Imagine the cost of a branded equipment versus a local non-branded item. The moment you hear these works, the first thing that strikes your mind is the Expense you need to put to Buy the Branded product v/s the other one. However, people today are well- informed customers who evaluate various aspects of the product to determine its worth v/s the printed price and in many cases, end up buying the branded equipment despite the initial high cost – reasons attributed to additional features / services / life that is offered by the product that make it above par from the other non-branded competitions in the segment.
The above evaluation is explained as in layman terms, but in the industry, this is evaluated in terms of TCO.
Yes! TCO (Total Cost of Ownership): A performance measure meant to uncover the lifetime costs associated with the equipment both before and after it is purchased.
(I) Direct Costs / Initial Costs: Which contribute to essentially fixing and start-up of equipment:
Engineering, procurement, shipping, controls, existing equipment removal, start-up assistance, installation.
CORKEN Compressors require Relatively Higher Capital investment capital but reasonable!
CORKEN Compressors have been specially engineered for Hazardous and Toxic applications specialty. Material offering consists of primarily Ductile Iron castings with Carbon Steel and Stainless-Steel internal parts with compatible material grades for varying hazardous gases in the industry.
But on the other side, there are certain advantages / features which balance out the above:
Most of our machines are Air Cooled Duty – which implies that no special requirements / additional accessories for water utility like water pump, motor, piping. Also, being very efficient machines, typical drive (motor) sizes required are comparatively smaller than equivalent water-cooled system.
CORKEN compressors have compact design with lubrication system inherent to Crankcase (no separate auxiliaries for lubrication), No special tools and tackles or commissioning spares required for installation, no special requirements for lifting, Compact and simple compressor foundation requirement for low cost on foundation material (concrete, chemicals, etc.) along with lower floor footprint saving area for installation.
Calculations denote that CORKEN compressors initial costs are *40% higher than equivalent machines but with*36% savings owing to Energy Efficient Equipment for CORKEN Machines despite the higher initial cost of machines.(M) Operational Costs: which contribute to regular running costs of the equipment:Operating labor, maintenance, utility costs, spare parts. Downtime.How Does a CORKEN Compressor help you for keep your bills in check post installation?A) Energy Savings 1 – CORKEN compressors are designed with close tolerances & therefore consumes lower power for the given output and hence are Energy Efficient/ (Less Energy Consumption).B) Energy Savings 2 – No Water dedicated for CORKEN machine, so no additional load on the existing water pump set upC) Utility Savings 1 – No Separate Frame Oil Lubrication, so oil fills are much lower than other equivalent machines with separate set up for oil circulation.D) Utility Savings 2 – No water required in most of the models, so water supply costs are in check from complete plant installation perspective. E) Utility Savings 3 – Other compressors require special tools and heavy cranes because of their size and weight. CORKEN Compressors are built for easy maintenance with part replacement made easy and many of them can be done online, so there is no need for complete disassembly of equipment.G) Unscheduled maintenance and downtime, material spillage (waste), contamination, off-spec material, and sanitation. This is situation that is experienced by almost all equipment every once in its life-time, however, with CORKEN installation being simpler and user friendly to use, for all the reasons illustrated earlier, the repair / replacement for these units are relatively affordable. Also, many offered features like special coatings on wetted parts for specific corrosive services, PEEK valve plates, Alloy 50 Piston and Packing Rings, K-rings Spacers, etc. increases the life of components and thus MTBF is lower and kept in check. Further, our solid outreach to our Customers gives us the edge for supporting them in maintenance and service and hence, we have minimal downtime with CORKEN compressors.Calculations denote *67% savings owing to discount factors in Installation expenses and *89% Savings owing to operating cost. Based on this we see almost *100% Savings for operational costs in comparison with equivalent machines.
(R) Indirect Costs / Remaining Cost: Asset’s price in the long term ( e.g., in 5 years – 10 years).This value signifies the life and worth of the compressor in a specified tenure of running. Typically for industrial equipment’s, 5-10 years is a fair amount of period to determine the “Salvage” value of the equipment with the industry designated depreciation rates for plant and machinery industry.Calculations denote *40% savings on Salvage Value for depreciation (15% for 5 years and 18.10% for another years) in comparison with equivalent machines.
The TCO calculation considers that an equipment has a price, but, besides this, many other factors will impact the amount of money spent over duration of usage of the equipment. The simplest calculation considers three factors:
I + M – R = TCO
TCO for CORKEN Compressor is about 37% Less than equivalent compressor over a period of 5 years and about 48% Less than equivalent compressor over a period of 10 years
*Typical Comparison for TCO made between Air Cooled Compressor and Equivalent Water-Cooled Compressor
Click here to know – Total Cost of Ownership