Why Total Cost of Ownership Matters
April 17, 2020
“Hi, my name is Frank Kovacs and I’m the President and CEO of Shannon Global Energy Solutions. We manufacture removable, reusable blanket systems and our core focus is engineering reusable solutions for a sustainable planet.
I was approached by a key food and beverage company a few years back that had an interest in knowing the measured lifecycle cost on the product. At the time I didn’t know the answer, went back and did some research, and I found some compelling measures.
This particular fitting was a 10-inch gate valve. I looked at lifecycle cost using conventional material that was installed and removed after the first service to the fitting. So the insulation was removed after the first installation and the measured performance of that material had a negative impact of over $10,000.
Applying a removable, reusable blanket system over a 15-year lifecycle allowed us to reap a benefit that was greater than $10,000. Think also from the perspective of how many components there are on steam systems. Some systems that we walk into we may find as many as 1,600 or 2,500 fittings. What’s the impact of a single component? What’s the impact of 500 components?
Thank you. If you are looking for more information, contact us today.”