ROI - Electronic Controls - Dresser-Rand

ROI - Electronic Controls
The following equation has been developed for you to use as a tool to evaluate the net gain of this upgrade.
This will allow you to verify the cost and benefit of applying this upgrade to your steam turbine, before
making an investment.
Below the equation is an example to familiarize yourself with the data that is needed to plug into the
equation. Also included, when necessary, are the assumptions that were used in the example and questions
that need to be answered.
The following are the basic assumptions used in the upgrade examples:
1. Steam Value - $5.00 / 1,000#
2. Single Stages - Based on 250HP @ 200PSIG - D&S - 15PSIG TSR = 17.02#/HP/Hr
3. Multistage - Based on 2,000HP @ 600PSIG - 750F - 4inHga TSR = 5.7#/HP/Hr Multivalve is based
on 10,000HP
4. Installation Cost - $1000 / Day, 10 Hours / Day
5. Process Value - $100,000 / Day, $5,000 / Hour
6. Operation Time - 3 years/24,000 Hours
Basic Equation
(A) (B) (C) (D) (E)
Original Equipment: Price + Installation + Delivery + Operation + Maintenance
(-) Product Upgrade: Price + Installation + Delivery + Operation + Maintenance
= Benefit (cost savings derived from performing the product upgrade)
A. Sell price for the original component or for the upgrade, including any necessary engineering
B. Installation cost for the original piece or the product upgrade
C. Time cost from order placement until delivery of the product
D. Operating benefit or cost of the product upgrade and/or the original component
E. Maintenance cost or savings
Why Purchase
Greater responsiveness
More accurate speed control
Greater reliability
Reduced maintenance
Assumptions: Single stage turbine with a TG-13 as the original governor being upgraded to a Woodward
505 or a TriSen 310. With the TG-13, the operator must visit the turbine one hour per week and there will be
one unplanned governor failure. The electronic governor would gain .5% in efficiency, due to more accurate
speed control.

(A) (B) (C) (D) (E)
Original Controls - $500 + $500 + 0 + $3,000 + $15,600= $19,600
Product Upgrade - $20,000 + $1,000 + 0 + ($2,552) + 0 = $18,448
$1,248 Net savings in three years
A: Woodward replacement program price
D: $3,000 = 1 outage/year x 3 years x $1,000/loss
($2,552) = The .5% efficiency improvement
E: $15,600 = Time saved for not having to check on the turbine every shift, or 1 hour x 156 weeks x $100/hr.