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Financial benefits to TEGG Electrical Preventive Maintenance Services
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© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 1
FACT:
"IT IS ALWAYS FAR
SAFER AND LESS COSTLY TO
PREVENT AN ELECTRICAL
PROBLEM THAN IT IS TO
REPAIR ONE!"
11
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 22
PLANT SERVICES MAGAZINE
“Regular preventive
maintenance is the best
protection you can have
against sudden and costly
power outages.”Source: Plant Services Magazine
“Regular preventive
maintenance is the best
protection you can have
against sudden and costly
power outages.”Source: Plant Services Magazine
33
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 4
Without preventive
maintenance, the failure rate of
electrical system components is
three times higher.
Without preventive
maintenance, the failure rate of
electrical system components is
three times higher.
Source: Institute of Electrical and Electronics Engineers
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 5
Source: Factory Mutual Insurance Company Study,National Fire Protection Association, NFPA/ANSI Std. 70-B
Nearly two-thirds of all electrical distribution fire losses could have been prevented.
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 6
“Over the years, FM Global Studies repeatedly have shown electricity to be the leading cause of fires and explosions. In a recent year, electricity accounted for 35 percent of the dollar loss and the number of losses in fire and explosion incidents. The average estimated dollar loss per fire and explosion was more than US$800,000.
In instances where no fire ensued, electrical breakdowns accounted for 51 percent of the number of losses and 47 percent of the dollar loss. The average loss estimate for non-fire electrical breakdown was nearly US$300,000.”
Source: “Maintaining Power for Productivity:Preventing Electrical Loss”, Page 1;Publication P9702, FM Global,Factory Mutual Insurance Company,Johnston, R.I., USA
FM Global is a registered trademark of Factory Mutual Insurance
Company, Johnston, RI, USA
66
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 7
“Without an EPM (Electrical Preventive Maintenance) program, management assumes a much greater risk of serious electrical failure and its consequences.”
“Without an EPM (Electrical Preventive Maintenance) program, management assumes a much greater risk of serious electrical failure and its consequences.”
Source: National Fire Protection Association, NFPA-70B
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 8
“A well-administered electrical preventive maintenance program will reduce accidents, save lives, minimize costly breakdowns and unplanned shutdowns of equipment.”
Source: National Fire Protection Association, NFPA-70B
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 99
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 10
• Performed by Certified Technicians who are also Qualified, Experienced ELECTRICIANS!
• Able to identify and analyze electrical issues missed by non-electricians.
• Often can fix problems "on the spot", saving you time and money.
How long has it been since your electrical system was visually inspected?
How long has it been since your electrical system was visually inspected?
10
Def. Ultrasonic: Having frequencies above the normal range of human hearing, i.e., higher than ~20kHz.
Just as Infrared Thermography converts colors that we can’t normally
“see” to colors that we can see, Ultrasonic Testing converts sounds
that we can’t normally “hear” to sounds that we can hear.
11
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 12
Ultrasonic testing will find critical issues that would be missed with infrared testing alone, such as insulation deterioration inside a conduit.
This issue was found in a 3-year old O2 plant on several sets of 5KV motor leads.
Ultrasonic Testing PREVENTED the costly failure!
12
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 13
“The most effective method of inspection is to combine Ultrasonic Testing with Infrared Thermography.”
13
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 14
Example of a high resistance electrical connection.
Def. Infrared: Light waves just outside the visible spectrum, that is, waves slightly longer than those visible to the human eye.
14
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 15
Because connection temperature rises exponentially with current flow, subtle issues can NOT be ignored, particularly if current flow may increase.
Our Certified TEGG Electricians/Technicians are trained to document issues even if the existing load temperature does not exceed IR Alert Criteria.
Example of a badly deteriorated contact with a lightly loaded circuit breaker. A potentially dangerous and costly problem was avoided!
15
Maintenance Technology Magazine, June 2001; www.mt-online.com
"Infrared inspection programs have proven that on average for every $1 spent on infrared electrical inspections, there is a $4 return on investment formaterials and labor from
fixing the problems before they fail."
16
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 17
Maintenance Technology Magazine, June 2001; Infrared Research, Inc., Rossville, GA
17
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 1818
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 191919
September Issue (Vol. 29, No. 9) www.energyusernews.com
John Fetters is the Energy User News Fundamentals of Energy Series Editor.
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 20
BUSINESS INTERRUPTION
“The average hourly outage costs incurred for office buildings are $.0681/square foot.”
Source: Institute of Electrical and Electronics Engineers
2020
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 21
BOMA.ORG THE MAGAZINE is published monthly by the Building Owners and Managers Association (BOMA) International, 1201 New York Avenue, N.W., Suite 300, Washington, D.C.; www.boma.org
Page 17
“A preventive maintenance program can ensure that a $5 fix does not become a $500 problem.”
“Moreover, preventive maintenance can have a direct impact on a property's net operating income (NOI) by helping owners and managers control operating costs."
“A preventive maintenance program can ensure that a $5 fix does not become a $500 problem.”
“Moreover, preventive maintenance can have a direct impact on a property's net operating income (NOI) by helping owners and managers control operating costs."
Building Owners and Managers Association
A Global Problem
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 22
“Improperly torqued connections and bad contacts cause increased amperage draw and power loss, as well as heating and arcing (which is both inefficient and dangerous).”
