reduced cost of ownership · doug nordstrom . some basic facts ... case study results nessi gen 1 =...

© 2007 Swagelok Company. Swagelok confidential. For internal use only.

What Does NeSSI Bring to Market?

Reduced Cost of Ownership CPAC, November 10th, 2011

Doug Nordstrom

Some Basic Facts

• Initial NeSSI products were launched to the market about 8 years ago

• Sales started slowly… why?

NeSSI Sales

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Initial NeSSI Roadblocks

1. New technology is difficult to understand the flow path 2. Smaller flow paths are not suitable for liquid 3. Component cost

=

Some Basic Facts

NeSSI sales became strong through poor economies… why? • Total cost of ownership is being evaluated and realized • NeSSI’s value justifies cost increase very quickly

NeSSI Sales

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Objective Analyze cost of ownership of two technologies as compared

to conventional tubing systems. – NeSSI Gen 1 – NeSSI Gen 2

Analysis on three “PARTS”: 1. Components 2. Procurement 3. Ownership

Six NeSSI Gen 1 customer evaluations over a 12 month period Four NeSSI Gen 2 customer evaluation All systems were on-line analyzers in refineries or petrochem plants Systems ranged in size from 11 to 48 components

Analysis 1 - Savings with NeSSI Gen 1

Conventional Modular (NeSSI Gen 1)

Value Aspects of NeSSI Gen 1

Part 1: Value of Components How does NeSSI Gen 1 component cost compare to

conventional?

# of Components

Cos

t per

Com

pone

nt

Conventional NeSSI Gen 1

100%

15%

Case Study Results

NeSSI Gen 1 = 27% higher in Component Cost

5 50


Part 2: Value of “Procurement” What is the savings in NeSSI Gen 1 BEFORE the system is

installed in a plant? • Engineering • Drafting • Assembly

The New Swagelok NeSSI software

Schematic layout design

Real View option with BOM

Calculations of Characteristics • Flow • Delta Pressure • Cooling (JT) • Internal Volume • Time delay

Outputs

Project output

MPC Configurator / Software • Save design and Re-design time with Swagelok software

• Which Provides you:

– Schematic Layout design – Bill of Material – Drawing (AutoCAD/ Solidworks) – Flow Calculation – Delta pressure calculation – Internal volume – Time delay – ….

www.swagelok.com


Part 2: Value of “Procurement” What is the savings in NeSSI Gen 1 BEFORE the system is

installed in a plant? • Engineering • Drafting • Assembly

Case Study Results

NeSSI Gen 1 = 48% lower in design cost and 86% lower

in drafting cost

Part 2: Value of “Procurement”

What is the savings in NeSSI Gen 1 BEFORE the system is installed in a plant?

• Engineering • Drafting • Assembly


Case Study Results

NeSSI Gen 1 = 74% lower in assembly cost


Part 3: Value of “Ownership” What is the annual savings in NeSSI Gen 1 DURING its

installation? • Maintenance • Space and Heating • Sample system volume

Case Study Results

NeSSI Gen 1 = 76% lower in maintenance cost

700 x 700

380 x 150

(Dimensions in mm)

Case Study Results

NeSSI Gen 1 = 72% lower in heating and

cabinet cost



• Volume of NeSSI system averages 64% less than conventional

• Advantage in response time or sample value? Up to the user!

– If flowmeters are both set equal, then the value is in response time – If NeSSI flowmeter is set 1/3 of conventional flowmeter, response

time remains same, but sample value is reduced!

Case Study Results

NeSSI Gen 1 = 39% lower in sample flow

NeSSI Gen 1 Results

Total System Cost

$0

$5,000$10,000

$15,000$20,000

$25,000

$30,000$35,000

$40,000

0 1 2 3 4 5 6Year

Run

ning

Cos

t Tot

al

Conventional NeSSI Gen 1

$0

$5,000$10,000

0

Analysis 2 - Savings with NeSSI Gen 2

Conventional Modular (NeSSI Gen 2)


Part 1: Value of Components NeSSI Gen 2 systems control and digitally communicate: • Pressure • Temperature • Flow • Valve state

Case Study Results

NeSSI Gen 2 = 82% higher in component cost


Part 2: Value of “Procurement” What is the cost comparison of NeSSI Gen 2 BEFORE the

system is installed in a plant? • Engineering • Drafting • Assembly

Case Study Results

NeSSI Gen 2 = 52% higher in engineering cost and

86% lower in drafting cost (= NeSSI Gen 1)


Part 2: Value of “Procurement” What is the cost comparison of NeSSI Gen 2 BEFORE the

system is installed in a plant? • Engineering • Drafting • Assembly

Case Study Results

NeSSI Gen 2 = 26% lower in assembly cost

*** As compared to 76% reduction for Gen 1




Case Study Results

NeSSI Gen 2 = 81% lower in maintenance cost




Case Study Results

NeSSI Gen 2 = 72% lower in heating cost and 39% lower

in sample flow

(= NeSSI Gen 1)



installation? • Maintenance • Space and Heating • Sample system volume • Operator Efficiency

Case Study Results

NeSSI Gen 2 = 45% lower in operator cost

NeSSI Gen 1 and Gen 2 Results

Total System Cost

$0

$10,000$20,000

$30,000$40,000

$50,000

$60,000$70,000

$80,000

0 1 2 3 4 5 6Year

Run

ning

Cos

t Tot

al

Conventional NeSSI Gen 1 NeSSI Gen 2

Evaluation Conclusions

1. Cost of NeSSI Gen 1 is less than Conventional BEFORE it is installed – during the procurement stage

2. Cost of NeSSI Gen 2 is less than Conventional within a year

3. Long term cost of Gen 2 is least of the three due to the significant reduction in operator cost

4. Long term cost of Conventional is the highest of the three Total System Cost

$0

$10,000$20,000

$30,000$40,000

$50,000

$60,000$70,000

$80,000

0 1 2 3 4 5 6Year

Run

ning

Cos

t Tot

al

Conventional NeSSI Gen 1 NeSSI Gen 2

Thank you for your attention!

reduced cost of ownership · doug nordstrom . some basic facts ... case study results nessi gen 1 =...

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