Evaluating LTCO Improves the Selection Process for High Performance Flow Control and Treatment Equipment

High performance (HP) flow control and treatment equipment tends to be purchased and sold using the same process as general purpose equipment. Price and delivery are prioritized.  Evaluation of the lowest total cost of ownership (LTCO) is not elevated to the highest priority. This failure permeates the industry even to the point that bonuses are paid on performance in the past year rather than the past 10 years. The company that buys the lowest priced HP products does better this year but over time it will be a costly choice. The company that sells the lowest priced HP product can book profits in the current year but subsequent expenses and loss of reputation will affect future profits.

This condition needs to be corrected.  The first step is to identify the high performance products that need to be evaluated separately. There are three main criteria:

·       Severe service

·       Critical service

·       Unique Service

Severe service:  Corrosion, pressure, temperature, process operating fluctuations are all conditions that qualify an application as severe service.

Critical service:  Safety, product purity, continuous operation, and product toxicity are criteria of critical service.

Unique Service:  The distinction is often made between an engineered product versus an off the shelf or standard product.  In any case, the decision making for unique service products needs to be made with prioritization of the LTCO.

McIlvaine Company is facilitating this identification of high performance needs by revising its market reports on air and water pollution control systems, filters, pumps, valves and instruments to segment the high performance and general purpose opportunities.  For each industry high performance needs are further segmented by use e.g. air or water intakes, cooling, stack gas or wastewater treatment, and process.  Process, in turn, is segmented by function e.g. evaporation, reaction, mixing, size separation, etc. This segmentation has been completed for pumps and valves.  Now the 50,000 forecasts by product, industry, country and year can be further segmented by high performance or general purpose.

The second step is to make the LTCO evaluation process less costly and more accurate.  It is easy to select the lowest price or most widely used product. There is no easy way to evaluate the LTCO for each option.  Purchasers often hire consultants to help them evaluate the LTCO.  The problem is that with the world’s information doubling every few years, it becomes increasingly difficult to take advantage of the knowledge at reasonable cost.

One approach taken by Arcelor Mittal has been to emphasize global purchasing.  Most of its 200 mines and steel plants have the same high performance needs.  Recently, it purchased dust collection systems with one purchase order for plants in Europe and South America.  The LTCO evaluation cost per system was greatly reduced.

McIlvaine is helping purchasers determine the LTCO with services such as:

44I Power Plant Air Quality Decisions (Power Plant Decisions Orchard)

59D Gas Turbine and Combined Cycle Decisions

For more information on the flow control and treatment market reports click on:
http://home.mcilvainecompany.com/index.php/markets

AWWA racks up another success in Chicago

The American Water Works Association annual convention and exhibition utilized the entire west wing of McCormick place this week.  We are still writing our stories from interviews and will report them in our various publications but here are two stories we compiled from our visit with Jason Fues, marketing director of municipal water services with NALClO.

Steel Mill reduces polymer use with Nalco PARETO optimizer

At a customer steel mill facility, the mill’s waste treatment plant was treating wastewater from the steel mill and a Cold Reduced Sheet Mill. The plant consisted of a low lift pumping station, oil skimmers, primary and secondary mixers, scalping tanks, two clarifiers, one thickener and two centrifuges. There is also an oily waste recovery side to the plant which treats oily waste. This plant consists of an API separator, mix tank, DAF, drum filter, sludge roll off box and oil collection tank. Nalco had been working with this steel manufacturer that was looking for more efficient sludge dewatering programs to increase cake solids percentage in sludge disposal parameters. The initial stage of the process was to install one PARETO Optimizer in the sludge line to centrifuge, with solids increasing 9 percent (or 4 percentage points), from 44.5 to 48.6 percent, and ~ 30 percent polymer dose reduction were accomplished.

PARETO Mixing Technology is a patented, custom-engineered approach to feeding technology. Central to the technology offering is the PARETO Optimizer, whose unique design works in combination with custom CFD calculations and an unique understanding of chemistry to ensure that injection into the process stream is achieved efficiently and effectively.

Cooling towers and other processes should consider Chlorine Dioxided

Nalco recommends consideration of chlorine dioxide as a cooling tower disinfectant based on the following comparison.

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

Here are some headlines from the Utility E-Alert.

UTILITY E-ALERT

#1277 – June 17, 2016

Table of Contents

COAL – US

EPA to reduce Regional Haze in Utah

Georgia Power will cease operations at all Coal Ash Ponds within Three Years

Arch Coal files Amended Bankruptcy Plan of Reorganization

COAL – WORLD

Mitsubishi Corporation awarded a Contract for renovation of Taiwan Power Company's Boilers and Environmental Facilities

Bukit Asam’s 5,000 MW Power Plant Projects ‘on Track’

Zimbabwe’s US$2 Billion Power Project resumes after Two Years

Additonal Vinh Tan Power Station Plants for Binh Thuan Province, Vietnam

The 41F Utility E-Alert is issued weekly and covers the coal-fired projects, regulations and other information important to the suppliers. It is $950/yr. but is included in the $3020 42EI Utility Tracking System which has data on every plant and project plus networking directories and many other features.

