KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS DEPARTMENT OF CONSTRUCTION ENGINEERING AND MANAGEMENT TERM PROJECT PRESENTATION CEM – 512: Value Engineering.

KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS

DEPARTMENT OF CONSTRUCTION ENGINEERING AND MANAGEMENT

TERM PROJECT PRESENTATIONTERM PROJECT PRESENTATION

CEM – 512: Value EngineeringCEM – 512: Value Engineering

Ring Main UnitRing Main Unit

SF6SF6

BY BY

ABUL KARIM AL SULAIS

OUTLINE OF PRESENTATION

Introduction Objectives Job Plan

Information Phase Speculation (Generate alternatives) Evaluation Deployment Presentation Implementation

INTRODUCTION Electric Panel Factory at Dammam

has decided to modify compact substation production line by replacing Oil Ring Main Unit (RMU) with sulphur hexafluoride insulation (SF 6).

Replaced Oil Ring Main Unit (RMU) by SF6 insulation

OBJECTIVES

1.1. Replace Old and Obsolete Oil RMUReplace Old and Obsolete Oil RMU

2.2. Use SF6 RMUUse SF6 RMU

3.3. Select the best RMU Select the best RMU

4.4. RMU should be delivered in six lots / 2 RMU should be delivered in six lots / 2 year year

5.5. The cost of oil type RMU is 15,000 SRThe cost of oil type RMU is 15,000 SR

SF6 in RMU

SF6 gas is used in electrical power equipment

It is insulation and arc quenching medium in RMU

SF6 Oil

Type of Ring Main Unit

Compact Substation

Compact substation Layout

Transformer

LV

MV

Infromartion- Requirment

1. Type- tested

2. Independent of climat

3. Maintenance - free

4. 15 KV , 630 Amp , 60 HZ ,SF6,21 KA/sec

5. Hermetically -sealed welded switchgear enclosure

6. Compact and clear design

7. Short Delivery Period

compact Easy cable instalation

Encapsulated, climate proof,Easy accessable , etc.

maintenance free

Easy cable installation

Infromartion- Requirment

Information- Data

Quotations Catalog Competitor

Information- Cost Data

No Item Q.T U.SR T.SRDimension

DeliveryL H W

1 Oil type RMU 500 17,000 8,500,000 400 900 1700 14

2 ABB 500 22,000 10,450,000 355 775 1600 12

3 SIEMENS 500 23,000 11,040,000 105 835 1400 12

4 Merlin Gerin 500 20,000 9,600,000 500 775 1600 10

5 Saudi Lucy 500 20,000 9,200,000 600 1200 1400 8

6 Alstom 500 20,000 9,600,000 1010 700 1315 16

7 Hoeco 500 19,000 8,835,000 500 700 1200 20

8 Ormazabal 500 19,500 9,360,000 370 900 1800 20

9 F & G 500 19,500 9,400,000 320 640 1400 22

WhyTo install RMU in Compact S/S

To have good market share

How

Select RMU

FunctionBuy 500 RMU Select RMU

Function Worksheet

Identify Present Function

What dose it now do Verb noun

Feed Transformer Link Load Used Oil insulation

What must it do Verb Noun

Improve marker share Reduce Maintenance Easy operation &

installation Increase Customer acceptance

Analysis Phase- Ideas

The most used RMUs in KSA1. ABB2. Siemens3. Merlin Gerin4. Saudi Lucy5. Alstom6. Hoeco7. Ormazabal

Function Worksheet

Function : Re Design Compact substation using

SF6 RMU

Why : To be competitive in the market

How Select SF6 RMU

Reliability

1 ABB 6 9 9 8 32 2

2 Siemens 6 8 9 10 33 1

3 Saudi Lucy 5 9 9 7 30 3

4 Merlin Gerin

6 8 8 6 28 4

5 Alstom 5 4 4 6 19 5

6 Hoeco 3 3 2 5 13 7

7 Ormazabal 4 2 2 4 12 8

8 F & G 4 3 4 4 15 6

Probability of

Implem

entati

on

Replacement

Cost

Time of

Implem

entati

on Total

Rank

Reliability

Idea Comparison

Advantage

Disadvantage

Rank

ABB Compact Delivery +Spare parts

12

Alstom Compact Poor After Sales 5

F& G Price No Technical support

6

Holec Price After sales support 8

Merlin Gerin Price + Delivery After sales support 4

Ormazabal Price and compact

after sales support + Spare parts

7

Siemens Compact Delivery 10

Saudi Lucy Price + Delivery Dimension 3

Weight Evaluation

Raw ScoreAssigned

Weight

A Price 11 10

B Dimension 2 2

C Delivery 3 3

D Technical Support 9 8

E Service after sales 6 5

F Number of installed units 4 4

G Installation time 7 7

Weights for Evaluation

B C D E F G

How Important A A-3 A-2 A/D A/E A-2 G-1

3-Major Preference B B-2 D-2 E-2 F-2 G-2

2- Medium Preference C D-2 C/E C-2 G-2

1- Minor Preference D D-2 D-2 D/G

E E/F E/G

F F/G

G

Low “life cycle costs“!

independent of dust, animals and climateinsensitive to failures

easy to operatesafe for people

maintenance-free

compact

low building and real estate expenses

Salvage value after 15 years

Life Cycle Analysis for 500 units

N.o ItemOriginal ABB Siemens Saudi Lucy

1 Install Cost8,500,000 8,500,000 10,450,000 10,450,000 11,040,000 11,040,000 9,200,000 9,200,000

2 Annual operation

500x 250 125,000 500 x 120 60,000 500 x 100 50,000 500 x 150 75,000

3 Salvage cost500 x150 75,000 500 x 1000 500,000 500 x 1200 600,000 500 x 800 400,000

4 Life years

  15   15   15   15

Life Cycle Analysis I = 8% N= 15 P/A= 8.5595 P/F = 0.3152

P- Original = 9,546,298 P-ABB = 11,121,170 P- Siemens = 11,657,095 P-Saudi Lucy = 9,501,895

Choose Saudi Lucy since it is the lowest

Savings Original : Total SR 9,546,298

Proposed Saudi Lucy Total SR 9,501,895

Saving = 44,403# 0.465 %

Value Study Summary Comprising between SF6 and Oil RMU

Reduce the cost of compact substation Easy to install Increase customer acceptance of co S/S Increase the Factory market share RMU`s manufacturer will provided technical

support for changing implement the new design

Reduce maintenance cost Increase breakdown The difference in price between oil and SF6

is slightly very small

Implement Plan 1- How Should it be implemented?

The propped RMU from Saudi Lucy will be discussed with factory , purchasing and engineering managers to overcome any road blocks prior to management presentation

2- What should be changed and in what sequence?Within approval the purchasing department should finalize the price and delivery time. Then , the designer shall revise the drawings to meet new approved SF6 RMU.

3- Who should do it?Engineering department and do necessary changes prior compact substation submittal to procurement department

Implement Plan 4- How long should it take? Two weeks

5- Any deadline requiredAs per management report forcast

6- Implementation cost , internal house30 hours for engineering 20 procurement 50. Total cost SR 3000

THANK YOU