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
DATE HOT TOPIC HOUR AND DECISION GUIDE SCHEDULE
The opportunity to interact on important issues
TBA
Decision Guide 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
TBA
Decision Guide Molecular Sieve Switching Valves - Which of three designs is best
under each of the varying conditions found? What materials and coatings are
needed?
Click here to participate in the preliminary analysis
TBA
Decision Guide Choke Valves - What designs work best given the sand, water,
pressures and other challenges for surface and sub surface applications?
Click here to participate in the preliminary analysis
July 14, 2016
Markets Desalination -Thermal vs. Membrane; energy recovery, pump, valve,
compressor and chemicals options; power/desalination combinations.
August 25, 2016
Markets Oil, Gas, Refining - Supply and demand; impact on flow control and
treatment products; regional impacts e.g. subsea in North Atlantic vs. shale in
the US vs. Oil Sands in Canada.
TBA
Markets Food - Analysis of 12 separate applications within food and beverage
with analysis of valve, pump, compressor, filter, analyzer and chemical options;
impact of new technologies such as forward osmosis.
TBA
Markets Municipal Wastewater - Quality of pumps, valves, filters, and analyzers
in Chinese and Asian plants; new pollutant challenges; water purification for
reuse.
TBA
Markets Mobile Emissions -Reduction in CO, VOCs, and particulate in fuels, oils,
and air used in on and off road vehicles; impact of RDE and failure of NOx traps
and the crisis in Europe created by the focus on clean diesel.
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.
Applicable Services for Hot Topic Hours**
Pollutant
Industry Fabric Filter
(1ABC) Scrubber
(2ABC) Precipitator
(4ABC) FGD & DeNOx
(3ABC) Air Pollution
Monitoring
(9ABC) Gas
Turbine
Decisions
FGD and Acid Gas
June 16, 2016 Coal X X
Sewage X X
WTE X X
Cement X X
Steel X X
*Included in custom system
** Many of the decision guides also are displayed in the relevant market
reports. Power Plant Air Quality Decisions includes 1ABC, 3ABC, 4ABC, 9ABC
Sponsored Webinars allow suppliers to take advantage of all the valuable
information on their power point presentations. Click here for details
Hot Topic Hour Recordings
See and hear recordings of past Hot Topic Hours (Free for subscribers, $95.00
for non-subscribers)
• Chronological
Order Now!
Free Sponsored Webinars
• Albemarle - Cement MACT
• AMC Power
• Aquatech
• GE - Mercury Capture
• Honeywell
• NVISTA
• Midwesco - Bagfilter Performance Analyzer
• Neundorfer
• Pavilion
• Sick Maihak - Cement MACT
• Tekran Instruments - Cement MACT
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You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com