Valves That Provide Value

Determining economic value of investments through total cost of ownership analysis

Because MOGAS valves are more durable and have a longer life cycle, they cost less over time.

Total Cost of Ownership (TCO) analysis often shows there can be a large difference between the price of something and its long term costs. Several analytical methods can be used to justify the purchase of capital equipment—such as critical valves—but it really comes down to getting the expected performance of your purchase.

The potentially diminished performance of a valve can cause a significant reduction in the plant’s ability to generate revenue. When evaluating a financial investment, all aspects of operating and maintaining severe service valves should be just as important as the initial purchase price. To protect such economic considerations, original valve manufacturers need to validate their commitment to a specific market through continuous innovation and advancements, always seeking to extend the life of the valve.

Key components to TCO

MOGAS integrates many activities into their daily business to help focus on providing the best metal-seated ball valve in the world. Teams are dedicated to research and analysis, coatings development, and product advancements, along with asset management and field service agreements.

Discovering All the Numbers

When planning a severe service valve purchase, here are some important variables to consider:

Purchase price (including actuation)	$ __________
Spare parts / replacement valve(s)	$ __________
Cost if critical path valve fails	$ __________
Inventory costs to stock / insurance costs	$ __________
Downtime / lost availability	$ __________
Service / removal & installation costs	$ __________
Value of plant / personnel safety	$ __________
Documentation storage / retrieval	$ __________

This is just a partial list, but it emphasizes the importance of total cost of ownership, and understanding the true return on investment or the avoidance of outrageous loss of revenue due to downtime.