Leakage Cost Impact Assessment

OVERVIEW
Recent research in several industries has shown that the aggregate annual cost of plant piping system leakage can be substantial, and more importantly, it can be managed. JJENCO has developed and refined several Cost Impact Assessment methodologies to suit various types of process plants. These assessments are important because they are able – often for the first time – to pull together the actual aggregate cost impact on plant Operations & Maintenance budgets that may easily go unseen, due to the number of individual budgets affected.

These cost impact assessments are of fundamental importance to plant managers in improving their understanding of their plant’s potential cost savings resulting from improved fluid leak management. In addition, these assessments are designed to highlight issues and equipment that are significant contributors to the overall cost impact on operations, and to present the information in such a fashion as to help plant managers plan and prioritize their subsequent fluid leak management efforts.

DISCUSSION
At this time, JJENCO offers two types of cost impact assessments.

5-Year Baseline Assessment
The baseline study typically covers the preceding 5-year period, and presents the results in both an annual and aggregate form. This study is intended to not only accurately illustrate the 5-year trend and cumulative cost impact of leakage at a particular plant site, but also identifies those areas of greatest opportunity for future cost reductions. The final product consists of a a comprehensive viewgraph presentation of the results in electronic format, accompanied by a spreadsheet containing the processed data upon which the report is based.

Each study begins with an information request package provided to the assessment sponsor at the plant in advance of the site visit. The package contains a number of individual information request forms for key plant contacts that will be interviewed during the site visit. The purpose of the request form is to provide a guide for each plant contact to use in assembling the requested data in their area of responsibility in advance of the site visit.

The purpose of the site visit is to provide JJENCO an opportunity to review the assembled data with each provider and clarify any questions that arise during the discussion. During the site visit, JJENCO will also review the data download requirements from the plant information management system with the appropriate programmer to assure that we have the necessary core information to perform the assessment. The assessment then requires approximately two weeks for post-processing the data and report preparation.

JJENCO staff will be glad to assist plants wishing to develop or refine their fluid sealing programs, based upon the assessment results.

Annual Benchmarking Assessment
The annual benchmarking study is intended as a regular follow-on activity to the baseline study. While covering the same information, except only for the preceding year, it provides a necessary and valuable indicator for the effectiveness of a plant's fluid leak management program. It can also serve as a primary information source for goal-setting and modification of performance indicators. The deliverables for assessment are similar to those for the baseline study.

All plant information is held strictly confidential.

BENEFITS
Provides plant management with objective indication of cost impact on plant O&M budgets, and its relative trend over time. Useful for both FLM program cost justification and as an accurate benchmark of program effectiveness.

FORMAT
Combination of onsite interviews with key plant staff and subsequent data analysis resulting in Powerpoint presentation of results.