Procurement” What is the cost comparison of NeSSI Gen 2 BEFORE the
system is installed in a plant? • Engineering • Drafting • Assembly
Case Study Results
NeSSI Gen 2 = 52% higher in engineering cost and
86% lower in drafting cost (= NeSSI Gen 1)
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Value Aspects of NeSSI Gen 2
Part 2: Value of “Procurement” What is the cost comparison of NeSSI Gen 2 BEFORE the
system is installed in a plant? • Engineering • Drafting • Assembly
Case Study Results
NeSSI Gen 2 = 26% lower in assembly cost
*** As compared to 76% reduction for Gen 1
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Value Aspects of NeSSI Gen 2
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 2 DURING its
installation? • Maintenance • Space and Heating • Sample system volume
Case Study Results
NeSSI Gen 2 = 81% lower in maintenance cost
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Value Aspects of NeSSI Gen 2
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 2 DURING its
installation? • Maintenance • Space and Heating • Sample system volume
Case Study Results
NeSSI Gen 2 = 72% lower in heating cost and 39% lower
in sample flow
(= NeSSI Gen 1)
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Value Aspects of NeSSI Gen 2
Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 2 DURING its
installation? • Maintenance • Space and Heating • Sample system volume • Operator Efficiency
Case Study Results
NeSSI Gen 2 = 45% lower in operator cost
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NeSSI Gen 1 and Gen 2 Results
Total System Cost
$0
$10,000$20,000
$30,000$40,000
$50,000
$60,000$70,000
$80,000
0 1 2 3 4 5 6Year
Run
ning
Cos
t Tot
al
Conventional NeSSI Gen 1 NeSSI Gen 2
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Evaluation Conclusions
1. Cost of NeSSI Gen 1 is less than Conventional BEFORE it is installed – during the procurement stage
2. Cost of NeSSI Gen 2 is less than Conventional within a year
3. Long term cost of Gen 2 is least of the three due to the significant reduction in operator cost
4. Long term cost of Conventional is the highest of the three Total System Cost
$0
$10,000$20,000
$30,000$40,000
$50,000
$60,000$70,000
$80,000
0 1 2 3 4 5 6Year
Run
ning
Cos
t Tot
al
Conventional NeSSI Gen 1 NeSSI Gen 2
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Thank you for your attention!