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1 Optimized cost of ownership See all the hidden costs without paying any ABB Title Lorem Ipsum dolor sit Possible Subtitle

2 When choosing an electric motor look behind the obvious. Which one is more expensive to own, an electric motor that costs 1,000 $, or one with a price tag of 1,500 $? The purchase price won t tell the whole truth. To see the real cost of any electric motor, you have to look beyond the purchasing price. The calculation is not difficult to make but is certainly worth doing. The number you get is the total cost of ownership for the motor; i.e. the true price that you are paying. Cost of ownership Purchase Cost of running Cost of not running 2 ABB Motors and Generators Optimized cost of ownership

3 Purchase price < 1% of total costs Capital cost of acquiring a new motor does not exceed 3% of the total life cycle costs of the motor (Machine Monitor, survey of 6000 motors). Cost of running 35 45% of total costs Cost of running is basically the energy costs that the motor consumes per year. The energy price and annual running hours effecting to the cost are more or less fixed, and therefore cost of running is optimized by motor efficiency. The more the motor runs, the more the efficiency level counts. Cost of not running 55 65% of total costs The cost of unplanned production stops in a year caused through the failure of a motor. Depending on industry, this cost can ruin the energy savings of a year in few hours. All data in this infographics is based on ABB s experience and long cooperation with process industry customers. Example: a typical motor in oil and gas industry 110 kw motor example A motor in oil and gas industry Output 110 kw Purchase price 13,600 $ Efficiency level 94.5% kw cost for user kwh cost for user 0.11 $ Running hours in process industry 8,400 h/year Lifetime of a motor 20 years Cost of running 110 x 8,400 hours x 0.11$ x 20 years / 94.5 = 2,151,111$ Number of outage 1 Hours/outage 0,5 Unplanned break cost 220,200 $ per hour Cost of not running 20 years x 1 x 0.50 x 220,200 $ = 2,200,200 $ Cost of ownership: + + = 13,600 + (116,4 x 8,400 x 20 x 0.11/94.5) + (220,000 x 20 x 1 x 0.5) = 13, ,151, ,200,000 = 4,364,711 Ratio showing the value of the purchase price compared to the total cost of ownership: 13,600 $ Cost of ownership = ratio = ,364,711 $ Optimized cost of ownership Motors and Generators ABB 3

4 Optimize Cost of Ownership. Optimize the cost of running Choosing the most expensive motor does not guarantee anything, not even choosing the most energy-efficient one. What you need is the most optimal motor for your application. With ABB s comprehensive motor selection and on-line tools you can be sure that you find one and get one. Energy efficiency. The comprehensive range of ABB motors meets meets the relevant standards and directives both for IEC and NEMA motors and fulfills the requirements of global MEPS. Dimensioning. With it s wide product range ABB offers an electrical motor optimal for every requirement and situation. Energy appraisal offering is consulting service that helps quickly find the potential for energy and CO2 savings in fan, pump and compressor applications. ABB s complete motor map. ABB offers the most comprehensive selection of electric motors for various industries, applications and all global MEPS. The Optimizer is an easy-to-use on-line tool that gives you the optimal motor choices for any MEPS, including all technical documentations. You ll find the Optimizer at The tool is also available for the Ipad. ABB s complete product offering. ABB offers the most comprehensive selection of electric motors for various industries, applications and all global MEPS, as well as a complete product offering of generators and mechanical power transmission products. 4 ABB Motors and Generators Optimized cost of ownership

5 Minimize the cost of not running When a motor stops, costs start running, on many levels, and the cost of repairing the motor is probably the smallest one. The bigger cost is due to lost production, lost know how and in worst case even lost reputation. ABB Global service network is build to minimize your cost of not running during the entire lifecycle of motor. The idea is simple: Extend the mean time between failures to it s maximum, and cut the recovery time and cost to its minimum. The service itself is much more sophisticated, not complicated. Predictive maintenance. ABB offers a comprehensive suite of diagnostic and condition monitoring services: ABB LEAP is developed to assess the expected lifetime of the stator winding insulation in motors and generators. ABB MACHsense P offers a comprehensive analysis of electromagnetic and mechanical faults in motors like rotor winding defects, installation problems and bearing defects. ABB MACHsense-R is a remote service that continuously monitors key parameters related to the condition of the cage rotor, bearings of motors and generators, and it can also address temperature issues. Preventive maintenance eliminates disruptions of production, ensures the faster start-up, enhanced lifetime availability and reliability. It is based on planned maintenance schedule and ABB certified engineers to execute the work at the site together with maintenance kits selected based on the decades of experience. ABB s service network offers the world class on-site or when necessary workshop repair as well. Emergency field service resources and globally local spares availability guarantee the fast production resume. Spare parts right when you need them: Our efficient online order processing and tracking system guarantee the availability and minimize your downtime. Individual components, tailored packages and maintenance kits are tuned by tens of years of experience Consultancy. How do voltage unbalances affect the motor performance? Will the transients in the supply network damage the motor s windings? Are the electrical and mechanical maintenance personnel adequately trained? ABB s engineering and consulting services will help to assess these risks that are inherently present at customer site and give the solutions to mitigate them with controlled costs. Optimized cost of ownership Motors and Generators ABB 5

6 What really counts in your industry? Chemical, oil and gas Metal and mining Power utilities Cost of ownership motor s purchase price in relation to other lifetime costs (110 kw motor) Average number of outages per year due to motor failure (>100 kw) Average plant downtime cost (per hour of downtime) $ 220,000 $ 80,000 $ 50,000 Running cost (20 years) USD one 110 kw motor 2,230,000 2,230,000 2,230,000 Number of days of continuos running to consume the motors purchase price in electricity costs All data in this infographics is based on ABB s experience and long cooperation with process industry customers. 6 ABB Motors and Generators Optimized cost of ownership

7 We provide motors, generators and mechanical power transmission products, services and expertise to save energy and improve customers processes over the total life cycle of our products, and beyond. Optimized cost of ownership Motors and Generators ABB 7

8 Contact us For more information contact your local ABB representative or visit: We reserve the right to make technical changes or modify the contents of this document without prior notice. With regard to purchase orders, the agreed particulars shall prevail. ABB Ltd does not accept any responsibility whatsoever for potential errors or possible lack of information in this document. We reserve all rights in this document and in the subject matter and illustrations contained herein. Any reproduction, disclosure to third parties or utilization of its contents in whole or in part is forbidden without prior written consent of ABB Ltd. 9AKK EN Copyright 2012 ABB. All rights reserved. Specifications subject to change without notice.

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