By Gary Nichols, PE, Jacobs Engineering Group
In the previous articles in this series, (More about cost estimating process analyzer projects) we explored the lifetime costs of analyzer projects from the standpoint of savings through adequate scope development and estimating the fully vetted scope. Additionally, we spent time on safety and ergonomics for analyzer systems and analyzer shelters, especially from the standpoint of the analyzer technician who must service the analyzer systems daily. However, these activities are largely addressed in the engineering and capital construction phases of the analyzer project.
In this article, we shall explore how the ongoing operation and maintenance phase of the analyzer system is anticipated during project engineering and construction. We re-emphasize the distinction between analyzer systems and “conventional” process instrumentation like pressure, temperature, flow and level. While the latter are relatively simple field devices, analyzer systems are often complex integrations of chemical, electronic and mechanical technology. From this, we can conclude that analyzer systems generally require a higher level of technical knowledge from technicians and supervision.
Earlier in this series of articles, we approached reliability as encompassing the entire analyzer project from concept development to disposal, rather than as a mathematical exercise that would reduce the concept of “reliability” to calculations of mean time between failure (MTBF), root cause analysis (RCA) for failures, failure mode effects analysis (FMEA) and optimum levels of personnel and parts inventory. Although all of the aforementioned are important in reliability, it would be misleading to limit “reliability” to these activities.
Therefore, during the remainder of this article, we shall discuss how life-cycle costs associated with the ongoing operations and maintenance phase of analyzer systems projects can be addressed during capital engineering and construction phases of the project. This is important because certain costs related to operations and maintenance can be capitalized, along with the hardware associated with the analyzer project; others must be expensed. This distinction is important to the folks who must account for the analyzer system asset during its lifetime, and sometimes it also is important to receiving approval for the project. We note that “capitalized” refers to project costs that affect cash flow during the year(s) in which the analyzer system is engineered, constructed, and started up, whereas “expensed” items affect cash flow each year during the life of the system.