KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS DEPARTMENT

KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS DEPARTMENT OF CONSTRUCTION ENGINEERING AND MANAGEMENT TERM PROJECT PRESENTATION CEM – 512: Value Engineering Ring Main Unit SF 6 BY ABUL KARIM AL SULAIS

OUTLINE OF PRESENTATION n n n Introduction Objectives Job Plan n n n Information Phase Speculation (Generate alternatives) Evaluation Deployment Presentation Implementation

INTRODUCTION n n 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 SF 6 insulation

OBJECTIVES 1. Replace Old and Obsolete Oil RMU 2. Use SF 6 RMU 3. Select the best RMU 4. RMU should be delivered in six lots / 2 year 5. The cost of oil type RMU is 15, 000 SR

SF 6 in RMU n n SF 6 gas is used in electrical power equipment It is insulation and arc quenching medium in RMU

Type of Ring Main Unit SF 6 Oil

Compact Substation

Compact substation Layout Transformer MV LV

Infromartion- Requirment 1. Type- tested 2. Independent of climat 3. Maintenance - free 4. 5. 15 KV , 630 Amp , 60 HZ , SF 6, 21 KA/sec Hermetically -sealed welded switchgear enclosure 6. Compact and clear design 7. Short Delivery Period

Infromartion- Requirment maintenance free compact Easy cable installation Easy cable instalation Encapsulated, climate proof, Easy accessable , etc.

Information- Data n n n Quotations Catalog Competitor

Information- Cost Data Dimension No Item Q. T U. SR T. SR Delivery L H W 900 1700 1 Oil type RMU 500 17, 000 8, 500, 000 400 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

Function Worksheet Why To install RMU in Compact S/S To have good market share Function Buy 500 RMU Select RMU How Select RMU

Identify Present Function n What dose it now do n Verb n n Feed Link Used What must it do n Verb n n Improve Reduce Easy Increase noun Transformer Load Oil insulation Noun marker share Maintenance operation & installation Customer acceptance

Analysis Phase- Ideas n The most used RMUs in KSA 1. 2. 3. 4. 5. 6. 7. ABB Siemens Merlin Gerin Saudi Lucy Alstom Hoeco Ormazabal

Function Worksheet n Function : n n Why : n n Re Design Compact substation using SF 6 RMU To be competitive in the market How n Select SF 6 RMU

of en e m lem p Im st Co To ta l Ra n k 1 ABB 6 9 9 2 Siemens 6 8 3 Saudi Lucy 5 4 Merlin Gerin n tio ta Ti t en m e ac pl Re Pr Im oba Re pl bil em ity lia en of bi ta lity tio n 8 32 2 9 10 33 1 9 9 7 30 3 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

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 Score Assigned 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 How Important 3 -Major Preference 2 - Medium Preference 1 - Minor Preference A C D E F G A-3 A-2 A/D A/E A-2 G-1 B B-2 D-2 E-2 F-2 G-2 C D-2 C/E C-2 G-2 D D-2 D/G E E/F E/G F F/G G

Low “life cycle costs“! independent of dust, animals and climate insensitive to failures maintenancefree Salvage value after 15 years easy to operate safe for people compact low building and real estate expenses

Life Cycle Analysis for 500 units Original N. o ABB Siemens Saudi Lucy Item 8, 500, 000 4 11, 040, 000 9, 200, 000 125, 000 500 x 120 60, 000 500 x 100 50, 000 500 x 150 75, 000 500 x 1000 500, 000 500 x 1200 600, 000 500 x 800 400, 000 3 10, 450, 000 500 x 150 2 10, 450, 000 500 x 250 1 8, 500, 000 15 15 Install Cost Annual operation Salvage cost Life years

Life Cycle Analysis I = 8% P/A= 8. 5595 N= 15 P/F = 0. 3152 n P- Original P-ABB P- Siemens P-Saudi Lucy = = n Choose Saudi Lucy since it is the lowest n n n 9, 546, 298 11, 121, 170 11, 657, 095 9, 501, 895

Savings n n Original : Total SR 9, 546, 298 n Proposed Saudi Lucy Total SR 9, 501, 895 n Saving = 44, 403 n # 0. 465 %

Value Study Summary n Comprising between SF 6 and Oil RMU n n n n 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 SF 6 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 SF 6 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 required As per management report forcast 6 - Implementation cost , internal house 30 hours for engineering 20 procurement 50. Total cost SR 3000

THANK YOU