 HOT TOPIC HOUR (HTH) SCHEDULE

Click here to Register for the Webinars

FGD and Acid Gas Separation - Issue and options for SO₂ and other acid gas separation from coal fired power, cement, steel, and waste incineration plants.     
Click Here to Register

This free webinar will be held at 10:00 a.m. on June 16.  A collaborative format will be used to discuss decision guides on acid gas removal for coal fired power, cement, steel, waste to energy, and glass plants.  The decision guides already prepared on these subjects will be updated and quickly displayed during the meeting. Discussion will revolve around controversial issues. Subscribers to Power Plant Air Quality Decisions and Industrial Air Plants and Projects can access the guides at any time.  End users also have access upon request. Information on new developments is continually solicited.  For questions contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 112. 

LIFO vs. FIFO filter pulsing to maximize acid gas capture - Last sorbent on the cake is first removed. How do we change that to FIFO? Click here to participate in the preliminary analysis.

Direct Sorbent injection is becoming increasingly popular. Much of the acid gas is removed on the cake formed in the pulse jet filter.  It is critical that the unreacted or last in sorbent is not the first out. The LIFO vs FIFO accounting concept may apply.  Input on this subject is solicited from sorbent, dust collector, bag and valve suppliers.  Over the next few months we will assemble an analysis and decision guide on maximizing acid gas capture in the bag filter. A webinar will be scheduled for early Fall to discuss the findings. For more information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com  847-784-0012 ext. 112

Molecular Sieve Switching Valves

Molecular sieves are used to dehydrate gas. The valves used in switching from one sieve bed to another are subject to severe service including zeolite particles and corrosive, hot conditions. There is considerable controversy on the best valve designs and materials choices. Over the next few months we will assemble an analysis and decision guide on this subject. The preliminary analysis is provided at Severe Service Valve Technologies and Markets.  A webinar will be scheduled for early Fall to discuss the findings. For more information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com   847-784-0012 ext. 112. 

Choke Valve Decision Guide and Webinar

McIlvaine is compiling a continually updated Decision Guide for operators of choke valves used in oil and gas and other industries for fluid control. Contaminants such as sand integrated into varying mixtures of water, oil, methane and other gases provide both operational and maintenance challenges. The guide will identify the major applications and then the performance of various designs and various materials for specific conditions. The Guide will be the basis of a recorded discussion to be conducted in early fall 2016.  The guide will be offered free of cost to any end user.  It will also be published in Industrial Valves: World Markets and Strategies.  The wisdom of the industry is sought in order to make this guide the best it can be.   Input is welcomed from any and all sources. White papers, articles and other data to further the discussion would be most helpful. The background information and part of the analysis has been prepared and is displayed at Choke Valve Decision Guide. For more information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com 847-784-0012 ext. 112. 

Details on Webinars

McIlvaine conducts periodic webinars which are in a discussion format and are free of charge to all participants. The displayed material and recordings are free to purchasers of the products and services and by subscription to others.

Format:  50-90 minute recorded discussion using McIlvaine display material. The session will be free of charge to all participants but registration is required.

Approach: There are two types of webinars. One is focused on Markets and directed to suppliers. The other is focused on aiding purchasers make the best Decisions relative to purchases of flow control and treatment equipment and services.

Markets HTH
General overviews of the market including size and major variables will be discussed with heavy emphasis on technology and regulatory drivers. The presentation will be based on the latest information appearing in McIlvaine multi-client reports. Questions and views from both subscribers and non-subscribers are encouraged.

Decisions HTH
McIlvaine has been publishing information systems on pollution control since 1974. Each subject is organized by the pollutant control technology e.g. fabric filter, scrubber etc. There are search capabilities to retrieve information on any application. The newest addition has been slide deck systems displaying the issues and options relative to specific applications.. Coal-fired power, cement, steel, and waste combustion decision slide decks are continually updated.

The continually updated slide decks are displayed on the applicable Decision System.  It is recommended that participants view the slide deck in advance of the session and be prepared with questions and views.

Value to purchasers and specifiers:  Your questions and interests will be prioritized in the discussion. You will get a monthly newsletter and have continuing access to the system and multiple ways to interface in the future along with a networking directory of suppliers.

Value to Suppliers:  You have the opportunity to provide data to be considered at no charge. If you are also a subscriber you will see the summaries in advance and be able to shed light on issues and options not properly covered in the slide deck.  If you are a subscriber you will receive the monthly newsletter and continuing yearly access to the system including networking directories.

44I Power Plant Air Quality Decisions  includes 1ABC, 3ABC, 4ABC, 9ABC decision services but not 2ABC. So those with multiple technologies and at least partial focus on power will find this combination most cost effective. 

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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com