Source: National Energy Management Institute, Alexandria, VA; www.nemionline.org
NATIONAL ENERGY MANAGEMENT INSTITUTE
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 23
Without Preventive Maintenance, The
Distribution System Itself Can Waste
$1,000 to $4,000 In Electric Utility
Cost!Source: from Infrared Research, Inc. Infrared Thermography Can Prevent Energy Losses, Maintenance Technology, June 2001
Electric Utility Costs
$1,000 – $4,000 In Electric Utility Waste
2323
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 24
The Importance of SafetyThe Importance of Safety
Electrical Installation Standard (OSHA)
On April 5, 2004, (69 FR 17773-17842), the Occupational Safety and Health Administration (OSHA), U.S. Department of Labor, issued a proposed rule (29 CFR, Part 1910, Subpart S) that would revise the general industry electrical installation standard.
OSHA has determined that electrical hazards in the workplace pose a significant risk of injury or death to employees, and that the requirements in this proposed revised standard, which draw heavily from the 2000 edition of the National Fire Protection Association’s Electrical Safety Requirements for Employee Workplaces (NFPA 70E) and from the 2002 edition of the National Electrical Code (NEC), are reasonably necessary to provide protection from these hazards.
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 25
"Periodic maintenance on the switchboard includes cleaning, lubrication and exercising component parts. The interval between maintenance checks can vary depending upon the amount of usage and environmental conditions of each installation. The maximum recommended inspection interval is one year. This definition for periodic maintenance applies throughout this manual unless otherwise noted."
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 26
Whistle Stop Newsletter, Published by the Hartford Steam Boiler Inspection and Insurance Co., Hartford, CT, June 2003; HSB Is a leading global equipment breakdown insurer and reinsurer.
The following equipment is ranked by frequency of loss claims, accounts for the most common equipment breakdowns and includes exposures found in every business and organization.
1. ELECTRICAL EQUIPMENT (ALL TYPES)2. Air conditioning and refrigeration3. Boilers, pressure vessels and piping4. Machinery (all types)5. Computer equipment6. Motors (including air conditioning)7. Pumps 8. Telecommunications
What Equipment Breaks Down Most Often?
THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE CO.
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 27
Insurance/Certifications• Many Insurance
Companies and Certifying Entities Require Proactive Electrical Preventive Maintenance.
• We Will Provide You With The Necessary Compliance Certificates.
ASSET MANAGEMENTASSET MANAGEMENT
10 – 15% of Facility
Construction Cost!
10 – 15% of Facility
Construction Cost!
28
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 29
Proactive Care Extends The Life Of The Equipment And Delays Costly Capital Expenditures!
ASSET MANAGEMENTASSET MANAGEMENT
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 303030
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 31
“About one-third of all equipment losses are electrical in nature. About one-fourth of these losses are caused by loose connections. About eight electrical hot spots are detected per each IR survey. Of these, four are minor or intermediate in severity, and four are serious or critical. Each minor/intermediate problem detected results in an average potential savings of $500. For the serious and critical problems, this number is $3,000 - $5,000. Based on savings averages of these eight hot spots, the total potential savings are $14,000 - $22,000.”Source: National Center For Energy Management and Building Technologies:
Energy Reduction Through Practical Scheduled Maintenance (Report NCEMBT-061102, Prepared for the U.S. Department of Energy, November, 2006); Page 128. http://www.ncembt.org/downloads/NCEMBT-061102.pdf
NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES
145145
“About one-third of all equipment losses are electrical in nature. About one-fourth of these losses are caused by loose connections. About eight electrical hot spots are detected per each IR survey. Of these, four are minor or intermediate in severity, and four are serious or critical. Each minor/intermediate problem detected results in an average potential savings of $500. For the serious and critical problems, this number is $3,000 - $5,000. Based on savings averages of these eight hot spots, the total potential savings are $14,000 - $22,000.”Source: National Center For Energy Management and Building Technologies:
Energy Reduction Through Practical Scheduled Maintenance (Report NCEMBT-061102, Prepared for the U.S. Department of Energy, November, 2006); Page 128. http://www.ncembt.org/downloads/NCEMBT-061102.pdf
NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES
1451453131
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 32
• Predictable budget• Reduced risk of unexpected
outages• Lower repair costs• Reduce risk of business
interruptions• Extend the EDS useful life/lower replacement costs• Lower replacement costs• Reduce life safety risks• Reduce risk from electrical fires• Computerized documentation for your electrical distribution system
Financial Benefits of Electrical Preventive Maintenance:
Industrial Facilities
3333
Information Needed To Prepare Your Cost Benefit Analysis:
1. Preliminary System Evaluation
2. Estimated Business Interruption Cost
3. Facility Square Footage
4. Electrical Distribution System Age
5. Approximate Current Cost For Any Existing Electrical Testing
(e.g. Infrared Thermography)
Information Needed To Prepare Your Cost Benefit Analysis:
1. Preliminary System Evaluation
2. Estimated Business Interruption Cost
3. Facility Square Footage
4. Electrical Distribution System Age
5. Approximate Current Cost For Any Existing Electrical Testing
(e.g. Infrared Thermography)
Sample
TEGG PREMIUM