Maintenance cost

There can be an element of maintenance costs that is fixed and an element which is variable. Fixed maintenance costs cover routine maintenance such as regular maintenance on safety valves which must be carried out irrespective of the rate of production. There also can be an element of maintenance costs which is variable. This arises from the fact that certain items of equipment can need more maintenance as the production rate increases. Also, royalties which cover the cost of purchasing another company s process technology may have different bases. Royalties may be a variable cost, since they can sometimes be paid in proportion to the rate of production. Alternatively, the royalty might be a single-sum payment at the beginning of the project. In this case, the single-sum payment will become part of the project s capital investment. As such, it will be included in the annual capital repayment, and this becomes part of the fixed cost. 

Maintenance costs depend on whether processing fluids are solids on the one hand or gas and liquid on the other. Solids handling tends to increase maintenance costs. Highly corrosive process fluids increase maintenance costs. Average maintenance costs tend to be around 6 percent of the flxed capital investment. ... 

Some variables often have dependencies, such as reservoir porosity and permeability (a positive correlation) or the capital cost of a specific equipment item and its lifetime maintenance cost (a negative correlation). We can test the linear dependency of two variables (say x and y) by calculating the covariance between the two variables (o ) and the correlation coefficient (r) ... 

Increasingly, maintenance engineers think in terms of the performance and maintenance of equipment over the whole life of the field. This is often at the centre of the decision on capex-opex trade-offs for example spending higher capex on a more reliable piece of equipment in anticipation of less maintenance costs later in the life of the equipment. 

Maintenance costs account for a large fraction of the total operating expenditure (opex) of a project. Because of the bath tub curve mentioned above, maintenance costs typically increase as the facilities age just when the production and hence revenues enter into decline. The measurement and control of opex often becomes a key issue during the producing lifetime of the field as discussed in Section 14.0. However, the problem should be anticipated when writing the FDP. 

When estimating the operating and maintenance costs for various options, it is recommended that the actual activities which are anticipated are specified and costed. This will run into the detail of frequency and duration of maintenance activities such as inspection, overhaul, painting. This technique allows a much more realistic estimate of opex to be made, rather than relying on the traditional method of estimating opex based on a percentage of capex. The benefits of this activity based costing are further discussed in Section 13.0 and 14.0. 

It is worth noting that typically personnel and logistics represent 30% to 50% of operating costs while maintenance costs represent 20% to 40% of operating costs. These are particular areas in which cost control and reduction should be focused. This may mean reviewing the operations and maintenance philosophies discussed in Section 11.0, to check whether they are being applied, and whether they need to be updated. 

Make maintenance planning more flexible, by providing, wherever possible, viable alternatives to unplanned shutdowns and to immediate component replace or repair actions. Increased flexibility of maintenance planning, by conditionally running under surveillance components with potential or incipient stmctural integrity problems, means improved plant availability, reduced energy replacement and maintenance costs. 

Life cycle cost analysis is the proper tool for evaluation of alternative systems (11,12). The total cost of a system, including energy cost, maintenance cost, interest, cash flow, equipment replacement and/or salvage value, taxes, inflation, and energy cost escalation, can be estimated over the useflE life of each alternative system. A Hst of life cycle cost items which may be considered for each system is presented in Tables 3 and 4. Reference 14 presents a cash flow analysis which also includes factors such as energy cost escalation. 

The primary advantages of this filter are its simple design and low maintenance costs. The main disadvantage is the difficulty of handling very fast-filtering materials on a large scale. Areas up to 93 m are available. 

Historically, internal scrapers or paddles were used in some designs, and loose rails were used in others to break up any caking material which formed. The nature of these designs mechanically limited the furnaces to relatively small sizes producing about 3000 t/yr. High maintenance costs were also involved. 

Plant investment and maintenance costs are relatively high for a new iodine plant in the United States or in Japan because of the deep weUs required for brine production and disposal as weU as the corrosive nature of the plant streams. The principal materials cost is for chlorine and for sulfur dioxide, although in the United States the additives used for the brines, such as scale inhibitors and bactericides, also have a considerable influence on costs. 

Fuel costs are taken to be 1.00/GJ ( 1.05/MBtu) the escalation and interest rates are 6.5% and 10%, respectively and the factor used for calculating levelized fuel and operating and maintenance cost is 2.004. 

Maintenance costs influence the bottom line of every balance sheet. As a result, maintenance managers can improve the entire faciHty by helping make sure that the planning and design of new constmction and renovation projects takes place with maintenance in mind (1). 

In the early years of reactor development, electricity from nuclear sources was expected to be much cheaper than that from other sources. Whereas nuclear fuel cost is low, the operating and maintenance costs of a nuclear faciHty are high. Thus on average, electric power from coal and nuclear costs about the same. 

Three types of computer control systems are commonly used for pilot-plant instmmentation. The first is a centralized system, usually based on a minicomputer or occasionally a mainframe. These systems have large storage capacities, substantial memories, and much associated equipment. They typically control all the pilot plants in an area or faciUty. Centralized systems are economical if a large number of units are involved but are becoming less common due to their high installation and maintenance costs as well as the limitation that any failure of the central system shuts down all pilot plants involved. 

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