- Problem Definition
Reliability of equipment in oil and gas industry has been main concern in our company, storage tank to be specific. As main equipment it needs special attention, since we are taking care hydrocarbon product, which is highly flammable. Our goals are to asses reliability of storage tank such as corrosion rate and remaining plate thickness. To achieve our goals, it is important to determine the most economical method to asses reliability or conduct inspection of storage tank.
- Development of feasible alternatives
As commented in the blog for Week 2, to asses corrosion rate and remaining plate thickness alternatives :
- Investing an Ultrasonic Thickness (UT) Crawler as inspection tools
- Hire third party specialize on storage tank inspection
- Leasing UT Crawler as inspection tools
It is important to choose which most efficient way to conduct inspection, especially with numerous number of storage tank.
- Possible Solution / Alternative
Calculation of investment, maintenance cost, operating cost and rent cost based on inquiry from UT Crawler Vendor for new equipment or leasing and Third Party specialize in this field.
- Selection of Criteria
The Acceptance criteria is the option with lowest total net worth.
- Analysis and Comparison of the Alternatives
Table 1: Summary result of investing, renting, and leasing (Operating Lease Scenario) data
The scenario for leasing is “Operating Lease”, with lease rental payment is 75% of investment price.
Table 2: Useful life and Total Number of Inspection in 1 year
Table 3: Book Value at the end of life time, using Straight Line Depreciation
Calculation summary :
Table 4 : Present Worth for Purchasing
Table 5 : Present Worth for Renting
Table 6 : Present Worth for Leasing
Table 6 : Calculation Net Worth Purchase, With i : 7% (Bank Indonesia Rate – 2016)
- Selection and Preferred Alternatives
Table 6 show that total cost of leasing UT Crawler is the lowest. For long term inspection with numerous number of tank, leasing UT Crawler is the most efficient way.
- Performance Monitoring and the Post Evaluation of Result
It is recommended to review feasible leasing alternatives, and conduct performance equipment monitoring. For example Net lease scenario, where the payment not include maintenance and insurance, or Capital Lease scenario, where we can buy the asset at the end of lease term. Regard, the maintenance cost is very low and almost need no maintenance, also we can calibrate UT Crawler by our self.
- Sullivan, William G., Wicks, Elin M. & Koelling, C. Patrick. (2014). Engineering Economy 16th edition page 71-73, page 213 – 215, and page 332 – 337, England: Pearson Education Limited.
- Module 10-3 Managing Change The Owner’s Perspective (2015).
Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective
- Module 06-5 – Acquiring Equipment for The Project (2016)
Retrieved from http://www.planningplanet.com/guild/gpccar/acquiring-equipment-for-the-project
- Press Release (2016)
Retrieved from http://www.bi.go.id/en/ruang-media/siaran-pers/Pages/sp_181416.aspx